Six Oil and Gas(Energy) Sector Predictions For 2023 in Tanzania and East Africa

With the growing population coupled with the improved infrastructures, The oil and gas (energy) sector is still growing and constantly changing, shaping the economic growth of the twenty-first century and bringing opportunities to those who know where to look. This article will enlighten you on the industry events of 2023.

1. Local entrepreneurship will grow in the petroleum sector

A few years ago, investors and local entrepreneurs in Tanzania and Africa made money in mining, building, agriculture, manufacturing, and real estate. Now, local capital created through real estate, construction, and manufacturing is moving to the energy sector. local entrepreneurship is growing in service stations, dealerships, lubricants, and LPG sales. This trend will increase even further in 2023.

2. Challenge in finding talents for energy projects.

There is plenty of people willing to work in Tanzania and Africa. They love to work in oil and gas(energy) projects. They love to move forward with their families and their countries. But there’s a skills gap. The lack of reliable certification makes it difficult for employers to find the needed staff. This will affect energy start-ups. The debt and family obligations that Tanzanian staff have outside the workplace often make working for a start-up less attractive than a more reliable job in a large company or a government position.

3. Clean cooking fuel will be the next thing to sweet potatoes in Tanzania.

Due to depleting natural reserves like woods and charcoals, continuous enforcement of regulatory norms, and increasing awareness towards eco-friendly products, LPG has evolved as the primary cooking energy source in Tanzania and Africa.

Initially, the distribution of LPG was continued to urban areas only, but with rapid changes in the living condition of society, the requirement for LPG is increasing very steeply. Now the rural population is also starting to consume LPG.

4. Technology is going into renewable energy,

In Tanzania and Africa, we can only do with the issue of renewable because we have huge potential that we need to harness. We have Solar, Wind.

When we were kids, we all knew electricity came from the Ruvu river, which is hydro. And now we know that our sun is being tapped into solar energy. Technology is going to that sector. 

5. Entry of new foreign investors into the energy sector

With Tanzania’s oil and gas (energy) sector undergoing a massive change in structure and worth, new investors and companies will take part in growth energy opportunities. Because now they know a stable government will never create period chaos. Also, 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.

6. Lack of sufficient funding will delay the region’s oil and gas(fossil fuels) project.

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. Tanzania and East Africa need to increase their energy supplies. We need more funding to come into the energy industry to accelerate the development of oil and gas pipelines, gas plants, and exploration projects.