Tanzania remains a promising lubricant market for investors seeking to expand their impact and grow their business.
With increasing vehicle ownership rates, particularly used imports. Ongoing large infrastructure projects, extensive road networks. And expansion of mining, agriculture, manufacturing, transportation, and construction industries, the demand for lubricants expected to remain strong in Tanzania
The real question is not simply “Is Tanzania’s lubricants market growing?”
It is: How large is the market, who is consuming the product, who controls supply, and where can a new entrant still compete profitably?
The available industry data suggests a market that is already substantial, increasingly locally supplied and still expanding.
Tanzania’s lubricant market has already crossed 60 million litres.The strongest starting point is official market-supply data.
EWURA reported that Tanzania supplied approximately 61.13 million litres of lubricants in FY2023/24, up 3% from 59.31 million litres in FY2022/23. Of the FY2023/24 total, approximately 51.09 million litres, or 84%, were locally blended, while about 10.05 million litres, or 16%, were imported as finished lubricants.
That tells us something important. Tanzania’s lubricant market is not simply an import market. It has developed a significant local blending industry.
And that changes the competitive landscape for anyone considering manufacturing, importing or distributing lubricants.
The market has been growing.
The longer-term trend is also encouraging. EWURA reported lubricant supply of approximately:
- 43.9 million litres in 2018
- 55.5 million litres in 2022
- 58.5 million litres in 2022
- 59.3 million litres in FY2022/23
- 61.1 million litres in FY2023/24
The exact comparison needs to account for reporting periods, but the direction is clear: lubricant volumes supplied to the Tanzanian market have increased substantially over time.
Independent market research also points to continued growth. One recent industry estimate reports a 12.89% CAGR for Tanzania’s lubricant import market between 2020 and 2024, with 2024 import-market growth of 9.87%.
The important takeaway isn’t whether one forecast says 10% or another says 13%. It is that multiple indicators point toward an expanding market.
What is driving lubricant demand?
Lubricants are consumed wherever machines move, rotate, operate or generate heat.
That gives Tanzania a broad demand base.
- Transport
Cars, buses, trucks, motorcycles and commercial vehichles all require lubricants.
As the vehicle population grows, particularly used imports, the installed base of engines requiring oil changes also expands.
But the opportunity isn’t simply the number of vehicles.
It is: How many vehicles are actively operating, how often are they serviced, what lubricants do they require, and who controls the purchasing decision?
- Agriculture
Tractors, irrigation equipment, harvesters and other machinery all create recurring lubricant consumption.
As commercial agriculture becomes more mechanised, lubricant demand can rise alongside equipment utilisation.
Agricultural machinery creates demand for:
- Engine oils
- Hydraulic fluids
- Gear oils
- Greases
- Transmission fluids
- Mining
Mining operations are particularly lubricant-intensive.This makes mining an attractive B2B segment, although competition and technical requirements can be high.
Heavy equipment can consume significant quantities of:
- Engine oils
- Hydraulic oils
- Gear oils
- Greases
- Transmission fluids
- Manufacturing and industry
Industrial customers can also have higher technical requirements than ordinary automotive consumers. That creates an opportunity for suppliers that can offer more than a commodity product.
Factories use lubricants across:
- Motors
- Gearboxes
- Compressors
- Hydraulic systems
- Bearings
- Production equipment
Who controls Tanzania’s lubricant supply?
This is where the market becomes particularly interesting.
EWURA identified six lubricant blending plants in Tanzania in FY2023/24:
- TotalEnergies Marketing Tanzania
- Oryx Service and Specialities
- Mineral Oil Corporation
- Mogas Tanzania
- General Petroleum
- Lake Lubes
Together, these plants accounted for approximately 51.09 million litres of locally blended lubricant supply in FY2023/24. And the market is not evenly distributed.
FY2023/24 local blending market share
Company Blended litres Share
TotalEnergies 18.30m 35.82%
Oryx 14.95m 29.26%
Mineral Oil 8.05m 15.76%
Mogas 4.67m 9.13%
General Petroleum 3.76m 7.36%
Lake Lubes 1.36m 2.66%
The first two players alone accounted for roughly 65% of local blending volume. That means the market is competitive—but it is not evenly fragmented.
The competition is not only about price.
A new lubricant brand entering Tanzania faces several established competitive advantages.
Large players can have:
- Existing distribution networks
- Petrol stations
- Transporters relationships
- Brand recognition
- Technical support
- Import infrastructure
- Local blending capacity
- Dealer networks
TotalEnergies, for example, operates a large lubricant blending facility in Tanzania and markets lubricants through its national network.
So competing simply by saying: “Our oil is cheaper.”
may not be enough. A new entrant needs a reason for distributors, workshops, fleets or industrial customers to switch.
Where is the opportunity for new entrants?
This is where the market becomes more interesting.
Here are the investment opportunities in the lubricants market in Tanzania.
Opportunity 1:Finished lubricant blending.
Construction of blending plant to produce finsihed lubricants for use in variety automative and industrial applications. Blended lubricants are prepare by brending base oils with variety of additives depending on what final applicaion will be.
Opportunity 2: Lubricant additives
Opportunity to set up a blending facility to produce additive package. Lubricant additives are chemicals the modify lubricant capability of base oils and provide further enhanced properties(such as lower or higher abrasion,pour point depression, anti-foaming etc.)
Opportunity 3: Specialisty Grease.
The industrial and equipment greases are used in the mining, agriculture, construction,food processing, and cement industries, among others. Greases are used to protect various equipment from extreme pressure, corrosion of bearings, water absorption, and wash out in the steel and paper industries
Opportunity 4: Bitumen
The bitumen market in Tanzania is significant due to the country’s large infrastructure development projects, growing construction industry, and extensive road networks.
Bitumen, also known as asphalt, is a crucial component in road construction and maintenance.
The market for bitumen in both regions is expected to grow further due to ongoing urbanization efforts, population growth, increasing vehicle ownership rates, and government investments in infrastructure development.
Opportunity 5:Aviation and defence lubricants
Tanzania increase in disposable income and a growing middle class. This has resulted in higher demand for air travel, both for business and leisure purposes. Such as tourism and airlines Expansion
Opportunity 6:Oil-well drilling fluid
Oil and gas dirlling operations in Tanzania and East Africa requires drilling fluids which are currently imported from international suppliers.
Construction of a processing and production facility for drilling fluid by utilizing to produce drilling fluid, input materials (base oil and additives) are blended and mixed together in an emulsified form in different concentrations – depending on end-usage requirements. Specialty chemicals like barite, bentonite and others are added to enhance properties such as viscosity, friction, stability, emulsification, foaming, and abrasion.
Opportunity 7: White Oil
Production of cosmetic, food, and pharmaceutical grade white oils which are further utilized to produce many common cosmetics such as lotions and creams.
In addition, white oils are used for myriad purposes including polymers, textiles, additives, and food & beverage
Opportunity 8:Re-refine base
Re-refining used oil has several benefits, including promoting sustainability and circularity, reducing waste and pollution, and conserving natural resources.
Compared to traditional oil refining methods, re-refining consumes less energy and produces fewer greenhouse gas emissions. It also requires fewer raw materials and generates less hazardous waste. Re-refining can produce high-quality base oil that meets or exceeds industry standards, making it a viable alternative to virgin oil for various applications.
Opportunity 9: Transformer Oil.
Construction of a blending and processing facility to produce transformer oil • Mineral base oils are processed to remove impurities, particles, and water to strengthen dielectric properties of the oil and reduce the flammability and oxidizing/corrosive properties.
What about importing versus local blending?
This is one of the most important strategic decisions. Tanzania’s FY2023/24 data shows that approximately 84% of supplied lubricant volume was locally blended, while 16% was imported as finished product.
That doesn’t mean importing finished lubricants is unattractive. Some specialised products may still make sense to import. But for a company targeting large volumes, local blending can potentially provide advantages around:
- Supply flexibility
- Product localisation
- Regional distribution
- Production economics
- Inventory management
- Export opportunities
The decision should ultimately be based on landed cost versus local production cost, required volume and product specifications.
The next question is not “How big is the market?”
It is: Where is the market growing fastest?
A national market of 71 million litres is useful.
But an investor needs a much more granular picture. For example:
- Which regions consume the most?
- Which customer segments are expanding?
- Which products have the highest demand?
- Where are distributors strongest?
- Where are competitors weakest?
- What is the price sensitivity of each segment?
- These questions turn market size into an investment opportunity
Tanzania Lubricants Market Outlook.
The medium-term outlook appears positive. The fundamental demand drivers are broad:
- More vehicles
- → more servicing
- → more lubricant consumption.
- More agricultural machinery
- → more engine, hydraulic and gear-oil demand.
- More mining and construction activity
- → more heavy-equipment lubricant demand.
- More manufacturing
- → more industrial lubricant consumption.
- At the same time, competition will increase.
The market is already populated by established blending companies and international brands, so the opportunity for new entrants will increasingly depend on building local blending capacity, and distribution, rather than importing another generic engine-oil brand.
What should an investor look at before entering?
A proper Tanzania lubricants market study should go beyond national market size.
It should examine:
Market
- Total consumption
- Historical growth
- Product categories
- Automotive versus industrial demand
- Regional demand
Customers
- Transporters
- Workshops
- Mining companies
- Agriculture
- Manufacturing
- Construction
- Retail consumers
Competition
- Brands
- Blenders
- Importers
- Distributors
- Dealer networks
- Regional presence
Economics
- Base-oil costs
- Additive costs
- Packaging
- Blending
- Warehousing
- Transportation
- Distributor margins
- Retail margins
Regulations
Identify applicable approvals, licences, permits, standards, environmental requirements, land requirements, construction requirements, and operating obligations and their associated costs and timeline
The Bottom Line.
Tanzania’s lubricants market is already substantial, with official data showing more than 71 million litres supplied in FY2023/24 and local blending accounting for about 84% of the market by volume.
But the opportunity isn’t simply: “Tanzania needs more lubricants.”
The more interesting investment thesis is: Tanzania has a growing lubricant market, but the next winners may be determined by which customer segments, products and geographic markets remain underserved.
