Impact of FDI oil and gas sector on poverty alleviation in the southern part of Tanzania: a case of Mtwara region

The study estimate the impact of the FDI in oil and gas sector on poverty alleviation in the southern region of Tanzania i.e. oil and gas sector in Mtwara being a case study. To achieve this specific objectives were formulated including evaluating the effect of FDI in oil and gas sector in the promotion of education, health care, employment, and development of infrastructure such as roads networks, telecommunication network i.e. mobile phone network. Through questionnaires distributed to the respondents residing Mtwara together with different written materials and documents from different foreign investors in oil and gas data collected were analyzed both qualitatively and quantitatively , The results of the findings indicate that there is the positive impact of FDI in oil and gas sector on the poverty alleviation in Mtwara .Through various written materials and documents from TPDC and foreign investor companies it observed that more people are aware with different contribution that was directly provided by this multinational corporation. Buildings of dispensaries, classrooms, dormitories, nursery school, providing scholarships for master students and construction of roads are some of the projects performed by these foreign investors operating in gas sector at Mtwara. As much as the study is concerned, FDI contributed positively in poverty reduction in general. In term of employment creation, many jobless resident of Mtwara had an opportunity to work in oil& gas field. In term of Health sectors, several dispensaries constructed in Mtwara. In term of education, FDI sponsored many student to master degree and constructed classroom and dormitories to various primary and secondary school in Mtwara. In term of infrastructure, Mtwara municipal has changed, road network has increased, and telecommunication network has increased and more hotels and others building construction has increased. Lastly, the study recommends that the government should make sure that social service provided by government agencies and authorities should go hand with handwith the economic development caused by investors in oil and gas direct and indirect in order reduce the cost of living in terms of food, housing and medication. Also the Government should sensitize communities especially those residing around gas field about the contribution of gas sector in the economy as whole in Tanzania in order to provide good collaboration to the foreign investors and avoid enmity and demonstration as previously in 2013.