It breaks my heart to say that it can be frustrating to find high-quality engine oil in Tanzania. We are quick to lay the blame on the government or our environment, the world or-der-everything ourselves
As entrepreneurs, leaders, investors, professionals, or sportsmen, we need to communicate our passion. We consistently undersell ourselves on the world stage. Instead, we must stand firm in our conviction that the quality of products, services, or ideas that come out of Tanzania has to be world-class.
There are massively scalable opportunities in energy, oil, and gas, the construction industry, logistics and transportation, mining, and minerals. And packaged ready to eat sector etc.
Although, reasons holding back most people from taking advantage of these opportunities are many and varied, they can be pinpointed to one main factor: there hasn’t been any comprehensive source of information from East Africa to guide prospective entrepreneurs and investors to be part of immense opportunities in the region.
Properly armed with the right information and entrepreneurial drive, you will find business opportunities in Tanzania can be very rewarding both financially and through a sense of personal achievement.
This article will arm you with the right information about great lubricant oil business opportunities in Tanzania
The market of lubricants of In Tanzania
Tanzania offers one of the largest and fastest-growing markets for lubricant business. This could be credited to various reasons like the growth of penetration of used cars in the country, more frequent changes of lubricants from older vehicles, and a good level of economic development and regulatory encouragement.
Opportunities in Lubricants Industry
1.Start a lubricant oi blending/manufacturing plant
Local market production of lubricants is very few in the country.
There are only six lubricant plants in the country that are insufficient to meet the region’s existing and growing demand for lubricant.
Entrepreneurs looking to participate in the oil industry come in and fill that gap by building a lubricant plant with innovative design.
There has been a proliferation of substandard lubricants in the country, causing loss to consumers by damaging their cars and machinery.
To win in the lubricants market in Tanzania, you need to produce and package high-quality lubricants. That will be your competitive advantage.
Although before venturing into this project, it is essential to determine where your lubricant plant will be located, where you will procure materials, and what type of products you expect to produce to meet market demand.
And what licenses and permits are required to start operations. So conducting a proper feasibility study will ensure your way to success.
2. Start Lubricating Oils Retail Shop
This is easy to start a business in the lubricants industry. If you can secure a place and set up a shop nearby garages, you will be in a position to build a profitable business.
This is because vehicle owners regularly change oils at the garages. That’s why setting up your shop there can guarantee you sustainable profits. Engine oil, grease, and brake fluids are fast-moving items in most lubricant retail shops.
The best marketing strategy for this business is to build a relationship with mechanics, as most vehicles owners and motorists rely on them for advice on what type and where they should buy lubricants for their cars.
3.Set up Lubricants wholesale distributions business
Eligible entrepreneurs can apply to become a significant oil marketing company’s super dealer who will work partly with them to sell their lubricants in the market.
Your supplier(large oil marketing company) will supply you a wide range of lubricants in bulk at a fair wholesale price, and in turn, you will sell and earn a modest profit margin, and you may decide to sell at retail price double profit.
As a super dealer, you will have to make sure that you have enough warehouse to keep the lubricants products.
4. Start Importation of lubricant oil
Importation of lubricant is a thriving and lucrative business in Tanzania. As an oil importer, you can dictate your own price in the market and have the power of introducing your own packaging and new brand in the market
You need to rent a space secured enough to house your products. Due to the proliferation of substandard lubricants, there are many licenses and permits you will need to connect with from regulatory agencies before starting operations. The aim is to ensure that all imported oils meet local and international standards.
5. Set up a waste oil recycling plant
A waste recycling plant is a facility that uses sophisticated technology to process hazardous and toxic residues producing high-quality lubricants, this leads to environmental protection. The initial investment for building an oil recycling plant in Tanzania is USD 3Million. With a great business plan that demonstrates a good likelihood of success and you are persistent, you will find the money you need. Of course, it may take longer(and require more work) than you expect, but you will ultimately be successful if you believe in the lubricant oil recycling business.
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