Energy Sector Entry and Business Opportunities in Tanzania and East Africa.

/in /by

Due to the economic recovery efforts and increased population, East Africa has recently registered significant demand growth for energy. But how do you invest, and where do you start? This article will help you to know just that.

How do you invest.?

1.Develop business planning and forecasting.
The dangers of making uni-informed business decisions outweigh the cost of collecting market data, researching, and planning. Planning helps you spend time, effort, and money where you have the best chance of success. Also, it will help you understand the viability of the market and opportunities, competitive threats, and trends in the market places; it can also help you convince bankers, partners, and investors that your marketing strategy is viable.

2.Comply with local regulations and standards.
Once you have confidence that your project or opportunity is viable, the next step is acquiring all necessary permits and licenses.

The energy industry is highly regulated in Tanzania and East Africa. So complying with rules and standards is critical to successfully operating your company and project.

First, you must register your company with a government agency responsible for business registration in the country. You employ the service of a consultant or a lawyer to help you prepare a memorandum and article of associations and help you get a certificate of incorporation.

You have to obtain a trade license as well. Based on your nature of business, you should apply for construction permits, get operational licenses from the energy regulatory authority, or even register for national suppliers’ data.

3.Acquire Resources.
The final step is to secure financing,  find competent talents and suppliers and build networks and relationships with customers, suppliers, distributors, consultants, and regulators across the energy industry value chain.

4.Opportunities in the Energy Sector in Tanzania and East Africa

Opportunities in the energy sector are immense, spanning from building smart petrol stations, starting LPG refilling plants, and blending, marketing, and distributing lubricants(motor oil).

Furthermore, there are opportunities in the oil and gas equipment and service sector to support upcoming EACOP pipeline projects, liquefied natural gas(LNG) projects, and ongoing gas productions in Mnazibay and Songo Songo gas fields in the southern part of Tanzania.

I hope this helps.

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.