Tanzanians to be engaged in Mega Strategic Development Projects

On 19th October 2020, The Association of Oil and Gas Service Providers (ATOGS) signed a Memorandum of Understanding (MoU) with RentCo Africa to provide financial and assets support to local contractors and companies to enable them participate well in strategic projects.

ATOGS Chairman, Abdulsamad Abdulrahim signing an MoU with RentCo Tanzania Director, Regina Mwengi

The agreement will support companies and business communities waiting to enter into various mega projects including logistics, infrastructure, construction, security, facility management and oil and gas projects.

Speaking during the stakeholders’ workshop held in Dar-es salaam, ATOGS chairman Abdulsamad Abdulrahim hailed the move as it will help investors not to think of spending millions of money to buy new equipment as they will be accessing them by borrowing the required equipment/assets at low costs. He noted that for many years local companies have been decrying over low access to funds, a situation which has also affected participation of the companies in the country’s mega projects. Majority of investors in the country have been facing challenges to access quality equipment or material goods which will enable them to participate well in major projects. We have a lot of mega projects in the country, but the participation of locals has remained low, this is contributed by several challenges including the access to finance, so this MoU is going to address them. Our aim is to see more Tanzanians participating in mega strategic projects, he said.

Hon. Abdulsamad Abdulrahim, ATOGS Chairman

ATOGS-RentCo agreement will support local companies with equipment needed to implement any project which include construction equipment, security and others. It urges key implementing companies of various mega-projects to uphold openness and transparency in tenders and basic information for Tanzanians to be well informed on the projects.

ATOGS Chairman conveyed that, transparency and information were among major powerful tools to enable more Tanzanians secure jobs in the projects. Under local content provisions in the Petroleum Act of 2015, Tanzanians have an advantage in acquiring local contracts. Local suppliers and business community have demonstrated capacity and redness to deliver most of the series and projects both technical and non-technical that will be required in various projects services, logistics and indirect series, security series, catering and emergence series. All they need is affordable finance and access to leasing options, he said.
For her pert, Regina Mwengi, director of RentCo Tanzania said the firm is there to support investors with various assets needed to implement project. So if an investor wants to participate in certain projects and doesn’t have supporting equipment, has nothing to worry because RentCo is there to support him/her, we will enter into an agreement to enable the investor obtain, use the equipment and later returning it.

The CRDB Senior Manager, Focus Mrosso said that doors are open for anyone who seeks financial support to implement various projects. He added that the bank has for years been supporting locals to enable them to implement their projects smoothly for country’s development.