Five Untapped Business Opportunities in the Oil and Gas Sector in Tanzania and East Africa

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The coronavirus outbreak and the uncertainty that it has created have impacted how people make investments that guarantee returns even during economic recessions.

If you are looking to better yourself and serve your community, here are business opportunities that can give you more control over your financial destiny and time.

1. Start Small Scale Fuel Station with Two Pump in Rural Areas

Walk around remote or off-the-major roads areas of Tanzania; you will see some roads and districts with no filling stations at all while others have only one.

Walk around in rural areas; you will see people travel many kilometers to purchase the fuel. Some of them turn to unlicensed suppliers (illegal vendors) whose product quality cannot be guaranteed.

Consumers also often buy and store large quantities of fuel for use, and this has sometimes resulted in fire outbreaks causing damage to property and human life because of poor handling.

This is your opportunity to set up a rural filling station to serve consumers in those areas.

 Major oil marketing companies prefer to set up modern fuel stations in major towns. So they always neglect these rural areas. 

Having your small petrol station in the rural areas is far less expensive to set up and maintain and still guarantees a sustainable profit.

2.Star LPGas (Cooking Gas) Business: 

As long as the food is a fundamental human need, cooking is a human necessity too. When you start an LPGas business, you are sure to make a return because the products are a necessity, not a luxury.

 More cooking is done in households, hotels and restaurants, schools, and colleges. This is the simple reason why you should consider venturing into LPG (cooking gas) business. A hard-working entrepreneur can build LPGas business with good marketing strategies to serve their communities and support their families. 

 

3.Provide supportive services and products to major oil and gas projects like the East African crude oil pipeline project(EACOP).

These projects offer ancillary services such as accommodation, security and transportation, equipment, and material procurement to major energy companies and their main contractors.

 

4.Start Modern Fuel Filling Stations:

To be specific, petrol stations line every street corner. More people are consuming more fuel.

Consider this:

· People are buying more cars. Look at all the cars on the highway—thousands of them—they buy fuel from petrol stations.

· There is still a power-failure problem in the country, so people depend on diesel and petrol—powered generators. They have to buy fuel from petrol stations.

· Aside from that, we’re no longer in the Stone Age where people cook with logs of wood. Now, they buy kerosene from a petrol station for their cooking. Those who don’t use kerosene use cooking gas, which they buy from petrol stations.

There’s an available market to sell to in all the above. Besides selling petrol, diesel, kerosene, cooking gas, and engine oil, those petrol stations:

· Offer car washing services.

· Offer car repair services.

· Have a restaurant and, in some cases, a bar.

· Have a shopping mall.

· Even rent out vacant offices to companies like DSTV, telecommunication companies, etc.

So, you see, economic activities may have lessened in your city, but it seems some economic activities are increasing by the day. 

This is a huge business opportunity if you’re passionate about starting a filling station.

It involves:

  • Low risk: The petrol station business is not like the forex market where your investment just liquidates. Or MMM, where your mavros suddenly freeze. Even if you stop running your business, there are still scores of income streams you can tap into.
  •  Selling to an already available market: You are not persuading people to buy products they don’t intend to buy like multi-level marketers do. You’re serving people who can’t do without your products.
  • ·Opportunities to do complementary businesses: Businesses like car washing, car repair, restaurant, shopping mall, etc

 

                                So what are You Waiting For?

   Start today by taking small actions towards your ideas. A little things matter. Small actions today can lead to big results tomorrow.

I am your partner, facilitator, motivator, and advisor.Reach out to mw via +255(0)655376543 or Hussein.boffu@tanzaniapetroleum.com

 

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.