In the Name of Standards: Challenges of Achieving Local-local Content(s) in Natural Gas Investments in Lindi and Mtwara Regions in Tanzania

Abstract

Recent literature has shown that resource curse can occur at the subnational level,
and in some cases without resources. This paper draws from the literature on
subnational resource curse and local-local content. It presents evidence from a study
on processes in which investments are implemented and negotiated between
different actors. It provides an understanding on how and why resource curse occurs.
The paper is based on a study that focused on two cases of construction: the natural
gas pipe from Mtwara to Dar es Salaam, and the liquefied natural gas (LNG) in
Lindi. A total of 85 interviews were done with local communities, the government,
investors and non-governmental organizations. This was complemented by a review
of different models for compensation or benefits to the communities. The study
found out that none of the frameworks for benefitting the local communities can
work in the localities where resources are extracted without modification. This is due
to the fact that investors set unrealistic standards for the delivery of services, and
there was also a conflict between national and international standards. As such, the
local content was not customized to the local context of the localities where the
natural gas was extracted, but only at the national level, which ultimately deprived
these localities of the benefits of having the expected and real development from their
resources. The paper argues that for local content to bring positive changes in the
communities where gas is extracted, a local-local content is needed. It further argues
that for the frameworks to function, they need to be applied not in isolation but in
combination and modified to take into account the local-local context.