Why Liquefied Petroleum Gas(LPG) Is the Business For Which Time May Now Be Ripe in Tanzania

Twenty years ago, large populations of Tanzanians were using firewood and charcoal. We used it to cook and do everything.

By the time we got used to firewood, the government had announced that gas was now _the_ clean source of cooking energy.

It was a bit tough for many Tanzanians to embrace this new source of cooking energy.
The attitude of many Tanzanians was that LPG was highly explosive and could endanger their home.

Also, it was seen as a luxury reserved for the rich.
The beneficiaries’ awareness of the social benefits of using LPG was low. So, the annual consumption of LP gas in Tanzania was only 5,500MT in 2005.

Entering into the LPG business in Tanzania at those times was unprofitable because the market demand for cooking with LP gas was too small and Tanzanians were unwilling to pay for it.
After years of consciousness-raising concerning the social benefits of using LPG, and as charcoal and firewood become expensive and controversial to reduce deforestation, there has been a steady increase in the number of households using LPG.

. Today, most people in Tanzania are aware of the LPG as a clean and healthy source of domestic cooking energy, and they are moving away from charcoal and firewood.

The annual LP gas consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019.
With this steady upward movement of LPG consumption in Tanzania, investing in the LPG business can be one of the best business ideas to pursue in Tanzania. Why? Because the LPG has become a constant domestic requirement for households (families), lodges, restaurants, schools, colleges, hotels, and industries.

 

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.