How To Start Solar Power Business in Tanzania—-Complete Guide
In Tanzania as emerging market there are huge market for solar power business.
To be completely transparent, the reliable and affordable power supply is the biggest problem in Tanzania. With this mobile phone revolution in Tanzania.
Many people have a mobile phone but, they should walk long distance to charge their mobile phone. As I write this article at night, I am using power from the solar panel to run my laptop.
With the biggest power supply problem in Tanzania, Some small shops specifically in rural areas close so early because they don’t have electricity.
What if you start your solar business in Tanzania and help this people operate till night while you make big cash in return.
From business perspective, the business that depends on people’s need will grow by leap and bound. That’s why starting your own solar business is the wise decision.
Solar power is business for everybody, even if you don’t have a cent in your pocket right now, read this article all the way to the end and you will realize how easily solar power can be done in Tanzania.
Tanzania power supply is the substantial challenge
The market for this business seems to be endless in Tanzania because of serious electricity problem in our country.
Imagine this, Tanzanian population is approximately 50 millions. But only 42 percent of households have access to electricity with a wide gap, 40 percent in urban and only 2 percent of rural household have access to electricity.
According to the recently published report of Africa progress Panel that Kofi Annan a former Secretary-General of United nation is the chair of such panel reveals that, It would take average Tanzanian 8 years as much as electricity average American consumes in one month.
Even our government is selling this idea to people. Government wants all the health center dispensaries that are not connected to the grid country wide to be provided with solar power.
Also to make this more attractive option and affordable to citizens, the government has removed value added tax (VAT) and remove import tax to all solar components, so is the best time to start the business because when government now comes in, they will look for YOU
Why Solar Power Is The profitable business in Tanzania
In reality solar will remain to be lucrative business in Tanzania even in bad economy because of the following reasons
1.The Rising demand for electricity
The rising demand for electricity in Tanzania is growing at alarming rates, because of the increase in population, industrialization, and booming extractives activities of mineral and natural gas.
Tanzania’s total installation capacity is 1583 Megawatts, and the electrification rate is 15.5 percent a year, Tanzania aims to boost power generation capacity to 10,000 megawatts by 2025.
In reality, The transmission line will never cover many areas in our country. So the cheap, efficient solar electrification plan should be introduced to lift Tanzanian from the darkness in the short period of time. That’s where you come in with your solar business and grabs this opportunity in Tanzania.
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2.Solar power is the cost-effective plan and can reach many Tanzanian population in short amount of time
Technically speaking, Many rural household population spend more money in purchasing fuel like Charcoal, kerosene, diesel, as the many Tanzanian own mobile phones and they use it in regular basis for business purpose, to chat with friends, family, ,
But you they can save a lot of money because once the solar power unit is set up you can enjoy free electricity for a very long time.
3.The desire to clean energy that are environment friendly
In reality, most people still depend on the expensive and hazardous fuel such as diesel, Tanzania rural population relies on kerosene, firewood a charcoal which pollutes household air.
So unlikely fuels like Kerosene, firewood, solar electricity prove to be better options.It causes no pollution and doesn’t harm environment.
Three Ways To Start Solar Power Business In Tanzania And Make Money
Anybody can start a solar business. Since there are multiple ways you can enter the solar market in Tanzania.
1.Become Solar Power Companies Associate In Tanzania
If you are keen to make Tanzanian go to solar but you have nothing to invest in this business, associate with solar companies is the way to go.
So you will introduce the solar products of the company you present to the customers and get a commission for each purchase being made.
The good news is you don’t have to be a veteran technician to go into this business, even if you’ve little knowledge about solar power, the company you present its products will give you all information to sell solar power solutions to people.
So approach solar power companies in Tanzania and get paid based on your agreement. To make more money, pick reputable companies that have quality solar products that customer will be confident to buy.
2.Become distributor
There a lot of manufacturer of solar products such as panel, solar batteries, charge controller and solar inverters, To go to this avenue it requires large start up capital, because you will need to import solar related items from major manufacturers abroad to Tanzania.
China is the among of greatest manufacture of solar products, you can buy direct from manufacture and resell products in Tanzania
3 Sell solar products
You buy solar related products from distributor and you resell them to final users. In this type of business model you don’t keep a stock because you buy small quantity of solar items. It doesn’t require large start up capital to get started. You can start with the amount you’re comfortable with, and grow your business day by day.
4 Become a solar a contractor
Your job will be installing solar power systems for homes, firms or business or even government agencies.
Also solar contractor earns money by doing maintenance on the solar system. Solar items last longer but repair and maintenance are vital after sometimes
Tips To Succeed In This Business In Tanzania.
Figure who will exactly Buy from You
Target the right customer is vital in the success of any business. In the solar power business in Tanzania, you can have 3 groups of customer. Here I will explain each one and you will find your fit
- Tanzanian rural populations who have no access to electricity
- Tanzanians who already connected to the grid but they’re unhappy with frequently cut off electricity that ruin their business and want to cut the cost of high electricity bills. Many cement industries in Tanzania want to reduce operation cost. So they will opt for cheap solar power supply.
- Government agencies and NGO
These 3 groups of customer are happy to buy from because solar power saves them a lot of money and makes their life easier and fun.
Solar business will survive even in the recession or bad economy when every business goes into bankruptcy. Because nobody wants to stay in darkness, Nobody wants to walk longer distance to charge their mobile phones.
Can you do a favor? If you have any questions/suggestion shoot me an email at Hussein.boffu@tanzaniapetroleum.com. or +255655376543
And I will be glad to answer you
