Zanzibar to Boost Energy Investment Drive with Strategic Appointment of Dr. Mohammed Al Rumhy

When you mention Mohammed Al Rumhy, many people here in Zanzibar will remember the famous Fulk Al Salamah super yatch, which docked in Zanzibar in 2017 carrying a message of peace from the late Sultan Qaboos bin Said Al Said.

In Oman, Dr. Rumy is a household name associated with significant transformation in the energy sector, especially oil and gas, which contributes more than 70% of the Omani government’s revenue.

During his tenure spanning more than 20 years at the Ministry of Minerals and Energy (MEM), he played a crucial role in transforming Oman’s energy landscape by diversifying energy sources and promoting renewable energy initiatives.

His leadership enhanced oil and gas production efficiency and sustainability, ensuring that the sector significantly contributed to the national economy while fostering a supportive environment for foreign investment.

Under his stewardship, Oman maintained oil production levels around 1 million barrels per day and significantly increased natural gas production to meet rising domestic demand. He was instrumental in advancing renewable energy initiatives, launching Oman’s first large-scale solar project, which marked a crucial step toward diversifying the energy mix.

His outstanding performance as minister and his connection to and passion for Zanzibar have undoubtedly informed the decision by the Revolutionary Government of Zanzibar to appoint him as an ‘investment ambassador’.

The Right Man at the Right Time

In a world where the right relationships and connections can pivot the destiny of nations, Dr. Rumhy emerges as the pivotal figure bridging Zanzibar and Oman.

His recent appointment as a non-paid representative for promoting investment opportunities in Zanzibar, especially in the energy sector, marks a significant chapter in Zanzibar’s investment drive.

With his extensive experience and global network, Dr. Rumhy is truly the right man at the right time, poised to harness the historical and strategic ties between the two regions to usher in a new era of prosperity.

By engaging investors from the Gulf Cooperation Council (GCC) and beyond, he is going to unlock Zanzibar’s unique investment opportunities, particularly in sustainable energy. His strategic vision is to create an ecosystem where economic growth is inclusive, benefiting both local and international stakeholders.

Building on the Existing Strong Foundation

Dr. Rumhy officially received his Letter of Appointment on October 1, 2024 during the ZIPA High-Level Business Roundtable hosted by Hon. Shariff A. Shariff, the Minister of State, President’s Office, Labor, Economic Affairs, and Investment, at W Muscat Hotel. 

His appointment draws from a wealth of experience from the position of energy minister and further deep connections within the GCC and beyond.

Dr. Rumhy is expected to build a partnership that attracts investment opportunities across the energy sector via engagements with potential investors and key stakeholders across the world.

In the appointment letter, Mr. Shariff underlined the fact that Zanzibar stands to benefit a lot from his expertise: “His experience and global relationships will enhance our efforts to attract investors and foster partnerships so important to realizing our development goals.”

Dr. Rumhy has been mandated to represent Zanzibar at international investment forums in promoting the islands as a strategic destination for energy investments in East Africa.

The Minister further assured Dr. Rumhy that he has a solid foundation to build on. He reiterated that the Zanzibar government has taken steps to improve the investment climate and the promulgation of the Zanzibar Investment Act, 2023 has enhanced both investment protection and incentives.

He highlighted the special and historical connections between the two nations and implored both sides to summon these connections to increase trade and investment with the view of securing a shared prosperity. “To date, we have registered 27 Omani projects in Zanzibar, worth a staggering USD 1.2 billion and creating more than 1,600 direct jobs. I have full confidence that my dear brother H.E. Dr. Rumhy’s appoint will usher our cooperation to new heights” said Hon. Minister Shariff.

Zanzibar Hydrocarbon Potential 

The energy sector in Zanzibar has been developing over the years at a high rate; hence, oil and gas exploration has become its main focus. In October 2018, the government inked its first production-sharing agreement (PSA) with RAKGAS of Ras al Khaimah for exploration in the Pemba-Zanzibar Block.

RAKGAS commissioned extensive geological surveys, including a Full Tensor Gravity Survey and a 2D Seismic Survey. These provided vital data with respect to the potential of hydrocarbon reserves in the region. This seismic survey crossed offshore, onshore, and transition zones, representing another major work milestone, with about 3,776 kilometers covered.

Following these developments, Zanzibar launched the first licensing round on 20th March 2024, inviting international oil companies to bid for eight new offshore blocks.

It is expected that this would attract foreign investment in the hydrocarbon industry and enhance capacity for local management of oil and gas resources. Through such developments, Zanzibar is positioning itself as an energy investment destination, supported by a sound legal framework established under the Oil and Gas Upstream Act No. 6 of 2016.

Buoyed by this advancement, the government has announced the opening of two new blocks, namely Z1 and Z2, to exploration and investment effective September 27, 2024.

Given the above progress and the ever-growing demand not just for energy, but cleaner energy, it is fair to say that Dr. Rumhy’s appointment is very timely and it is anticipated that his expertise and connections will help attract the right investment in both conventional and renewable energy ventures to Zanzibar, stimulate growth and ensure energy security.

Towards a Mixed Future

Amid the cries for more energy comes the heated debate and the ever-vocal advocacy for halting explorations of fossil fuels. On one hand, there is a school of thought that takes the view of ending fossils now and on the other hand, there are those who are for setting a realistic transition to achieve a balanced energy mix.

Those calling for immediate action against fossils point to scientific findings that in order to avert worst impacts of climate change and preserve a livable planet, global temperature increase needs to be limited to 1.5 C. To keep global warming to not more than this level, emissions must be reduced by 45% by 2030 and reach net zero 2050. Against these pressing challenges is the ardent necessity of access to electricity, which remains a luxury for millions of Africans.

According to the International Energy Agency’s Africa Energy Outlook, 600 million people, or 43% of the total population lack access to electricity. The report further warns that 970 million Africans lack access to clean cooking.

Both Tanzania Mainland and Zanzibar have been taking steps and making substantial investment towards universal access to electricity and clean cooking.

The appointment of Dr. Rumhy could spur confidence and attract investment in cleaner energies. A pragmatist, Rumhy not only understands both conventional and alternative sources of energy well, but he knows where and how to strike the balance, especially for growing economies.

Our Bond is Unbreakable 

During the recent Tanzania-Oman Business Forum in Muscat, there was a constant reminder of the special connection between Zanzibar and Oman. The case in point is, H.E. Dr. Rumhy himself was born in Zanzibar and Hon. Shariff A. Shariff and all other ministers constituting his delegation have close relatives in Oman. That our bond is special and unbreakable is a settled matter.

The question both sides must endeavor to address is how can this relationship could catapult our trade and investment volumes to new heights with the view of achieving common prosperity that will bind current and future generations even closer and further.

We believe Dr. Rumhy’s appointment is a pivotal step towards that promising future of shared aspirations.

ZiBi Team