Assessing the possible impact of extractive industries transparency initiative (EITI) implementation on Tanzanian oil and gas sectors investment climate

The Extractive Industries Transparency Initiative (EITI) was launched to bring to light the activities in the petroleum chain to help solve the resource curse phenomenon. Yet, there are disagreements about the investment climate impact of EITI implementation and less data to provide conclusion. The dissertation focuses on the assessment of the possible impact of EITI implementation on the Tanzanian Oil and Gas (OG) investment climate. A review of the OG information disclosed by Tanzanian EITI and exploration of ways to enhance Tanzanian Oil and Gas sector investment climate through transparency is also examined. The research method adopted was qualitative using semi-structured interviews with Tanzania Extractive Industry Transparency Initiative stakeholders. The findings of this research indicate that, Tanzanian EITI is disclosing OG information and which helps companies in planning for their investments, ensure fair competition and fair contractual terms, ensure government's commitment to good governance, build stronger stakeholder's trust, help in improvement of company- community relations, assist in reducing tensions and help in altering negative public perception about OG investments. The main conclusions drawn from this research were that EITI implementation in Tanzania helps improve the investment climate of the Tanzanian OG sector when there is high government commitment, level of stakeholders' engagement is high and public accountability is stronger. This research recommends extensive public outreach campaigns and more disclosures about the OG total investments, commercial contracts, social expenditures, licence allocations and revenue spending.