Exposed: Discover Four Ways How to Invest In Tanzania’s 40 Billion Town

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Some projects are ongoing, and many are coming streams. it’s no surprise that southern regions, particularly Lindi and Mtwara has been labeled as a boom town. 

For quite some years now, south of the country such as Lindi and Mtwara have been neglected by many investors. The popular misconception among investors is that the region’s return on investment is low.

With major business activities coming on stream -Mtwara and Lindi are promising regions. And I will explain.

Consider this:  

  • A final investment decision (FID) of the long-awaited liquefied natural gas(LNG)project is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID. The LNG will be developed in the Lindi, south of the country. Construction time will likely be five to six years, suggesting the large-scale project could come on-stream around 2030.
  • Also, there are high-margin graphite projects located in the Lindi region. The company developing the project Evolution Energy Minerals last year completed 5,440 meters of RC drilling over 44 drilling holes. Graphite is a critical component in Lithium-ion batteries that can be used in electric vehicles. As the world is racing to secure a new source of battery materials, Graphite  projects will fast-track in Tanzania.
  • There are ongoing natural gas productions activities in Songo Songo field and Mnazi Bay in Mtwara region. Furthermore there are coal operations.

 

Introducing…….

 Ways to Invest In Boom Towns.

 

1.Petrol stations: The number of vehicles is increasing in the regions. The region will be busy as transporters and corporations move people, machinery, and equipment. People need fuel which they can buy from your area.  

Choosing the right property before launch will be crucial to your petrol station’s success. Also, it is advisable to conduct comprehensive due diligence to estimate the expected return on investment and cost of developing your petrol station project.

2.Accommodation(Housing, apartment, camps): Have you ever considered where international companies’ employees will live? Accommodation is a major hassle for operation majors looking to provide their employees somewhere to live near the work sites.

 Workforce housing is the most significant investment opportunity in the region. Ranging from apartments, man camps, and hotels. However is crucial to know the requirements and housing standards of international energy companies.

These companies pay big dollars if you meet their safety and quality standards. This investment requires substantial initial capital. Again, conduct comprehensive due diligence before committing.

3.Break into property investment: With potential population growth, securing property in the region will help you to be part of some exciting development in Tanzania.    

4.Build small LPG refilling plants. 

In terms of LPG infrastructures, especially small LPG filling plants, only a few multinational energy investors have such facilities in other regions. Investors have neglected these regions. The gas cylinder refilling plant with a storage capacity of about 25MT may cost between USD 350,000 to USD500,000.

What’s Next?

Dear business builder, investing and building new business takes work. And it takes work to get all answers by yourself. It’s easy to fall in love with these ideas and lunge ahead at full speed without in-depth evaluation.

That’s why many entrepreneurs, investors, and new projects fail. The solution is to conduct due diligence before investing. You will be able to judge your ideas so you can make decisions about whether to fix problems or drop the project and move on to something better

 

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.