Are you are businessman looking for ways to invest your money and get high rates return.
If you answer yes to either question, then, why not make money in the oil sector in Tanzania?
The reason you must put your money in the oil business is that oil is fast selling product in Tanzania.
And from the entrepreneurship perspective, a product that sells can make you a more profit.
With the high demand for oil in Tanzania and a little bit of professional knowledge about the oil industry, you can be on your way to profitable oil business In Tanzania.
So, I have gathered a list of FIVE lucrative oil business ideas that can make you a good return from a reasonable time of set up.
But before I explain to you these making money opportunities. Let discuss the two limiting beliefs around oil business, preventing thousands of people from grabbing these opportunities.
The Two Shocking Truth Why Many People are not making money in oil sector
It doesn’t take rocket science to know that, oil business has made individual WEALTHY and brought huge profit to companies.
But many people have limiting beliefs that sabotage from making money in oil business. Here are non supportive beliefs around oil business preventing people from participating in the oil business.
- Oil is very risky business: Many people are misguided, they think oil business is a very risky business.
Recently a guy emailed me, claimed about the high risks associated with the oil business.
I totally agreed with his input, but you should be aware that all life is risky, starting a new business is risky, choosing a spouse is a risk, working for someone else is risky.
But avoiding any risk situations perhaps is a major risk in a life.
So instead of sitting back and whining the risk associated with entering an oil business.
You can minimize those risks by conducting a proper research on any business you want to venture into.
So ask a lot of questions before you join any new business. This will boost your chance of success.
2. Oil Business is for bigwigs only
Regardless of the high return oil business generates.
Most people don’t go into this business because they have non-supportive beliefs like oil business is only for Arab and Asian Tanzanians, oil business is only for big boys with huge financial muscle
But the good news is that oil business is for everyone.
And you don’t need your own money to start oil business, but you need to have great oil and gas business idea articulate it on a paper and persuade investors or money entities to invest in your idea.
Or you can mobilize your friends and go into partnership. Most oil men started a business with limited money.
This limiting belief In our mind holds us back from achieving great wealth in our life.
Now. we have seen, the limiting beliefs. So here are top five oil business in Tanzania
1:Start a petrol station: This is a worthwhile investment in Tanzania that ensures a solid return. But it’s capital intensive. Look, there is a thousands of car on the road and all of which need fuel
For a petrol station, you need start-up capital ranging from 450millions to 500millions. The profit margin for this business is mouth-watering. A profit is range Tzsh 100 to Tzs 210 per liter. If you sell 5,000 liters a day, you’ll be making a profit of Tzs210×5000liters= 1,050,000.
And that is the lowest profit you can make after all expenses. But if you will be sourcing oil from a wonderful major supplier who sells products at a reasonable price you’ll earn beyond. If you are keen to go in this business and you don’t have 450 to 500 million starts up.
You can start small by open a mini petrol station business with two pumps.
If you need to learn the requirement and detailed information on set up a profitable petrol station business, get your copy of my (eBook) The Complete Guide To Starting A Petrol Station In Tanzania
2:Start oil and fuel transportation business. This Another great way to make money in the oil sector. Your job is to get trucks and transport petroleum products such as diesel, petrol kerosene within Tanzania and beyond.
The funny thing about this business is that you don’t need to store or market products. You get products from the oil depots in Kurasini, You supply to customers cash your money and smile to the bank. You will charge your clients based on destination per liter.
In other words, you will make good money if you got a job to transport oil in Rwanda, Congo than someone who will transport oil in Mtwara.
The risk associated with this business is truck fall, that can be resolved by hiring an honest driver who put safety first in his driving.
Another great challenge is fire outbreak.
The truck might catch fire because petroleum products such as petrol diesel are highly flammable in nature. But get your truck registered with reputable insurance company
4.Launch lubrication oil: The market for this business is huge as the vehicle owners and factories are seriously interested in it. To help their equipment and operation run smoothly. The demand for lubricants, engine oil and base oil continue to climb at alarming rates as economies and population and emergence of wealthier middle class expand in Tanzania. According to world bank
5:Fuel importation : People are making millions of dollars annually in this business.
You can come in, And make huge cash. To make out ahead, you should have tank farm to store fuel products.
Importation of fuel is a lucrative business in Tanzania. However, a solid infrastructure, fuel depot and permit and licenses from Ewura are necessary.
Since Tanzania use bulk procurement system to import all petroleum products (Diesel, kerosene, Petrol Jet oil) so, you must be a member of Petroleum Importation Coordinator (PIC), which is the company responsible for coordinating petroleum products in the country.
Also, they prepare periodic petroleum tender to get the winner of the tender.So you will bid for the importation of oil.And the lowest bidder will be given a contract to import petroleum products.
Once you got a job to import fuel, you store in tank farm and sale to wholesalers. Petrol stations owners, a large truck will be your potential customers.
Over To You.
Among the listed opportunities mentioned above, pick one business idea you passionate about. And do your research. Gather a lot of information about it. Ask guidance from people who are already in the business you want to venture into. Read a lot of books and reports regarding such investment before you make investment commitment.
Warning: Never fall into a group of people who takes a lot of time to research about a particular business idea. No matter how good is your research, the only way to learn about the business is being in that business.Thankfully, we can learn from our mistakes and success.
If you have a question or suggestion, reach out to me via. Whats App only +255655376543 or email me at Hussein.firstname.lastname@example.org. I read all the emails.