Table of Contents
Key Points
- Aziz warns Tanzania risks long-term dependence if local investors are sidelined in public-funded and infrastructure-driven development projects.
- He advocates joint ventures in infrastructure and urges domestic preference in government tenders to grow local industrial capacity.
- Offshore gas extraction should allow foreign input, but other sectors must prioritize Tanzanian firms where technical capability exists.
Tanzanian billionaire Rostam Aziz has urged the government to prioritize local investors in national development efforts, warning that excessive dependence on foreign capital could weaken the country’s long-term economic sovereignty.
His remarks come days after a Kenyan court cleared the way for his $130.5 million gas terminal project in Mombasa, a major win that underscores his growing footprint in East Africa’s energy landscape.
In a recent interview, Aziz emphasized that while foreign direct investment is essential—especially in capital-heavy sectors like offshore gas exploration—true nation-building depends on empowering domestic firms. “Every country needs foreign investors,” he said, “but real nation-building happens when local investors are given priority.”
Push for sector-specific investment policies
Aziz pointed to global models where governments reserve certain sectors for local businesses, while allowing joint ventures or foreign ownership in others. He called on Tanzanian policymakers to adopt similarly structured frameworks, particularly for future megaprojects.
Highlighting the proposed offshore natural gas initiative, he acknowledged the need for international expertise due to its complexity—located 100 kilometers offshore and 10 kilometers below sea level. “No Tanzanian company can handle that level of extraction today,” he said. “In such cases, foreign capital is necessary in the national interest.”
Domestic preference in public contracts
For less technically demanding infrastructure projects, Aziz advocated for joint ventures and stronger participation by Tanzanian firms. He also called for public tenders—especially those funded with taxpayer money—to favor local contractors. “If we don't prioritise our own investors, we risk watching all the money leave the country,” he warned. “Public funds must circulate locally to build stronger companies that can compete globally.”
Aziz urged policymakers to design deliberate frameworks that give Tanzanian investors preferential treatment in areas where local capacity exists, adding that such strategies would help grow domestic capital and reduce future dependency on foreign firms.
Championing economic self-reliance through local ownership
Tanzanian billionaire Rostam Aziz, named the country’s first dollar billionaire by Forbes in 2013, is steadily cementing his influence in Kenya’s energy sector. As the founder of Taifa Group, Aziz has built a business empire spanning energy, telecommunications, logistics, agriculture, and more, positioning himself as a central figure in East Africa’s private sector.
The billionaire concluded by stating that the issue requires strategic foresight. “This issue needs to be examined carefully and planned wisely,” he said. Aziz’s comments come amid rising debate over how best to balance foreign participation in Tanzania’s economic growth while fostering homegrown champions across key industries.
His push for local empowerment comes amid growing debate in Tanzania over the balance between foreign investment and indigenous entrepreneurship.
