1. BROOKINGS INSTITUTION, WASHINGTON DC, 20 TH FEB, 2014 HONEST PROSPER NGOWI; pngowi2002@yahoo.com pngowi2002@yahoo.com +255 754 653 740; MZUMBE UNIVERSITY, TANZANIA 1 Converting Future Gas Revenues Into Pro-poor Development: Approaches, Challenges and Solutions in Tanzania 1

2. Introduction/Context  Continuous discoveries of commercial quantities of natural gas and possiblly oil in Tanzania  Over 20 companies on the ground in Tanzania, especially Mtwara, Lindi and Coast regions  National Natural Gas Policy October 2013  Construction of gas pipeline (530km) Mtwara to Dar  4 th round of exploration bidding in late 2014  Vibrant debate on various oil and gas issues: CSOs, academia, media, religious leaders, general public

3. From Revenues to Pro-poor Development: The How Question  Investment in human capital: education, health and other social sectors... Social security etc  Invest in economic infrastructure of significance to the poor: rural transport & communication infrastructure  Distribution and re-distribution through fiscal measures: pro-poor subsidies & taxation  More pro-poor budgetary allocations 

4. Revenues for pro-poor development  Revenue sharing with local governments: Local pro-poor development expenditure  Direct cash transfer – conditional/unconditional  Capitalization of pro-poor financial institutions – banks, MFIs (eg agric bank for smallholders)  Inter-generational thinking/investments: oil and gas fund  Pro-poor CSRs from investors

5. Challenges & Solutions  High expectations: Be realistic  Uncertain future revenues: Forecast scenarios  Many promises, Many demands: Prioritize  Decions/agreeents on proportion of income to be consumed, saved and invested  Determining fair share of resources allocation in the short, medium and long term: Strike a balance  Absorption capacity/Inflationary challenges

6. Challenges & solutions  Resource curse  Revenue volatility: Smooth it, futures contracts  Government capacity to deliver: PPP, but is private sector adequate?  Which group of the poor – Geography (whole country), demographics: age, gender: Consider all

7. More solutions  Learn from best and bad practices

8. The End, Thank You All 