Africa urged to harness gas for industrial growth

DAR ES SALAAM: African countries have been urged to transform their approach to natural gas by using the resource to power industries, create jobs, and drive economic growth instead of exporting it in raw form. Ministers from Mozambique, Nigeria, and Senegal made this call during the opening of the Africa50 General Shareholders’ Meeting and Infra for Africa Forum in Dar es Salaam, where leaders discussed leveraging Africa’s natural resources for sustainable development. Exporting raw natural gas has limited Africa’s industrial growth, leaving the continent dependent on imported finished products and missing opportunities for job creation, skills development, and technology transfer. Tanzania is particularly focused on using its natural gas reserves for industrialization through value addition, electricity generation, and manufacturing. Mozambique’s Minister for Finance, Ms Carla Loveira, emphasized that Africa must move away from a model where natural wealth is extracted and exported without processing. Despite abundant natural gas, Africa remains a small player in global industrial trade because much of its raw materials are processed outside the continent. Africa accounts for only 1.6% of industrial goods traded globally, and this pattern must change. Ms Loveira noted that the value of Africa’s natural gas should be measured not only by extraction but also by job creation, skill-building, innovation, and economic transformation. Mozambique has introduced measures to ensure revenues from its growing Liquefied Natural Gas (LNG) sector directly contribute to national development. Under the Sovereign Wealth Fund framework, 40% of LNG revenues will be saved for future economic stability, while 60% will be invested in industrialization projects, including power infrastructure, industrial parks, and transport networks. Mozambique expects LNG production capacity to increase from 3.4 million tonnes annually to 38 million tonnes by 2028. Nigeria also highlighted a shift in its energy strategy, prioritizing domestic use of natural gas to support industries and improve electricity access. Despite having Africa’s largest natural gas reserves, Nigeria previously focused on exporting the resource, leading to energy shortages in many industries. Under President Bola Ahmed Tinubu, Nigeria has adopted a ‘From Gas to Prosperity’ strategy to develop gas utilization within the country.