Minister Sospeter Muhongo vs Chairman Reginald Mengi: Personal counter attacks should be replaced by collaboration in their services for Tanzanian generations
Suggestion that individual Tanzanians who wish to participate in the upstream activities of oil and natural gas prospects development in the country should tender to compete with foreign companies for the few Tanzanian oil and/or natural gas prospects on auction is impractical and discriminating majority of Tanzanian citizens.
While countries like South Africa, Nigeria and Egypt already have several local multibillionaires who are (as individuals) able to contribute the huge seed capital involved in the appraisal of oil and natural gas prospects, Tanzania still doesn't have a single billionaire or a public company which can overcome the challenge and win one or two of the Tanzanian oil and/or natural gas prospects on auction.
Suggestion discriminates the majority of the huge population of nearly 45 million Tanzanian citizens who (as individuals) are unable to mobilize the seed capital required to qualify themselves for one or two of the prospects on auction, but,
Suggestion that individual Tanzanians who wish to participate in the upstream activities of oil and natural gas prospects development in the country should tender to compete with foreign companies for the few Tanzanian oil and/or natural gas prospects on auction is impractical and discriminating majority of Tanzanian citizens.
While countries like South Africa, Nigeria and Egypt already have several local multibillionaires who are (as individuals) able to contribute the huge seed capital involved in the appraisal of oil and natural gas prospects, Tanzania still doesn't have a single billionaire or a public company which can overcome the challenge and win one or two of the Tanzanian oil and/or natural gas prospects on auction.
Suggestion discriminates the majority of the huge population of nearly 45 million Tanzanian citizens who (as individuals) are unable to mobilize the seed capital required to qualify themselves for one or two of the prospects on auction, but,
who (as a collective) are able to contribute and mobilize such seed capital and qualify, if well sensitized and assisted in the mobilization of such seed capital by the government and other well-wishers like Dr. Reginald Mengi.
Suggestion is also unprofessional because to succeed in the business of oil and natural gas prospects appraisal, one has to seek collaboration with others in order to enable mobilization of the huge minimal seed capital required to enable his or her simultaneous participation in the appraisal of the minimum number of oil and/or natural gas prospects of variable characteristics, which are required to minimize risk, enhance the probability of success and justify investment in the business.
Most of the foreign companies tendering for one or two of the Tanzanian oil and/natural gas prospects too, are multinationals composed of private and public sectors, and workers (through their social security funds) on expansion of their global portfolio of prospects involved in the minimization of business risk to enhance the probability of success, thanks to the multinational public and private sectors collaboration empowering and enabling them to mobilize the huge seed capital involved.
Correct approach for Tanzania should have therefore been TPDC to retain (on behalf of all Tanzanians) free carried sovereign shares, plus another 10-20 % shares (for example) which could be sold to individuals in the local private sector and workers (through their social security funds) and maximize participation and benefit of majority Tanzanians in all foreign involved oil and/or natural gas appraisals which would happen in the country, and minimize risk to enhance the probability of success.
Collaboration has always been the most effective empowerment tool for the majority poor populations worldwide in their struggle for deserved share of the global exploitation of the natural capital inherent in strategic mineral deposits like oil and/or natural gas, now dominated by the minority well financed, thanks for the correct choice of collaboration as their main empowerment tool.
In place of the Chairman of private sector call for private sector to be enabled to participate in the most rewarding upstream oil and/or natural gas appraisal in the country turned into un-ending personal counter attacks between the highly respected academician and Hon. Minister of Energy and Minerals (Prof. S. Muhongo) and the highly successful and respected local entrepreneur, creator of jobs and supporter of the disadvantaged throughout Tanzania (Dr. R. Mengi), the Government (through the Ministry of Energy and Minerals) should instead mobilized and coordinated joint consultations with representative-experts and leaders of the local private sector and workers to find out how much seed capital the local private sector and workers could contribute for shares in the would be foreign involved oil and/or natural gas appraisal in the country, and the number of shares which should be reserved for the local private sector and workers in any of the oil and/or natural gas prospects which would be granted to foreign companies in the country.
Under good leadership, strong partnership between local private and public sectors, and workers are main determinants of success in the development of Tanzania's economy which benefits its generations.
The call made by the Chairman of Private Sector foundation for local private sector to be enabled to participate in the most rewarding foreign dominated (in most developing countries) upstream activity in oil and/or natural gas appraisal in the country is very practical and important in ensuring the foreign involved exploitation of the natural capital inherent in our strategic mineral resources like oil and natural gas is delivering the share deserved to Tanzanian generations.
The Government (through the Ministry of Energy and Minerals) should instead pick on the good idea from the Chairman of local private sector foundation and engage representative experts and/or leaders of the local private and public sectors, and workers in the determination of optimal partnership between the local private and public sectors, and workers, and the collective seed capital local private sector and workers could contribute for shares, and in addition to the sovereign shares reserved for State (on behalf of all Tanzanians), the number of shares which should be reserved to local private sector and workers as empowerment to enhance their productivity.
Top leaders in our country have always been calling for the rich in the country to come forward and invest in the development and exploitation of mineral prospects to reverse trend dominated by foreigners in the country, and Dr Reginald Mengi is one of the few who responded practically and continuously sensitizing many others to follow his steps. What's wrong if he is one of the three Tanzanians legally holding largest prospecting (mostly reconnaissance) grounds on green-fields in the country?
Holding numerous grounds for prospecting minimizes risk to maximize the probability of success in the mobilization of exploration funds from financial institutions and/or attraction of foreign partners and investments.
Failure to spend or complete planned exploration programs is justifiable, when take into consideration fluctuation of sought minerals demand and value on the global market, in which, it would be very difficult to raise exploration monies for minerals which have lost values and demands on the global market, and counterproductive to continue investing on what has lost market value when one should postpone here to invest there in the exploration for minerals which have gained value and demand on the global market.
Again, the accusation that most local holders of exploration grounds are speculators or middle dealers in the local exploration business is unprofessional and senseless because most junior explorers worldwide are also speculators or middle dealers, and the speculation or middle deals which benefits locals is also main in the attraction of foreign investors and investments, and discovery of new deposits in the country.
Instead of blaming Dr. Reginald Mengi and other local holders of prospecting licences for failing to accomplish exploration programs as desired, the government should instead find out some ways of enabling them to accomplish.
For example, the huge hikes of exploration fees and rents Government introduced recently are such a huge burden most locals and foreign investors wouldn't be able to raise for the Tanzanian exploration, mostly happening on green-fields.
Instead of the hike, the rents and fees which existed before should have been reduced in order to enable more Tanzanians, especially graduating geologists to go for self employment in the generation and appraisal of Tanzanian mineral prospects, and their promotion for joint ventures with junior or large scale explorers to maximize local participation and benefit, instead of going for job seeking in the environment of diminishing exploration activity caused by prohibitive exploration rents and fees government escalated recently.
Written by: Dr Antipas Massawe (Mining Engineer), Dar es Salaam
Suggestion is also unprofessional because to succeed in the business of oil and natural gas prospects appraisal, one has to seek collaboration with others in order to enable mobilization of the huge minimal seed capital required to enable his or her simultaneous participation in the appraisal of the minimum number of oil and/or natural gas prospects of variable characteristics, which are required to minimize risk, enhance the probability of success and justify investment in the business.
Most of the foreign companies tendering for one or two of the Tanzanian oil and/natural gas prospects too, are multinationals composed of private and public sectors, and workers (through their social security funds) on expansion of their global portfolio of prospects involved in the minimization of business risk to enhance the probability of success, thanks to the multinational public and private sectors collaboration empowering and enabling them to mobilize the huge seed capital involved.
Correct approach for Tanzania should have therefore been TPDC to retain (on behalf of all Tanzanians) free carried sovereign shares, plus another 10-20 % shares (for example) which could be sold to individuals in the local private sector and workers (through their social security funds) and maximize participation and benefit of majority Tanzanians in all foreign involved oil and/or natural gas appraisals which would happen in the country, and minimize risk to enhance the probability of success.
Collaboration has always been the most effective empowerment tool for the majority poor populations worldwide in their struggle for deserved share of the global exploitation of the natural capital inherent in strategic mineral deposits like oil and/or natural gas, now dominated by the minority well financed, thanks for the correct choice of collaboration as their main empowerment tool.
In place of the Chairman of private sector call for private sector to be enabled to participate in the most rewarding upstream oil and/or natural gas appraisal in the country turned into un-ending personal counter attacks between the highly respected academician and Hon. Minister of Energy and Minerals (Prof. S. Muhongo) and the highly successful and respected local entrepreneur, creator of jobs and supporter of the disadvantaged throughout Tanzania (Dr. R. Mengi), the Government (through the Ministry of Energy and Minerals) should instead mobilized and coordinated joint consultations with representative-experts and leaders of the local private sector and workers to find out how much seed capital the local private sector and workers could contribute for shares in the would be foreign involved oil and/or natural gas appraisal in the country, and the number of shares which should be reserved for the local private sector and workers in any of the oil and/or natural gas prospects which would be granted to foreign companies in the country.
Under good leadership, strong partnership between local private and public sectors, and workers are main determinants of success in the development of Tanzania's economy which benefits its generations.
The call made by the Chairman of Private Sector foundation for local private sector to be enabled to participate in the most rewarding foreign dominated (in most developing countries) upstream activity in oil and/or natural gas appraisal in the country is very practical and important in ensuring the foreign involved exploitation of the natural capital inherent in our strategic mineral resources like oil and natural gas is delivering the share deserved to Tanzanian generations.
The Government (through the Ministry of Energy and Minerals) should instead pick on the good idea from the Chairman of local private sector foundation and engage representative experts and/or leaders of the local private and public sectors, and workers in the determination of optimal partnership between the local private and public sectors, and workers, and the collective seed capital local private sector and workers could contribute for shares, and in addition to the sovereign shares reserved for State (on behalf of all Tanzanians), the number of shares which should be reserved to local private sector and workers as empowerment to enhance their productivity.
Top leaders in our country have always been calling for the rich in the country to come forward and invest in the development and exploitation of mineral prospects to reverse trend dominated by foreigners in the country, and Dr Reginald Mengi is one of the few who responded practically and continuously sensitizing many others to follow his steps. What's wrong if he is one of the three Tanzanians legally holding largest prospecting (mostly reconnaissance) grounds on green-fields in the country?
Holding numerous grounds for prospecting minimizes risk to maximize the probability of success in the mobilization of exploration funds from financial institutions and/or attraction of foreign partners and investments.
Failure to spend or complete planned exploration programs is justifiable, when take into consideration fluctuation of sought minerals demand and value on the global market, in which, it would be very difficult to raise exploration monies for minerals which have lost values and demands on the global market, and counterproductive to continue investing on what has lost market value when one should postpone here to invest there in the exploration for minerals which have gained value and demand on the global market.
Again, the accusation that most local holders of exploration grounds are speculators or middle dealers in the local exploration business is unprofessional and senseless because most junior explorers worldwide are also speculators or middle dealers, and the speculation or middle deals which benefits locals is also main in the attraction of foreign investors and investments, and discovery of new deposits in the country.
Instead of blaming Dr. Reginald Mengi and other local holders of prospecting licences for failing to accomplish exploration programs as desired, the government should instead find out some ways of enabling them to accomplish.
For example, the huge hikes of exploration fees and rents Government introduced recently are such a huge burden most locals and foreign investors wouldn't be able to raise for the Tanzanian exploration, mostly happening on green-fields.
Instead of the hike, the rents and fees which existed before should have been reduced in order to enable more Tanzanians, especially graduating geologists to go for self employment in the generation and appraisal of Tanzanian mineral prospects, and their promotion for joint ventures with junior or large scale explorers to maximize local participation and benefit, instead of going for job seeking in the environment of diminishing exploration activity caused by prohibitive exploration rents and fees government escalated recently.
Written by: Dr Antipas Massawe (Mining Engineer), Dar es Salaam
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