An Insider Guide to Setting Up and Operating Profitable LPG refilling Plant in Tanzania and Africa

Are you passionate about the LPG business? Do you hanker after starting your own LPG refilling plant?

You will be entering a young but fast-growing market as more people embrace LPG as a clean and affordable new source of cooking energy.

The growth of commercial, industrial, and of course lifestyle of citizens in the region presents the potential future for the LPG business in Tanzania and Africa. 

So the LPG industry has so much growth potential.

My vision while writing this article is to give the best knowledge that will make you smarter in your LPG business. You can use the article as a guide in every step of your LPG business

1. Choose the right LPG plant location,  Setting up your LPG business in the wrong location will guarantee failure. Plant location should be as near as possible to the distribution areas. Collect as much as data in your proposed plant location. The plant location should be in a region where a large population is using cooking gas. So you can do your location test by watching the kind of people. 

living around the location, income base is one of the big factors to consider. Naturally, people with good income will use LPGas.

2..Smart operation: 

 Setting up your plant without product losses is key to a successful LPG business. Smart operation means to avoid gas losses during operations: That is while offloading the bowsers, during cylinder filling, avoid overfilling, leak cylinders must be decanted into other cylinders, and son on.   

3..Good marketing Strategies: 

Employing good marketing strategies is a key to a successful LPG business operation. You should ensure that all the time availability of products especially when others don’t. Superior customer services and offering competitive rates according to competitors are key to securing many customers.     

4. LPG bulk in good rates.

Find reliable suppliers who will supply you with LPG at good rates. This will lead you to have a good profit margin which in turn will lead to a successful LPG business

5. Secure sufficient funding.  

Setting up your LPG refilling plant is capital intensive And most LPG never grow fast because of insufficient capital. But the simple truth is that there are a lot of potential investors and lenders. 

If you have a good business plan that demonstrates a good likelihood of your LPG business 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 a successful and secure collaboration of investors and lenders if you believe in this business.