Tanzania’s Oil and Gas(Energy) Sector Prediction for 2023

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Tanzania’s huge oil and gas (energy) sector enjoys high growth rates. Here are my predictions for the energy sector in Tanzania for 2023.

 

1. Entry of new investors and companies into energy sector

With Tanzania’s oil and gas (energy) sector undergoing a massive change in structure and worth, new investors and companies will be taking part in growth energy opportunities. As the country builds a reputation as the next energy hub in East Africa, Local and international investors want to put money in the region to leverage the growing energy demand.

2.The demand for fuel is going up.

The number of people in Tanzania and East Africa is rising. 

Industrial activity is also expanding. There will be a huge demand for fuel to power our economies and industries.

Although some place still considers firewood a cutting-edge fuel. But as firewood and charcoal have become expensive in East Africa, now our people are switching to liquefied petroleum gas(LPG) for cooking. Why are we switching to LPG? The answer is pretty simple. LPG is cheap, effective, and clean.

Tanzania’s fuel marketing industry is still not saturated. There are enormous opportunities for further investment to increase the adoption of liquefied petroleum gas(LPG) and other wide-range petroleum products across the country, as well as to transit petroleum products to the landlocked neighboring countries( Malawi, Zambia, Uganda, Burundi, Rwanda, and DRC Congo)

4. Insufficient funding comes into the region’s oil and gas(fossil fuels).

Due to activist pressure, certain commercial banks refuse to finance oil and gas(fossil fuel) projects.

Look what is going on in Uganda and Tanzania. Certain commercial banks such as Deutsche Bank, Citi, and Société génerale not finance the EACOP-project. 

Oil and gas projects are capital intensive. Without enough funding to come into the energy industry, we will not build these oil and gas pipelines, gas plants, refineries, and fuel filling stations that could add fuel supply.

5. Skills Shortage

Mult billions of dollars in oil and gas projects are coming to Tanzania and East Africa. Who will build these oil and gas pipelines, natural gas plants, and oil depot facilities?

Opportunities are immense in the oil and gas industry but require training and certification.

Without qualified and certified people, especially in the skilled craft such as welders, pipefitters, and NDT inspectors, we will outsource experience from China, India, and Europe to build and fix oil and gas facilities

 

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Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.