MWE Correspondent
Tanzania’s natural gas industry has witnessed significant growth over the past five years, with revenues climbing impressively from $55.1 million in 2020 to a record $144.1 million in 2024.
This growth underscores the country’s expanding role in the global energy market and highlights its ongoing efforts to leverage natural resources for economic development.
The most recent Tanzania in Figures report from the National Bureau of Statistics (NBS) points to the Mnazi Bay Gas Plant — situated in the Mtwara Region in southern Tanzania — as the key driver behind this surge in revenue. This facility has outperformed the older, well-known Songo Songo gas field, which had been Tanzania’s primary natural gas source for years.
By 2024, Mnazi Bay accounted for almost 77% of the country’s total natural gas income, generating over $111 million — more than three times the $33 million revenue reported from the Songo Songo plant. This dramatic shift signals the success of targeted investments, improved regulatory oversight by bodies such as the Energy and Water Utilities Regulatory Authority (EWURA), and recent changes in ownership that have revitalized operations at Mnazi Bay.
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The steady increase in Tanzania’s gas revenue reflects a broader transformation in the country’s energy sector. Starting from $55.1 million in 2020, revenues rose to $58.9 million in 2021 and $71.3 million in 2022. In 2023, the revenue nearly doubled, reaching $124.5 million, before hitting the record $144.1 million in 2024. This trend highlights Tanzania’s growing capacity not only to meet domestic energy needs but also to position itself as a regional energy supplier.
The success of Mnazi Bay demonstrates how modern infrastructure, coupled with sound management practices, can unlock substantial economic benefits. This progress is vital for Tanzania’s ambitions to boost energy independence and promote sustainable economic growth. Moreover, the expansion of the natural gas sector contributes to economic diversification, helping reduce reliance on traditional sectors like agriculture.
Looking ahead, continued investment and supportive policies will be essential to sustain this momentum and further strengthen Tanzania’s position in the East African energy market. The government’s focus on regulatory improvements and resource management will play a key role in ensuring that revenues from natural gas contribute to broader social and economic development goals.
