The November resumption of talks between Tanzania’s government and multinational corporates, on plans to develop the country’s $30bn liquefied ... natural gas (LNG) reserves, has triggered optimism that progress may finally be in sight.
The government, which sold $3bn of eurobonds in March, aimed to sell a further $1bn of debt on the international markets this year. It dropped those plans in October, citing market conditions.
The failure to access debt markets is “worrying, but not catastrophic,” says James Dzansi, an economist at the International Growth Centre in Accra. “It’s a signal to the government that it needs to explore other options.” The easiest and most prudent course would be to go to the IMF sooner rather than later, he says.