TANZANIA: EAST Africa’s oil and gas industry is at a turning point. As the region intensifies exploration and production, a critical question emerges-how can these resources translate into sustainable economic growth, industrial development, and broad-based benefits for local communities?
Here, the East African Petroleum Conference and Exhibition (EAPCE’25) aims to answer this question by emphasizing local content development, responsible resource management, and the delicate balance between petroleum development and environmental sustainability.
Building local capacity, workforce development
For East Africa to maximize its energy wealth, it must ensure that local businesses, workers, and entrepreneurs are fully integrated into the petroleum value chain.
Governments across the region are increasingly prioritizing local content policies, requiring international oil companies to invest in local skills development, subcontract with indigenous firms, and create employment opportunities for East Africans.
Tanzania and Uganda have led the charge, implementing stringent local content regulations that mandate oil and gas firms to source goods and services locally.
Kenya is also strengthening its local content policies, ensuring that small and medium-sized enterprises (SMEs) can benefit from the energy sector boom.
Rwanda, though still in the early stages of oil and gas exploration, is positioning itself as a hub for petroleum-related services and skills training. Industry experts argue that training local workers in technical fields such as engineering, geophysics, and drilling operations is key to reducing dependency on foreign expertise.
Investment in petroleum training institutes and collaborations between international companies and local universities can bridge the skills gap, ensuring East Africans are at the forefront of their region’s energy industry.
Sustainable revenue, economic growth One of the key priorities for resource-rich nations is ensuring that oil revenues contribute to long-term economic stability and growth.
East African governments are looking at innovative ways to channel petroleum revenues into long-term economic development by diversifying their economies beyond the oil and gas sector.
Norway’s sovereign wealth fund is often cited as a model, ensuring that oil wealth is reinvested into public services, infrastructure, and future generations.
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East Africa is now exploring similar strategies, with Tanzania having its Oil and Gas Revenue Management Act enacted in 2015 and Uganda is drafting frameworks for oil revenue management to prevent economic volatility.
Diversification is also a key agenda at EAPCE’25. Countries are looking at how oil and gas revenues can stimulate industrialization in non-energy sectors such as manufacturing, agriculture, and technology.
By leveraging natural resource wealth to fund infrastructure, education, and innovation, East Africa can create a resilient and future-proof economy.
Balancing development, sustainability While petroleum development presents immense economic opportunities, it must be undertaken with environmental and social responsibility in mind.
With global climate concerns rising, East Africa faces the challenge of balancing fossil fuel extraction with commitments to cleaner energy transitions and environmental conservation.
Several initiatives are underway to ensure responsible petroleum production. Tanzania and Kenya have introduced strict environmental impact assessment (EIA) regulations that require oil firms to minimize ecological damage and invest in carbon offset programs.
Uganda’s Lake Albert project has integrated wildlife conservation measures to protect surrounding biodiversity, while Rwanda is taking a proactive approach by ensuring its nascent oil and gas industry aligns with green growth principles.
Community engagement is another crucial element. Oil and gas projects must prioritize local communities by providing employment, infrastructure, and social development programs.
The success of East Africa’s petroleum sector will ultimately be measured not just by barrels produced, but by how well local populations benefit from this wealth.
Regional cooperation, policy alignment EAPCE’25 provides a platform for policymakers, investors, and energy leaders to align their strategies and foster regional cooperation in petroleum governance.
As East Africa positions itself as a significant player in the global energy landscape, collaboration among partner states will be key to ensuring stability, transparency, and shared prosperity.
Eng. Felchesmi Mramba, Permanent Secretary of Tanzania’s Ministry of Energy, emphasized the need for a collective approach: “The future of East Africa’s energy sector depends on how well we harness our resources to benefit our people.
Through strong policies, regional collaboration, and sustainable investment frameworks, we can transform our petroleum wealth into a foundation for industrial growth, employment, and long-term prosperity.”
As EAPCE’25 approaches, the focus will be on ensuring that East Africa’s oil and gas resources serve as a catalyst for sustainable development, rather than a source of economic vulnerability.
By prioritizing local content, strategic revenue management, and environmental stewardship, the region is charting a course toward a prosperous and inclusive energy future.
For investors, policymakers, and energy stakeholders, the time to engage is now. The decisions made at EAPCE’25 will shape East Africa’s energy landscape for generations to come.
