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15 YEARS OF TANSHEQ LIMITED

Celebrating 15 years of TANSHEQ LIMITED,  The future is our to build together

ESG
ESG

The Importance of Environmental, Social, and Governance (ESG) in Tanzanian Industries

Introduction

Environmental, Social, and Governance (ESG) principles have become critical for businesses worldwide. In Tanzania, the adoption of ESG frameworks is gaining momentum as industries seek to align with global sustainability standards while ensuring regulatory compliance and long-term profitability. Companies that integrate ESG into their operations benefit from enhanced reputation, reduced risks, and access to investment opportunities. However, those that neglect ESG considerations may face reputational damage, financial losses, and regulatory penalties.

Tansheq, a leading consulting firm in Tanzania, provides comprehensive ESG services to help businesses navigate these challenges. By offering expert guidance on environmental sustainability, social responsibility, and corporate governance, Tansheq enables businesses to operate responsibly while achieving their strategic goals.

Environmental Factors

Tanzania’s natural resources, including its forests, water bodies, and mineral reserves, are under increasing pressure due to industrialization, deforestation, and climate change. Companies operating in sectors such as mining, agriculture, and energy must adopt responsible environmental policies to minimize their ecological footprint.

A notable example of environmental responsibility in Tanzania is the cement industry, which is a significant contributor to carbon emissions. Companies like Twiga Cement and Tanga Cement have taken steps to reduce their carbon footprint by investing in alternative fuels and energy-efficient technologies. These efforts demonstrate how businesses can balance industrial growth with environmental sustainability.

Tansheq supports businesses in achieving environmental sustainability by conducting Environmental and Social Impact Assessments (ESIA) for industrial projects. The firm also develops carbon reduction strategies, conducts climate risk assessments, and provides sustainable resource management solutions tailored to the needs of industries operating in sensitive ecological zones.

Social Factors

A company’s relationship with its employees, communities, and customers plays a crucial role in its long-term success. Issues such as labor rights, workplace safety, diversity, and community engagement significantly influence a company’s sustainability and public perception.

One inspiring example of social impact in Tanzania is the Solar Mamas Initiative in Zanzibar. This program trains rural women as solar engineers, equipping them with the skills to install and maintain solar energy systems in off-grid communities. This initiative not only promotes clean energy adoption but also fosters gender empowerment and economic independence for women.

Tansheq assists businesses in developing and implementing Corporate Social Responsibility (CSR) programs that benefit local communities. The firm also conducts health and safety audits to improve workplace conditions and reduce accidents. Furthermore, Tansheq facilitates stakeholder engagement and community consultations to ensure that industrial projects consider the needs and concerns of affected communities.

Governance Factors

Strong corporate governance structures are essential for ensuring transparency, accountability, and ethical decision-making. Companies that lack effective governance policies risk exposure to corruption, financial mismanagement, and reputational damage.

The Bank of Tanzania has been proactive in strengthening corporate governance within the banking sector by mandating improved risk management and anti-corruption measures. These reforms have enhanced financial stability and investor confidence in the country’s banking institutions.

Tansheq provides businesses with corporate governance frameworks that align with both Tanzanian and international standards. The firm conducts ESG compliance audits to help companies meet regulatory requirements and trains executives and management teams on ethical leadership and anti-corruption strategies. Through these services, Tansheq empowers businesses to operate with integrity and maintain stakeholder trust.

Challenges and Opportunities in ESG Adoption

Despite the benefits of ESG adoption, businesses in Tanzania face several challenges. One major challenge is regulatory uncertainty, as many companies struggle to keep up with evolving ESG laws and standards. Financial constraints also hinder ESG implementation, as some businesses perceive sustainability initiatives as costly investments. Additionally, resistance to change remains a barrier, with many organizations lacking awareness of ESG benefits or hesitating to adopt new policies.

However, the growing emphasis on ESG presents numerous opportunities for businesses in Tanzania. Companies that align with ESG principles are more likely to attract investment from international financial institutions and socially responsible investors. Additionally, ESG-compliant businesses gain a competitive advantage by building trust with customers, regulators, and other stakeholders. Implementing sustainable practices can also lead to long-term cost savings through energy efficiency, waste reduction, and improved resource management.

Conclusion

As Tanzania moves toward a more sustainable economy, ESG compliance is no longer optional—it is a necessity. Companies that integrate environmental, social, and governance factors into their business models will be better positioned for growth and resilience in an increasingly competitive and regulated market.

Tansheq is at the forefront of ESG consulting in Tanzania, helping businesses navigate the complexities of sustainability and corporate responsibility. By providing expert guidance on environmental management, social impact assessments, and governance frameworks, Tansheq ensures that businesses not only comply with regulatory requirements but also contribute positively to society and the environment.

For companies looking to enhance their ESG performance, partnering with Tansheq is the first step toward building a sustainable and responsible enterprise.

SOURCE BY: Tansheq Limited

 

Tansheq Limited Achieves Approval for Local Content Plan by the Mining Commission

Tansheq Limited Achieves Approval for Local Content Plan by the Mining Commission

We are thrilled to announce that Tansheq Limited has received official approval for our Local Content Plan from the Mining Commission under the Ministry of Minerals of Tanzania. This milestone reflects our unwavering commitment to supporting Tanzania's local industries and communities in alignment with the Mining (Local Content) Regulations, 2018.

This approval is a testament to our dedication to fostering partnerships that prioritize local talent, suppliers, and resources. It underscores our role as a responsible partner in Tanzania's development. As stipulated, the approved plan will be implemented effectively and monitored through quarterly reports and annual Local Content Performance Reports, ensuring compliance and transparency.

At Tansheq, we are proud to contribute to the sustainable growth of the mining sector while upholding the regulations that safeguard local participation and national development goals. Together, we are building a brighter, more inclusive future for Tanzania.

For inquiries or partnerships, contact us at

Understanding Tanzania’s Environmental Performance Bond Regulations

The Environmental Management (Environmental Performance Bond) Regulations of 2024, introduced under Tanzania’s Environmental Management Act, provide a robust framework to ensure responsible environmental stewardship across numerous sectors. These regulations require developers to deposit an Environmental Performance Bond (EPB) as a financial guarantee for responsible project closure, site rehabilitation, and ecosystem restoration. By mandating these bonds, the regulations aim to secure compliance with environmental standards, promote sustainable practices, and mitigate potential adverse impacts from large-scale projects.

Under these regulations, developers across various sectors are required to prepare detailed decommissioning plans that address site-specific risks, impact assessments, and closure methodologies. These decommissioning plans must include clear strategies for ecosystem restoration, risk management, post-closure monitoring, and emergency closure if needed. Registered environmental experts are responsible for preparing these plans, ensuring they meet stringent environmental standards and align with the unique characteristics of each project. The National Environment Management Council (NEMC), along with the Project Decommissioning Committee, oversees the approval of these plans, conducts regular reassessments of the bond, and ensures that developers adhere to the guidelines throughout the project lifecycle.

The First Schedule of the EPB regulations outlines specific sectors and project types required to deposit an EPB. In the Agriculture, Forestry, and Fisheries sectors, large-scale agricultural developments, commercial forestry operations, and fisheries projects such as aquaculture and artificial farming fall under these guidelines. The Energy sector, covering oil and gas exploration, large renewable energy installations, and hydroelectric power plants, also faces EPB requirements to mitigate environmental risks inherent to these high-impact projects. The Manufacturing and Processing sector includes chemical plants, cement factories, textile industries, and food processing plants, all of which pose unique environmental challenges that must be managed responsibly.

Additionally, the Mining and Quarrying sector, encompassing large-scale mining operations and quarrying activities, must ensure the safe closure of sites and restoration of affected land areas. Infrastructure Development projects like highways, railways, and port facilities are also included, given their potential to disrupt natural ecosystems and local communities. For Waste Management projects, such as landfills, hazardous waste treatment, and incineration facilities, the EPB ensures that these facilities operate within strict environmental guidelines and address post-closure impacts effectively.

Other sectors specified in the First Schedule include Water Resources Development for large-scale irrigation and dam projects, and Tourism and Recreational Development, which covers environmentally sensitive projects like hotels near protected areas, golf courses, and theme parks. The Real Estate Development sector, specifically large housing estates and commercial complexes, is also subject to these regulations to safeguard urban ecosystems. Transportationprojects, such as airports and bus terminals, Telecommunications towers and data centers, and Health Facilitiesincluding hospitals and medical waste treatment facilities, all require careful environmental planning and EPBs to mitigate risks associated with their operations and closures.

The Environmental Performance Bond Regulations provide for confiscation of the bond in cases of non-compliance, ensuring that funds are available to restore affected environments should a developer fail to meet regulatory standards. Conversely, developers who adhere to approved decommissioning and monitoring protocols are eligible for a return of their bond, thereby incentivizing compliance and promoting long-term environmental responsibility. These regulations are designed not only to enforce environmental standards but to encourage industries to integrate sustainable practices from project inception through to closure, fostering a culture of environmental accountability across Tanzania’s industrial landscape.

At Tansheq, we recognize the importance of these regulations and are committed to helping businesses understand and meet these environmental requirements. Our team assists developers in preparing and implementing their decommissioning plans, conducting risk assessments, and ensuring compliance with the EPB regulations. By working together, we can build a more sustainable future for Tanzania, promoting economic growth while protecting the country’s natural resources and ecosystems for generations to come. For further guidance on how Tansheq can support your compliance with these regulations, please reach out to us through contacts in our website.

New Environmental Compliance Fees for Oil and Gas Sector: 2021 vs. 2024

New Environmental Compliance Fees for Oil and Gas Sector: 2021 vs. 2024

In an effort to strengthen environmental management in Tanzania, the government introduced key updates to the Environmental Management (Fees and Charges) Regulations in 2024. These changes affect various industries, including oil and gas, which now face new and increased fees for compliance monitoring and audit. Below is a comprehensive overview of the fees applicable to the oil and gas sector, comparing the 2021 regulations with the 2024 amendments.

Key Fee Changes in the Oil and Gas Sector

The following table outlines the applicable fees for different activities within the oil and gas industry:

Category

2021 Fees (TZS)

2024 Fees (TZS)

Remarks

Exploration License

Not specified

100,000,000 per year

🆕 New fee introduced

Oil and Gas Field Exploration

3,000,000

3,000,000

No change

Oil and Gas Field Development

10,500,000

10,500,000

No change

Environmental Fee for Off Production Well

Not specified

10,000,000

🆕 New fee introduced

Environmental Fee for Production Well

Not specified

50,000,000

🆕 New fee introduced

Processing Facility/Plant

10,500,000

50,000,000

⬆️ Increased

Handling and Storage

10,500,000

10,500,000

No change

Gathering Pipeline

Not specified

10,000 per km

🆕 New fee introduced

Transmission/Transportation Pipeline

20,500,000

50,000 per km

⬆️ Changed to per km fee

Distribution Pipelines

Not specified

30,000 per km

🆕 New fee introduced

Service Pipelines

Not specified

20,000 per km

🆕 New fee introduced

Offshore and Onshore Pipeline

20,500,000

Not applicable

Replaced by per km fees

Oil and Gas Separation, Processing, Handling, and Storage

10,500,000

10,500,000

No change

Oil Refineries

10,500,000

10,500,000

No change

Product Depots for Storage of Petroleum Products

4,500,000

4,500,000

No change

Transportation of Petroleum Products (Companies)

500,000

500,000

No change

Fuel Filling Station

200,000

200,000

No change

Service Fuel Filling Station

250,000

250,000

No change

Key Insights:

  • New Fees Introduced: Several new fees have been introduced in 2024, particularly for environmental compliance related to wells and pipelines. For example, off-production wells now face a TZS 10,000,000 fee, while production wells are subject to a TZS 50,000,000 fee.
  • Significant Fee Increases: The fee for exploration licenses has increased to TZS 100,000,000 per year, up from no specified amount in the 2021 regulations. Additionally, processing facility fees have increased significantly from TZS 10,500,000 to TZS 50,000,000.
  • Pipeline Fees Restructured: Instead of a flat fee, the 2024 regulations introduced per-kilometer fees for gathering, transmission, distribution, and service pipelines, making costs more dynamic depending on the length of the infrastructure.

What These Changes Mean for Oil and Gas Companies

These updated fees place greater financial responsibility on oil and gas operators in Tanzania, particularly in areas related to environmental compliance. Companies must now account for the increased costs during the exploration, development, and production phases of oil and gas operations. Proper environmental monitoring and audit strategies will be crucial to maintaining regulatory compliance and avoiding penalties.

This also presents an opportunity for companies to review their operational budgets and plan ahead for these new financial obligations.

About Tansheq: Your Partner in Environmental Compliance

Tansheq, a leading engineering and environmental consulting firm in Tanzania, specializes in helping oil and gas companies navigate complex regulatory landscapes. With extensive experience in the energy sector, Tansheq offers comprehensive services designed to ensure compliance with the latest environmental regulations, including:

  • Environmental Impact Assessments (EIA): Assisting with the preparation and submission of EIA reports, ensuring adherence to national and international standards.
  • Environmental Compliance Monitoring and Audit: Offering ongoing monitoring services to help companies meet the new environmental compliance fees and regulations.
  • Pipeline Infrastructure Consulting: Providing technical expertise in pipeline construction and management, ensuring that all infrastructure meets environmental and safety standards.
  • Permitting and Licensing Support: Helping businesses navigate the process of obtaining necessary exploration licenses and environmental permits, minimizing delays and ensuring smooth operations.

With the recent changes in the regulatory framework, Tansheq is committed to supporting the oil and gas sector in meeting their environmental obligations while driving sustainable growth. Whether you need assistance with compliance audits, pipeline management, or environmental impact assessments, Tansheq is your trusted partner for engineering solutions.

Contact us today to find out how we can help your business stay compliant with the latest environmental regulations while optimizing your operations for success.

 

THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA, DR. SAMIA SULUHU HASSAN, HAS LAID THE FOUNDATION STONE FOR THE CONSTRUCTION OF THE RUKWA REGION GIRLS' SECONDARY SCHOOL

The President of the United Republic of Tanzania, Dr. Samia Suluhu Hassan, has laid the foundation stone for the construction of the Rukwa Region Girls' Secondary School at a ceremony held in Mtindilo Laela Village on July 17, 2024. This school is one of 26 girls' secondary schools planned for construction across mainland Tanzania as part of the Secondary Education Quality Improvement Project (SEQUIP). Tansheq played a crucial role in reviewing the designs to ensure accessibility for people with disabilities, as well as conducting Environmental and Social Impact Assessments (ESIA) and overseeing construction supervision.

DKT. YONAZI AZITAKA DMG NA TANSHEQ KUTEKELEZA KWA WAKATI UPEMBUZI YAKINIFU WA UNUNUZI WA MELI ZA UVUVI BAHARI KUU

Katibu Mkuu Ofisi ya Waziri Mkuu (Sera,Bunge na Uratibu) Dkt. Jim Yonazi amewataka wataalamu waelekezi kutoka Kamapuni za DMG na TANSHEQ walioshinda zabuni ya Mkataba wa Upembuzi Yakinifu wa Ununuzi wa Meli za uvuvi wa Bahari Kuu na Ujenzi wa Viwanda vya Kuchakata Samaki,kukamilisha upembuzi kwa wakati ili Serikali ianze ujenzi wa meli katika Bahari Kuu na Viwanda vya kuchakata samaki.

 

CEO wa Tansheq Limited (Lusako Raphael Mwanjali) na Katibu Mkuu Mh. Jim Yonazi wakitia saini ya mkataba

CEO wa Tansheq Limited (Lusako Raphael Mwanjali) na Katibu Mkuu Mh. Jim Yonazi wakitia saini ya mkataba wa kufanya Thathimini ya Athari za Kimazingira na Kijamii kwa ajili ya ununuzi wa meli za uvuvi zitakazotumika Zanzibar na Tanzania Bara

HAPPY 13TH ANNIVERSARY TO TANSHEQ LIMITED

HAPPY 13TH ANNIVERSARY TO TANSHEQ LIMITED

As we mark our 13th anniversary, Tansheq Management would like to thank all of our clients, partners, and employees. We also want to reassure you that we will continue to offer Innovative Solutions for Sustainability

Seismic Vibrator Truck (Vibroseis) for Land Seismic Survey for Oil and Gas Exploration

TANZANIA EXPERIENCE OF VALUATION AND COMPENSATION IN OIL AND GAS SEISMIC SURVEY

An onshore seismic survey is a geophysical method used to study the subsurface structure of the Earth to locate and evaluate subsurface geological features, such as oil and gas reservoirs. The objective of an onshore seismic survey is to generate a detailed image of the subsurface, which can be used to identify potential locations for the