Optimizing natural gas utilization for socio-economic transformation in East Africa

DAR ES SALAAM: East Africa is at a pivotal moment in its energy transition, with natural gas emerging as a powerful catalyst for economic growth, industrialization, and energy security.

With vast proven reserves in Tanzania, Mozambique, and Kenya, natural gas has the potential to power industries, create jobs, and provide affordable energy for millions.

However, unlocking this potential requires strategic investments, policy support, and strong public-private partnerships. At EAPCE’25, discussions will focus on how the region can leverage natural gas for economic transformation while ensuring affordability, accessibility, and sustainability.

Expanding access to electricity remains one of the most pressing challenges for East Africa, and natural gas offers a reliable, scalable, and cost-effective alternative for electrification, particularly in underserved communities. Many rural and peri-urban areas remain disconnected from national power grids, relying on expensive and unreliable energy sources such as diesel generators, charcoal, and firewood.

Mini-grids powered by natural gas present a sustainable solution, delivering stable electricity to households, schools, and businesses. Tanzania has made a remarkable stride on this where about 34% of its power in the national grid is generated from locally produced natural gas from Songo Songo and Mnazi Bay producing fields.

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Other EAC countries are already exploring small-scale gas-to-power projects that can be expanded across the region. Nigeria’s success in using gas-to-power projects to electrify remote villages provides a model for East Africa to follow. By integrating gas-fired power plants into rural electrification programs, the region can bridge the energy gap and accelerate economic activities in previously neglected areas.

However, extending gas infrastructure beyond urban centers requires deliberate investment in pipelines, storage facilities, and last-mile distribution networks, ensuring that even remote communities benefit from natural gas resources.

In addition to electrification, natural gas presents a transformative opportunity for industrialization, with the potential to power manufacturing plants, drive fertilizer production, sustain petrochemical industries, and even revolutionize the transport sector.

Countries that effectively harness gas resources for industrialization can significantly lower energy costs, enhance productivity, and drive employment growth. Tanzania’s planned liquefied natural gas (LNG) plant in Lindi is a prime example of how gas infrastructure can attract foreign investment, generate revenue, and create thousands of direct and indirect jobs.

Kenya is also looking to develop gas-based industrial hubs, providing businesses with stable and cost-effective energy solutions. Encouraging local processing of gas-based products can add value to the industry while reducing dependency on imports, further boosting economic diversification.

As East Africa looks to compete in global markets, reliable and competitively priced energy will be critical for attracting investors and expanding manufacturing output.

Ensuring that natural gas is both affordable and accessible to all segments of the population demands a coordinated effort between governments, the private sector, and development partners.

Investment frameworks must prioritize not only large-scale industrial users but also small businesses and households that stand to benefit from affordable gas. Regulatory incentives such as tax breaks, duty exemptions, and public-private financing models can reduce the cost burden on consumers while ensuring sustainable growth of the sector.

Developing localized distribution centers and modular LNG terminals can make gas more accessible to rural and off-grid populations. Governments must also address infrastructure challenges by investing in gas transportation and distribution networks that reach marginalized communities, ensuring no one is left behind.

Lessons from other resource-rich regions show that a well-structured pricing and subsidy model can facilitate widespread gas adoption, improving energy security and economic inclusivity. Additionally, harmonizing regional policies across the East African Community (EAC) can enhance cross-border gas trade, creating a larger market for investors and reducing price volatility.

Widespread adoption of natural gas will depend not just on infrastructure and affordability but also on shifting public perceptions and encouraging behavioral change.

Many households and businesses remain skeptical of gas due to concerns over safety, cost, and reliability. A well-executed public education campaign highlighting the benefits of gas-such as cost savings, environmental sustainability, and efficiency-can drive demand and ensure smooth adoption. Countries such as India have successfully implemented large-scale public engagement initiatives to encourage households to switch to LPG and natural gas, and East Africa can adapt similar strategies to promote widespread use.

As EAPCE’25 approaches, the region has a unique opportunity to redefine its energy future. Eng. Felchesmi Mramba, Permanent Secretary of Tanzania’s Ministry of Energy, emphasized the importance of collaboration: “Natural gas is more than just an energy source-it is an engine for economic transformation.

By investing in infrastructure, promoting industrial utilization, and ensuring affordability, we can create a more inclusive and sustainable energy future for East Africa.” The discussions at EAPCE’25 will lay the foundation for policies and investments that will shape the future of natural gas utilization, turning potential into progress and ensuring that every East African benefits from the region’s energy wealth.

Now is the time for decisive action. By embracing a forward-looking strategy that integrates infrastructure investment, regulatory reforms, and consumer engagement, East Africa can position itself as a regional energy powerhouse, driving economic growth, creating jobs, and improving energy security for millions of people. The transformation of natural gas from an underutilized resource into a mainstream economic driver is within reach-if the right steps are taken today.