Five Megatrends Influence Rapid Rise Of Local Entrepreneurship In Oil and Gas(Energy) Industry In Tanzania and Africa         

  

Business Opportunities in the oil and gas are lucrative in Tanzania and Sub-Saharan Africa. But for quite some years, business in the industry was dominated by multinationals and expatriates.

In the last six years, we have been witnessing the rise in local business participation in the energy business. The article provides an analysis of what I find fascinating about the local entrepreneurship prospect in the oil and gas (energy) business in Tanzania and Sub Saharan Africa

1,The rise of venture capital opportunities from abroad and within Tanzania and Africa. 

This creates more opportunities for access to investment in the oil and gas (energy) industry. The credit system in many sub-Saharan African countries has not been too great so it’s very expensive to raise capital and that also created a bit barrier to entry for potential entrepreneurs in the oil and gas (energy) business.

But now there are a lot of opportunities. Banks are aware that businesses in the energy sector are lucrative and have a great likelihood of success due to the growing energy demand in the region. You hear a lot 

more about pitch competitions and angel investment networks. This has given a lot of encouragement to new entrepreneurs to enter the business in the oil and gas (energy ) sector.

2.Great awareness about diversifying into a more growing and sustainable industry.

We are seeing wise Tanzanians and African entrepreneurs and companies are diversifying away from their main 

line of business because their markets are already saturated or start to offer less potential for future growth. So now they are looking somewhere else for sources of new revenues.

To be honest with you since Covid 19 pandemic outbreak in 2020 to date, economies around the globe have not improved as much as we would think they have. Most businesses are doing poorly. Some markets are saturated in such a way that starts to offer less potential for future growth.

 Look around your city. Clothing shops are completely empty. Hotels are running away. And media companies and struggling to attract advertisers. And airline companies are laying off employees.

Look again around your city. How many oil and gas(energy companies) are closing this time? How many petrol stations and LPG (cooking gas)facilities are closing this time? Business in the energy industry. You will see most energy businesses are working. 

 Where are most businesses are declining? Business in the energy industry continues to expand rapidly

But why is that? The answer is pretty simple. Oil and gas (energy) businesses thrive even in a receding economy. Regardless of the status of the economy, people drive. Commercial and transport vehicles will look for a place to fill their car tank with fuel. Commercial and households will need LPG(cooking gas) to heat food. And factories will need the energy to power their business operations. So oil and gas (energy) businesses will never run out of business in any economy.

3.Great awareness about having multiple streams of income. 

There’s also been great awareness about having multiple streams of income. Now wise Tanzanian entrepreneurs have more than one additional stream of income. And people who are even employed in corporations are also marketing petroleum products via petrol station set up.

 

4.Local content.

As a part of the government of Tanzania’s emphasis on the local content partnership, we are seeing the rise of local business participation in the oil and gas industry. Local content typically refers to local recruitment, training, and purchase of local goods and services. By increasing the local content of their oil and gas projects and operations, companies can help develop local infrastructures, skills, and communities from which they operate and recruit. Developing local content projects also meet the expectation of the host countries where locally sourced workforce, goods, and services can help stimulate the economy, build industrial capacity, allow skills transfer in areas most in need of investment.

 

5.Digital Boom.

The digital boom has also created a lot more accessible for people who previously will never have anything to do in the oil and gas (energy) industry. Now they can engage with customers, market themselves, and get paid all from their offices. Look at what we are doing at Tanzania Petroleum. We have established ourselves as an authority in the industry and support numerous entrepreneurs and companies across Africa to pursue their ambition in the industry

All this influenced the boom of local entrepreneurs and local companies in the oil and gas(energy) industry in Tanzania and Africa