Tanga. The Prime Minister, Dr Mwigulu Nchemba, has issued a stern warning to dishonest investors establishing fraudulent local companies.
These entities claim indigenous status while remaining foreign-owned to exploit Local Content opportunities.
“Any firm discovered using these tactics will be permanently banned from operating within Tanzania,” Dr Nchemba said.
He delivered these remarks on February 16, 2026, following an inspection of the East African Crude Oil Pipeline (EACOP) project in Tanga.
The Prime Minister noted that certain foreign investors are using Tanzanian citizens as fronts.
These individuals provide local addresses and names without receiving any actual benefits from the business.
Dr Nchemba described this practice as a direct theft of opportunities intended for the empowerment of Tanzanian citizens.
He emphasised that the government aims to uplift genuine local companies through these strategic project allocations.
Strict measures will also be taken against project supervisors who facilitate or overlook such deception.
Dr Nchemba warned that officials tasked with monitoring local content will be held accountable if they allow these fraudulent schemes to persist.
He asserted that complicity in these acts is equivalent to defrauding the nation.
The government expects every stakeholder to ensure that the designated portion of major projects remains of direct benefit to Tanzanians.
Regarding the EACOP project itself, Dr Nchemba expressed high satisfaction with the current progress.
The $5.65 billion strategic infrastructure project is now 81 per cent complete.
He noted that the pipeline serves as a significant symbol of the brotherhood between Tanzania and Uganda.
The Prime Minister credited the strong leadership of President Samia Suluhu Hassan and President Yoweri Kaguta Museveni for the project’s success.
Meanwhile, the Deputy Minister for Energy, Judith Kapinga, revealed that the government has already collected over Sh70 billion through various levies, fees, and taxes from the EACOP implementation.
Revenue is expected to soar to over Sh2.3 trillion once the project enters its operational phase.
The project, which commenced in 2022, involves the construction of a 1,443-kilometre pipeline alongside essential infrastructure such as storage tanks and a loading jetty.
The Tanzanian government has contributed $374 million to the project, representing a 15 per cent shareholding stake.
Significant economic impacts are already visible within the domestic sector.
Over 200 Tanzanian companies have secured tenders for goods and services valued at more than Sh1.325 trillion.
Additionally, 304 kilometres of roads have been upgraded to facilitate construction and stimulate local economic growth.
Employment remains a critical component of the project’s success, having generated 10,000 jobs during the construction phase.
Approximately 7,500 of these positions have benefited Tanzanians with low to medium skills.
A further 2,500 roles have been filled by Tanzanian professionals in specialised fields such as engineering, plant construction, and environmental management.
