According to S&P Global Commodity Insights, Tanzania is among the 11 Sub-Saharan African countries that have recorded significant LPG demand growth in recent years.
The country has also made remarkable progress in establishing a supportive regulatory and investment environment that enables substantial expansion of the LPG sector.
Government-led initiatives—particularly the strong national clean cooking strategy—are among the key drivers accelerating LPG demand across the country.
Tanzania’s LPG consumption has been increasing at an impressive average annual rate of 15%. In 2024, per capita LPG consumption was approximately 3 kg, and this figure is expected to rise sharply to 25 kg per capita by 2030.
This ambitious growth projection highlights a major energy transition, as more households and businesses shift away from charcoal and firewood toward cleaner, modern energy sources such as LPG.
With demand expanding rapidly, it is increasingly clear that Tanzania presents strong investment opportunities in both LPG receiving terminals and distribution infrastructure.
Investors stand to benefit from establishing or expanding facilities such as small filling plants, bulk storage units, and transportation fleets—including tankers and delivery trucks.
These facilities will help households and businesses to obtain stable and affordable LPG supplies
Given the pace of consumption growth, the existing LPG infrastructure network will not be sufficient to meet future demand.
Read also:A Sample business plan for an LPG Plant in Tanzania or Africa
Tanzania will require more capable and efficiently managed LPG distributors, as well as the expansion of existing small and mid-sized players, to ensure the country can supply projected volumes safely and effectively.
Overall, Tanzania’s policy support, rising consumption, and infrastructure gaps firmly position the country as a high-potential market for investment across the entire LPG value chain.
