Understanding the Lay of the Land: An Institutional Analysis of Petro-Governance in Tanzania

Tanzania has recently discovered large petroleum reserves, boosting its reserve natural resource stocks and potential future revenue flows. What is the likelihood that the country’s petroleum resources will translate into economic development? The answer to this question will largely be determined by the quality of the institutions the government adopts to govern the petroleum sector, to include the legal institutions. This study reviews the most important provisions of the new legislative framework that the government has put into place to govern this newfound wealth. We examine the institutions and actors created by the legislation as well as the opportunities and challenges that may emerge in its future implementation. Specifically, we analyze the petro-sector institutions that the legislation creates and the types of authorities granted to them; the institutional constraints placed on authorities; the interaction between institutions; potential institutional overlaps, conflicts, and gaps; and transparency and accountability mechanisms.