Tanzania Oil and Gas Fund (Natural Gas Revenue Fund)

At a glance. Tanzania's Oil and Gas Fund, also called the Natural Gas Revenue Fund, was set up by a 2015 Act to manage petroleum revenue through a holding account and a saving account at the Bank of Tanzania. The state auditor reported a balance of TZS 190.94 billion in mid 2020 and said the fund had not yet invested, because revenue had not reached the 3 percent of GDP trigger for savings. S1 S3

Key points

• Two accounts at the Bank of Tanzania: a Revenue Holding Account and a Revenue Saving Account. S1
• Balance of TZS 190.94 billion, 0.14 percent of GDP, at 30 June 2020. S3
• Savings start once oil and gas revenue reaches 3 percent of GDP; the non-resource deficit is capped at 3 percent. S1
• 0.1 percent of GDP a year is ring-fenced for National Oil Company strategic investment. S1
• A five-member Portfolio Investment Advisory Board, appointed by the President, advises on saving account strategy. S1

Interesting facts

• The Act bars the Fund from lending to anyone or serving as collateral. S1
• Suspending the fiscal rules for a major investment needs a two-thirds vote of the National Assembly. S1
• The state auditor is required to audit Fund reports every quarter. S1

Mandate and goals

The Act aims to keep fiscal and macroeconomic stability, secure financing for oil and gas investment, support development and save resources for future generations. S1

• Finance the budget within fiscal rules. S1
• Fund National Oil Company investment. S1
• Save surplus revenue for future generations. S1

How it invests

Past investments

The fund has not published a list of investments.

Investment process

The Minister for finance sets strategy on the Board's advice; if the Minister declines, the President decides. The Bank of Tanzania implements it. S1

1. All revenue goes to the Revenue Holding Account. S1
2. Amounts above the trigger move to the Revenue Saving Account. S1
3. Accounts are audited and laid before the National Assembly. S1

How to approach: No approach route while the fund is not investing. S1

Size and returns

• Headline size: TZS 190.94B (Fund market value, as of 2021-03-28) S3
• In US dollars: about USD 0.083B. Approximate USD conversion of the audited balance at 30 June 2020
• Returns: the fund does not publish a return figure.

Leadership

The fund does not publish named leaders.

Governance and transparency

• Legal basis: Oil and Gas Revenues Management Act, Cap. 328 S1
• Oversight: Minister for finance, National Assembly and the Controller and Auditor General S1
• Quarterly reports by the Board and the Governor to the Minister. S1
• The state auditor noted that regulations had not been made by 2021. S3

Transparency score: 2.5 of 10 (band 2 of 5). Our own 10-item rubric; see the methodology page.

• Published: governance and mandate documents. S1
• Partly published: total assets, audited financial statements, named leadership. S1 S3
• Not published: annual return, long-term returns, asset allocation, geographic or sector split, holdings or deal list, regular reporting schedule. S3

History

Reports

• CAG Annual General Report on Public Authorities 2019/20: https://www.nao.go.tz/uploads/Annual_General_Report_on_the_Audit_of_Public_Authorities_2019_20.pdf S3

Common questions

Is the fund investing?

Not at the last published audit; the savings trigger had not been reached. S3

Who manages it?

The Bank of Tanzania, with the Paymaster General as accounting officer. S1

How large is it?

TZS 190.94 billion at 30 June 2020. S3

Related profiles

• Eswatini Sovereign Wealth Fund Eswatini · E5B planned (about USD 275M)
• Botswana Sovereign Wealth Fund (BSWF) Botswana · Not yet capitalised
• Fonds Souverain de Guinee (proposed) Guinea · Not yet capitalised
• Kenya Sovereign Wealth Fund Kenya · Not disclosed
• Lagos State Wealth Fund Nigeria (Lagos State) · Not created
• South Africa Sovereign Wealth Fund (proposed) South Africa · Not established, estimate

All sovereign wealth funds in Africa · All proposed or pipeline funds · All funds in Tanzania

Sources

1. S1Oil and Gas Revenues Management Act, Cap. 328 (Act No. 22 of 2015)
2. S2IFSWF, Our members
3. S3Controller and Auditor General, Annual General Report on Public Authorities 2019/20