Why Many Businesses Diversify by Starting Petrol Stations in Tanzania and Why You Should Care?

A decade ago, before the Tanzania fuel station market was liberalized, only global players like TOTAL Energy and Shell dominated the fuel market in Tanzania. Now we see many smaller independent petrol station players competing with the industry giants.

Petrol stations spring up like mushrooms in Tanzania. Look around your city, and you will discover many fuel-filling stations are running. Driving around the highway in your town, you will see more than one fuel-filling station under construction.

Most people are wondering why there is a proliferation of petrol station investment in Tanzania. Why are petrol stations on every street corner in Tanzania?

This answer is pretty simple.

They are protecting capital. Businesses are expanding by building petrol stations to store and protect capital. It is less about the income generated from the petrol station and more about providing a place to store the income they generate from their primary investments and businesses.

These businesses have resources sitting somewhere doing nothing and want to double them on secure sustainable investment. And feel that petrol stations are a viable option for them to diversify.

These businesses are fast in implementing their projects and pay little attention to understanding market demand, competition, and regulatory standards. For them, a petrol station is a place to store the income generated from their primary investment.