The Best Approach to How Set Up a Successful LPG Plant in Tanzania

/in /by

As the first to develop a successful LPG plant in Tanzania, a feasibility study must determine whether the project will be economically and technically viable

Most entrepreneurs miss opportunities to create more value from their projects because they use the “just do it” approach, in which the decision to pursue an opportunity is made very quickly.

Here is an approach to setting up small and medium LPG plants anywhere in Tanzania and Africa

 

Feasibility Study.
As the first  in developing a successful LPG plant in Tanzania,   feasibility study must  be done to  determine whether the project will be economically and technically viable. The feasibility study will help you determine market size, infrastructure requirements, and existing and future LPG that are competitive

Your feasibility study should determine the following:

.
1.Market size: Obtaining LPG consumption data to determine the volume used in your target country helps you make accurate decisions on your proposed plant’s minimum and maximum storage capacity.

Also, obtaining the estimated future LPG consumption is key to determining whether there is sufficient demand for LPG plants in your target area. The capacity of the plant always depends on the market size.

2.Competitors. Tanzania LPG is a highly competitive market. Two types of competitors for your project are existing and future LPG plants. Existing LPG facilities can be described as those already operating in the market. You will also compete with future LPG plants.

Information on the planned LPG plant is critically essential because when new LPG facilities come online will compete with your plant.

3.Local regulations and Standards. The LPG market in Tanzania is subject to constant regulations, So understanding regulatory requirements and standards will ensure your LPG project complies with all local environmental regulations and Tanzania Standards.

4.Infrastructure Requirements: Determine the machinery and equipment required to build your plant, how much they cost and where you will source would help you set up an accurate budget for your project.

5.Financial Analysis. The analysis will determine the financial feasibility of the proposed project and if the desired return on investment could be achieved.

Hussein Boffu runs a consultancy provides business planning, financial forecasts, market research reports, expert analysis and consulting for entrepreneurs and business owners. Reach out to him via email at hussein.boffu@tanzaniapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.