The Four Key Developments in Tanzanian Energy Sector
I have been following Tanzania Energy for quite sometimes years.
The energy sector in Tanzania has been undergoing a massive change in structure and worth. Here are four changes that have been happening recently in the energy sector,
The most obvious change has been an increase in petrol and diesel use. There is a fast-growing network of multinational petroleum marketing companies, and petrol stations are growing nationwide.
These development in petrol and diesel use are in line with increasing urbanization and industrialization in our country. As our economy urbanizes, car ownership rises, and much fuel is required to power vehicles.
Next to that, improved stoves and modern renewable energy technologies are rapidly gaining in urban and, to a lesser extent, in rural Tanzania.
Another change is the increasing value of local content partnerships. Multinational oil and gas exploration companies and their prime contractors care about being culturally and environmentally sensitive. They give local service providers priority in the awards of contracts and tenders.
They also actively recruit, train and promote experienced indigenous workers into managerial positions. Not to mention they take community engagement seriously. Now if you are a local service provider, you can use that as a selling point. Because that is what matters to big oil and gas buyers.
The last change in Tanzania’s energy sector is rapid growth in LPG consumption. Tanzania was slow to develop in terms of LPG growth. The LPG was used relatively exclusively by wealthy families and restaurant owners. But with a favorable fiscal environment, even rural household is adopting LPG. With proper planning and sufficient working capital, investors can get fast returns through this rapid growth of LPG consumption.
