LPG Gap Needs Private Investment In Tanzania

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The LPG business is growing exponentially in Tanzania, With a consumption growth rate of 15 percent per year. The continued growth in LPG at an average of 28% per year is based on 2010 to 2021 data. With rural areas also starting to consume LPG, the demand is also likely to increase even further.

By 2028, other landlocked countries such as Rwanda, Eastern DRC, Zambia, Malawi, Burundi, and Uganda will have a good share of LPG sourcing from Tanzania. This will result in that is the unlimited scope of LPG marketing.

There is also a cultural shift. Most Tanzanians naturally adopt modern lifestyles. This increased LPG demand for households.

There is a huge demand now for commercial customers like restaurants and hotels.

The increased gap in demand and supply offers immense opportunity in the marketing of LPG which is fully open for private investment.

It is therefore evident that there is a good opportunity to invest in LPG facilities in Tanzania both in the terminal and receiving distribution facilities (small filling plants and transportation tankers/trucks). A huge waiting list of potential customers for the installation of LPG exists

Investments are also required in the transportation of LPG, inland storage facilities, and distribution networks. Private companies are welcomed to invest in these areas.

 

I hope this helps.

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.