A Sample Business Plan for Starting and Operating a Road Logistics and Transportation Business for Fuel/Petroleum Products in Tanzania

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 1. Executive Summary

Company Overview

ARA Transport is a fully indigenous enterprise that plays a pivotal role in the energy, logistics, and transportation sectors in Tanzania and the broader East and Central African regions. The company is registered and licensed to transport petroleum products, offering comprehensive logistics services that meet local and regional demands. Founded in response to the growing need for efficient and reliable petroleum transportation, ARA Transport has built a reputation for safety, reliability, and customer satisfaction.

Market Rationale

The formation of ARA Transport is driven by the increasing demand for petroleum products across Tanzania and its neighboring landlocked countries, including Malawi, Zambia, Uganda, Burundi, Rwanda, and the Democratic Republic of Congo (DR Congo). The rapid economic growth in these regions has led to heightened energy consumption, necessitating robust logistics and transportation solutions to ensure an uninterrupted supply of petroleum products. ARA Transport aims to bridge this gap by providing state-of-the-art transportation services tailored to the unique needs of its clients.

 Services Offered

ARA Transport specializes in the road transportation of a variety of petroleum products. The company’s portfolio includes the following:

  1. Automotive Gas Oil (AGO) – Diesel: Commonly used for fuel in diesel engines, particularly in commercial vehicles such as trucks and buses.
  2. Premium Motor Spirit (PMS) – Petrol: Essential for the operation of motor vehicles powered by gasoline engines.
  3. Illuminated Kerosene (IK): Often used for lighting and cooking purposes, especially in regions where electricity access is limited.
  4. Jet-A1: Aviation fuel utilized by aircraft, critical for both domestic and international air travel
  5. Heavy Fuel Oil (HFO): Used in power generation and in the marine sector.
  6. Industrial Diesel Oil (IDO): Employed in industry for machinery and other diesel-powered equipment.

 Operational Excellence.

To ensure optimal service delivery, ARA Transport maintains a fleet of clean, well-maintained trucks that are regularly inspected to meet stringent safety and comfort standards. The company’s drivers are highly trained and certified to handle hazardous materials, adhering to both local and international safety protocols.

The emphasis on maintaining high safety standards is reflected in routine inspections and maintenance of the transportation fleet. This proactive approach helps to preclude operational disruptions and uphold the company’s commitment to safety and reliability.

Target Customers

ARA Transport serves a diverse clientele, including:

  1. Businesses: Companies requiring timely and efficient delivery of petroleum products to support their operations.
  2. Government: Public sector entities that depend on a consistent supply of fuels for various functions and initiatives
  3. Oil Marketing Companies: Firms involved in the distribution of petroleum products that rely on third-party transportation services to reach their end consumers.

4.Petroleum Transportation Companies: Entities specifically focused on the logistics of petroleum products, which can subcontract ARA Transport for their hauling requirements.

 Strategic Importance

Positioned as a key player in the Tanzanian and regional fuel supply chain, ARA Transport contributes significantly to the economies of the countries it serves. Efficient fuel logistics are critical for economic stability and growth, as they influence the cost and availability of energy, which in turn affects all other sectors of the economy.

 Regional Scope

Tanzania, due to its strategic location and developed infrastructure, serves as a central hub for petroleum transportation. This enables ARA Transport to efficiently transit petroleum products to landlocked neighboring countries, facilitating regional trade and energy distribution. The company’s services support these countries’ import needs by leveraging Tanzania’s access to the Indian Ocean and its well-established network of pipelines and railways.

 Technological Integration

ARA Transport employs advanced logistics management systems to optimize routing, ensure timely deliveries, and manage maintenance schedules. By integrating technology into their operations, they can maintain high levels of efficiency, minimizing delays and reducing operational costs. Real-time tracking systems also provide clients with up-to-date information on their shipments, enhancing transparency and trust.

Competitive Advantage

Several factors set ARA Transport apart from its competitors:

  1. Safety and Compliance: By strictly adhering to local and international safety standards, the company ensures the safe handling and transportation of hazardous materials.
  2. Reliability: With a well-maintained fleet and trained drivers, ARA Transport guarantees timely and efficient deliveries.
  3. Customer-Focused Service: The company’s proactive customer service approach ensures that clients’ specific needs are met, and any concerns are promptly addressed.
  4. Regional Expertise: ARA Transport’s deep understanding of the regional market dynamics and regulatory frameworks allows them to navigate the logistical and bureaucratic challenges unique to East and Central Africa effectively.

Sustainability and Corporate Responsibility

ARA Transport is committed to sustainable business practices. This includes minimizing the environmental impact of their operations through the use of fuel-efficient vehicles and implementing best practices in waste management. The company also engages with local communities, contributing to social and economic development initiatives in the regions they operate.

Future Prospects

Looking forward, ARA Transport plans to expand its fleet and extend its services to more countries within East and Central Africa. Continuous investment in technology and staff training will ensure that it remains at the forefront of the industry. As demand for petroleum products grows, so too will the opportunities for ARA Transport to augment its service offerings and clientele.

ARA Transport’s blend of reliable service, strategic regional presence, and commitment to safety and efficiency positions it as a trusted partner in the petroleum logistics and transportation sector. The company’s clear vision and robust operational framework augur well for its sustained growth and success in the dynamic energy landscape of Tanzania and beyond.

Mission Statement

Our mission is to provide reliable, safe, and efficient petroleum transport services. This mission statement elaborates on our company’s aspirations, commitment, and operational ethos in fulfilling this goal.

Operational Scope

Our operations extend beyond national borders, serving countries like Malawi, Zambia, Uganda, Burundi, Rwanda, DR Congo, and Kenya. With a primary focus on transporting petroleum products—from oil depots to various destinations—we ensure a consistent supply of essential fuels such as premium motor spirit (PMS), diesel, kerosene, jet fuel (Jet – A1), heavy fuel oil (HFO), and industrial diesel oil (IDO).

Core Values and Principles:

1. Reliability:
– Consistency: ARA Transport pledges to provide uninterrupted and timely delivery of petroleum products, essential for the socio-economic development of the regions we serve.
– Dependability: We aspire to be a reliable partner to our clients, ensuring our logistics solutions meet their specific needs every time.

2. Safety:
– Hazardous Materials Handling: Safety is paramount. Our drivers are fully trained and licensed to handle hazardous materials, adhering to stringent safety standards to prevent accidents and ensure the well-being of people and property.
– Vehicle Maintenance: Our fleet of trucks is regularly inspected and meticulously maintained for safety and operational efficiency.

3. Efficiency:
– Operational Excellence: We employ best practices in logistics and transportation to maximize efficiency, minimizing delays and optimizing fuel consumption.
– Customer-Centric: Our services are designed to be responsive and adaptable, aligning with the dynamic requirements of our diverse clientele, including businesses, government entities, oil marketing companies, and other petroleum transport firms.

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In the full version, you will have access to the following table of contents:

 1. Executive Summary

  • Company Overview
  • Mission Statement
  • Goals and Objectives.

 2. Company Description

  • – Business Background
  • – Key Services
  • – Target Market

3. Market Analysis

  • – Industry Overview
  • – Market Needs
  • – Competitive Analysis
  • – SWOT Analysis

 4. Organizational Structure

  • – Leadership Team
  • – Employee Roles
  • – Training and Compliance

 5. Services and Operations

  • – Service Process:
  • – Fleet Management
  • – Safety and Regulatory Compliance

 6. Marketing Strategy

  • – Target Audience
  • – Brand Positioning
  • – Marketing Channels
  • – Sales Strategy

 7. Financial Plan

  • – Start-up Costs
  • – Revenue Model.
  • – Financial Projections:
  • Funding requirements.

  1.  Risk Management

  • – Risk Identification       
  • – Mitigation Strategies.

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42+ Great Business Ideas and Opportunities in the Oil and Gas Sector in Tanzania and Africa

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There are boundless oil and gas opportunities in Tanzania and Africa waiting for men and women with courage and fortitude. Initial costs of setting up some of these businesses may be high.

But with a great business plan, it is easier to secure cooperation from investors and banks as they are already aware the demand for fuel and energy is huge in Tanzania and Africa.

A person is interested in pursuing business opportunities in the industry. should acquire as much knowledge as they can.

If you don’t have a background in the industry, you may work together with a person who has the experience, because valuable insider knowledge could potentially save you monetary and legal problems.

Educating yourself on the kind of business opportunities you’d like to make allows you to choose the most profitable option for you.

So, I’m going to make it simple by laying out the different types of opportunities in the oil and gas industry.

 1.Establishment of Gas Cylinder Manufacturing Plant: It will interest you to know that Tanzania imports the LP Gas cylinders from India. So, there is no functional LP Gas cylinder manufacturing facility in Tanzania, and this presents immense opportunities for aspiring entrepreneurs with a sizable amount of capital to set up gas cylinder manufacturing plants in Tanzania.

 2. Start a Profitable LP Cooking Gas Retail Shop: The LP Gas retail shop is popularly known as LP Gas dealer or LP Gas reseller. As you walk along the streets of Tanzania, you will notice that there are retail shops at every corner. It is cheap to start this business. You need TZS 2 million to TZS 6 million to start an LP Gas retail shop in Tanzania. The key factors to success in this business are location and your marketing skills. A prime location is a key determinant of the success of an LPG retail shop. Good location and excellent customer services are crucial to success in this business.

 3. LP Gas Distribution and Logistics: Opportunities in the segment is to involve in distributing the LPG and its cylinders through tank trucks to different LPG gas dealers and LPG refilling centers in Tanzania

4. Cooking Gas Site Installation Services

Consumers like Schools, hotels, army campuses, and colleges buy LP cooking Gas in bulk. So they always need bulk tanks and a network of pipelines and cookers to enable to use of LPG for boiling and cooking

You can join forces with a team of a talented individual who has a technical capability and expertise and offering to provide and install LPG infrastructures such as above-ground LPG storage tanks 

5 . Cooking Gas Products and Accessories

Offering LPGas products and accessories like cookers and fitting is another lucrative business opportunity in Tanzania.

 

6.LPG (Cooking Gas Wholesale) Distribution

Eligible entrepreneurs can apply to become a large oil marketing company’s super dealer who will work partly with them in the sale of the LPG, cookers, Fittings, and site installation in your target region.

Your supplier(large oil marketing company) will supply you full gas cylinders in bulk at a fair wholesale price and in turn, you will sell and earn a fair profit margin and you may decide to sell at retail price to double profit.

As a super dealer, you will have to make sure that you have enough full gas cylinder stock at any point to meet the orders of your clients instantly. You will also have at least one supply carrier to ensure effective supply. The initial capital investment for this venture ranges from Tsh 35,000,000 to Tsh 60,000,000.

 

7.Start a lubricant Production Company/Build lubricant Production Plants.

Local market production of lubricants is very few in the country.  

There are only six lubricant plants in the country that are insufficient to meet the region’s existing and growing demand for lubricant. 

Entrepreneurs looking to participate in the oil industry come in and fill that gap by building a lubricant plant with innovative design.  

 There has been a proliferation of substandard lubricants in the country, causing loss to consumers by damaging their cars and machinery. 

To win in the lubricants market in Tanzania, you need to produce and package high-quality lubricants. That will be your competitive advantage.

Although before venturing into this project, it is essential to determine where your lubricant plant will be located, where you will procure materials, and what type of products you expect to produce to meet market demand. 

And what licenses and permits are required to start operations. So conducting a proper feasibility study will ensure your way to success.

8. Start Lubricating Oils Retail Shop 

This is easy to start a business in the lubricants industry. If you can secure a place and set up a shop nearby garages, you will be in a position to build a profitable business. 

This is because vehicle owners regularly change oils at the garages. That’s why setting up your shop there can guarantee you sustainable profits. Engine oil, grease, and brake fluids are fast-moving items in most lubricant retail shops.

The best marketing strategy for this business is to build a relationship with mechanics, as most vehicles owners and motorists rely on them for advice on what type and where they should buy lubricants for their cars.

9.Set up Lubricants wholesale distributions business

Eligible entrepreneurs can apply to become a significant oil marketing company’s super dealer who will work partly with them to sell their lubricants in the market.

Your supplier(large oil marketing company) will supply you a wide range of lubricants in bulk at a fair wholesale price, and in turn, you will sell and earn a modest profit margin, and you may decide to sell at retail price double profit.

As a super dealer, you will have to make sure that you have enough warehouse to keep the lubricants products.

10. Start Importation of lubricant oil 

Importation of lubricant is a thriving and lucrative business in Tanzania. As an oil importer, you can dictate your own price in the market and have the power of introducing your own packaging and new brand in the market

You need to rent a space secured enough to house your products. Due to the proliferation of substandard lubricants, there are many licenses and permits you will need to connect with from regulatory agencies before starting operations. The aim is to ensure that all imported oils meet local and international standards.

11.LPG Gas Plant:

 This is a lucrative investment opportunity in Tanzania’s LPG value chain. This kind of investment has multiple sources of income. As a large LP Gas marketer, you import, store and sell LP Gas to super dealers, gas refilling station owners, and you can also sell in bulk to commercial customers like hotels, lodges, schools, and colleges. Furthermore, you can earn additional income by offering installation services of bulk tanks and pipeline networks to schools and hotels that need to use LP Gas for cooking.

The initial capital requirement for this storage terminal is huge: it will require not less than TZS 1.5 billion. However, the business is more profitable as you’d sell the LPG in bulk.

12.Oil and Gas Mediator

Oil and gas companies often make deals with equipment and/or service providers, and whenever they do this, the intermediary earns a handsome commission for every successful transaction carried out. The disadvantages of this business model is minimal because it requires next to no startup capital. All you need are contacts of customers in the industry for whom to serve as intermediary and reputable vendor.

13. Maintenance and Servicing

This is another profitable business because oil and gas companies have many facilities including depots, gas plants, tank farms, power plans, gas wells. So, they will always need to fix and maintain them.

And that is where you come in.
However, and most importantly, you need sufficient technical knowledge and you have to assemble a strong team of service engineers and technicians to fully satisfy your clients.

14. Human Resources (Manpower Management)

Companies in the oil and gas industry are busy with operations and productions such as drilling, extracting etc. They want to focus on their core business and that’s why hiring a recruitment agency will save time and hassles with hiring workers.

Bear in mind that companies in the industry hire many people when they have new projects. So, to stand out in this business, you need keep abreast of what new project is forthcoming in the industry and be the first person to approach the clients for manpower management services.

15. Consulting

While many consulting firm in Tanzania and East Africa focus on engineering and project consulting, there is a gap in the market in need of providing guidance, support and resources for the investors who own or want to start a business in this industry.

So, you fill this gap by starting your own consulting firm, consulting and providing business support for the people who want to build a sustainable business in the oil and gas industry. This business is ideal for people who don’t have a huge capital to venture into an expensive oil and gas business but have in depth knowledge of the oil and gas industry.

16. Products (Fuel) Haulage and Logistics

Due to the increasing demand for petroleum products in East African countries, transportation of these products (for example, premium motor spirit (PMS), diesel, kerosene, and other petroleum products) has opened a lucrative investment opportunity for entrepreneurs. This business is about using fuel tankers (trucks) to distribute petroleum products with transport charges depending on the distance to be covered and the capacity of the truck.

You will have to obtain a license from EWURA to be allowed to transport fuel across the country or to neighboring countries. You will have to purchase a truck and hire a qualified and experienced driver who will haul petroleum products for marketers from depot to their desired destination.

I would recommend you start with transporting petroleum products from depots to filling stations locally across the country. As your business expands, you can acquire a new license to transit fuel to neighboring countries such as Uganda, Kenya, Rwanda and Congo DRC.

17. Gas Retailing/Distribution

Cooking gas or LPG distribution is one of the most profitable oil and gas business opportunities. Yes, it demands medium scale capital investment. You also need to have proper licensing from the relevant government agency. Also, the market for cooking gas distribution is increasing.

18. Build a Website

The website should focus on the oil and gas industry. Do reviews, interviews and write original content. Monetize your traffic through advertisements, referrals and affiliate programs.

19. Start a Petrol Station

If you’re brainstorming in order to find a perfect business idea in Tanzania and East African oil and gas sector, investing your cash in the petrol filling station business is a wise decision.
This business ensures steady profit in a reasonable time from setting up. You might feel the market is already flooded, but you can come in and have a go at it. Petrol stations are in every street corner because they make insane profit.

Don’t get me wrong. I am not saying this to brag. Instead, I am telling you this because I’ve carried out solid research. So, I can confidently tell you that this is one of the right business opportunities to pursue.

The filling station market emerged in tandem with the automobile industry.
Most important is the emerging mode of transportation. There are tricycles or “boda-boda,” as everyone calls it, and it has increased the demand for petroleum products in Tanzania. The good news is that, all these vehicles and generators run on diesels or petrol.

With petrol station in every street corner, you might feel the market is already saturated. But with a good location, commercial expertise, systematic marketing and a wide range of services, new entrepreneurs like you can win the competition in this business.

20. Oil and Gas News

You can make money sharing news and information on latest developments, investment ideas, petroleum business challenges, entrepreneur interviews, etc. through online and offline means such as blogging, publishing periodic magazines, creating an oil and gas job portal, starting TV shows targeting the oil and gas sector and lots more. This is a perfect online oil and gas business for everyone.

21. Oil and Gas Brokerage Services

Even if you have no money to venture into the oil and gas business, you can still profit from the industry by offering brokerage services between buyers and sellers of petroleum products.

22. Start a TV Show Production

You can also launch a TV show targeting the oil and gas sector. You can profile and interview entrepreneurs in the oil sector, review the challenges in the petroleum sector, etc.

23. Blogging on Oil and Gas-Related Issues

Another easy-to-start business in the oil and gas value chain is to start blogging on oil and gas-related issues. It is interesting to note that there are loads of people out there who are making millions annually from blogging. If you are an oil and gas professional or someone who has sound knowledge in the oil and gas industry, one of the businesses that you can consider starting is to start blogging on oil and gas related subjects. The truth is that if your blog has useful and helpful content, you will attract loads of traffic and if you have loads of traffic on your blog, you can easily secure good advertising deals from stakeholders and other businesses in your blog. Just ensure that you update your blog regularly and you will continue to attract traffic.

24. Publication of Oil and Gas Magazine

Another of the several businesses is to start publishing oil and gas magazines. Information is key in any industry and all you need to do to be able to gain ground with this type of business is to ensure that you have relevant contents in your magazine per time. Part of the information that you should make available in your oil and gas magazine are the various business opportunities in the oil and gas industry, the latest trends, news and information as it relates to the industry, and advisory services to investors who are looking towards investing in the oil and gas industry.

25. Lubrication Oil Retail Shop

Selling egine oil, brake fluid and hydraulic oil et al. is a profitable and highly thriving business venture an entrepreneur who is interested in making money from the oil and gas business value chain should consider. The fact that vehicle owners subject their vehicles to servicing at regular intervals creates a market for lubrication oil products. In recent times, there is an increase in the lubrication oil production sector as it is one business you can readily go into with the hope of making great profit. The various needs of lube oils in homes, organizations, factories and industries just cannot be overemphasized because the population of people who have mechanical need for oil have continued to increase over the years. So, for you to start out in this trade, have an expert carry out good feasibility studies.

26. Start Manufacturing Cooking Gas Cylinders

Another profitable and thriving oil and gas-related business that an entrepreneur who is looking towards investing in the industry should consider starting is to go into the manufacturing of cooking gas cylinders. There is indeed a large market for cooking gas cylinder. As a matter of fact, households no longer rely on just one cylinder; they prefer to have one or more backups. This is indeed a capital intensive kind of business. It also requires loads of expertise to be able to stay afloat in this type of business.

27. Start a Filling Station Construction/Building Company

Another lucrative business in the oil and gas business value chain that an entrepreneur should consider starting is filling station construction/building company. It is important to state that you can only successfully start this type of business only if you have the required training, experience and technical skills. The fact that investors are investing in filling station business means that there will always be a market for engineers who are into the construction of filling stations.

28. Go into the Retailing and Supply of Pumping Machines

If you have visited a gas station/filling station before, you will notice that the means of retailing fuel, diesel, gas and kerosene et al. is via a well calibrated pumping machine. This goes to show that there is a market for pumping machines.

29. Health and Safety Trainings for Oil and Gas Workers

Another thriving and profitable business in the value chain is health and safety training for oil and gas workers. If you have the required background (experience and qualifications) to train on health and safety, then you should consider starting an organization that trains oil and gas personnel. In point of fact, health and safety is taken seriously in the oil and gas industry simply because of the risk and hazard that workers in the industry are subjected to in a bid to carrying out their jobs.

30. Manufacturing and Sale of Oil and Gas Machines and Equipment

Manufacturing and sale of oil and gas machines and equipment is yet another thriving and profitable oil and gas related business that an investor who is looking towards starting a business in the industry should consider. Oil drilling and exploration equipment, pumping machines, casing and pipe stacking and handling equipment, pumps, slush, oil and gas rig, gauges and meters, valves, actuators, regulators, cranes and lifting equipment, hazardous area electrical equipment and several other equipment and machines are marketable. So, if you are looking for a business to start in the oil and gas industry, then one of your options is to go into the manufacturing and sale of oil and gas machines and equipment.

31. Welding Services for Oil and Gas Companies

Another profitable and thriving business in the oil and gas industry that an entrepreneur who is looking towards starting a business in the industry can successfully start after acquiring the required training is to offer welding services. Welding is one of the services that are needed in the oil and gas industry to deliver precision welding jobs. So, if you are looking for a business to start in the oil and gas industry, then one of your options is to provide welding services for oil and gas companies.

32. Oil Farm/Depot

Imported fuel as stated above are stored in tank farms. Most oil marketers don’t own tank farms and, as a result, always need to store their petroleum products in other tank farms. With a large operating capital, you can construct a tank farm for the sole purpose of leasing it out to oil marketers who bring in petroleum products.

33.Open a Training School/Institution

There are very few colleges and universities that offer specialized training in the oil and gas sector. Starting an institute focused on the oil and gas industry is a good idea. Choose a niche, hire trained instructors, lease property and provide a robust curriculum.

34. Sell Equipment

The oil and gas industry uses lots of machinery to carry out their activities. You can buy or fabricate equipment targeted at a sector. The business is lucrative and requires lots of investment in money, technical knowledge and testing.

35. Supplying Safety Equipment

Every sector of the oil and gas industry needs lots of safety equipment. Safety is a major concern and a priority in the business. The companies need to buy equipment regularly. This is where your company comes into the picture. You can buy safety gears from major manufacturers and supply companies in the industry.

36. Insurance

The industry is very hazardous so they need proper insurance cover. You can hookup with an insurance company as a sales representative. You make money through the payment of commissions. The more insurance premiums you sell, the higher your profit.

37. Retail Kerosene

Kerosene business is profitable and has a huge market. People use kerosene to cook meals and light fires.

38.Oil and Gas Enterprise Software Application

Technology companies are equally not left out as they can build tech solutions specifically targeting the oil and gas industry, and license the software to companies in the sector.

39. Oil and Gas Exploration

Oil and Gas exploration is capital intensive and not for the faint-hearted. You need to get an exploration license or block. Exploration involves lots of demographic data, drilling and experts in exploration. You can also secure contracts from other oil companies to use your drilling equipment.

40. Cooking Gas Reseller Shop

Liquefied petroleum gas (LPG) market (popularly known as cooking gas) is expected to grow by fifty percent in the near future due to the wide adoption of LPG as a source of energy for cooking in residential areas, replacing other traditional cooking fuel such as charcoal and firewood.

The first option to go into the LP Gas business is to set up a retail shop in highbrow areas. Location is a key driver to success in starting cooking gas reseller shop. To start this LP gas business, you need at least 22 to 35 pieces of gas cylinders (preferably 15Kg and 6Kg gas cylinder), regulators and hose, and weighing scale. You will buy the cooking gas from major dealers/superdealers and resell them to households in your target location.
I often wonder how they make a profit seeing that there is intense competition in this business. But the best part is that, as the number of the household switching to this fuel increase, demand increase and more customers arise.

41. Offer Legal Services

There are legal practitioners who are well-vested in the business of oil and gas. This set of lawyers are specialized in oil and gas law, and they are making the most out of life in the industry. What they do is to offer legal advice to those in the industry who desire their services. This aspect of business opportunity in the oil and gas industry, according to findings, is a well-acknowledged service and it is a lucrative job for lawyers in the oil and gas industry, and that the job is reserved only for lawyers. So, lawyers, this is an opportunity in the oil and gas industry for you.

42. Start a Crude Oil Refinery

Tanzania import millions of tons of refined petroleum products annually. By building a crude oil refinery using limited stock feed supply in Tanzania, you will not only reduce the amount of petroleum products import in the country but also cater to the booming consumer demand by providing Tanzanians with affordable petrol, diesel, jet fuel and other petroleum products.
Setting up a crude oil refinery requires a huge startup capital, but it is very profitable business if you can pull up resources to start this business.

43. Host Industry Events and Conferences

If you don’t have the massive capital to venture into those expensive oil and gas businesses but you have passion for the oil and gas industry, you may consider putting together industry events and help professionals and companies learn about new development across the industry and build relationship that are valuable for career and business development.
If your event can attract relevant decision makers in the industry, you will make handsome money from attendees and sponsorship from companies who are looking for visibility and exposure across the oil and gas industry.

I hope this helps

+255(0)655376543 or Hussein.boffu@tanzaniapetroleum.com

 

 

A Sample Business Plan for Starting and Running Industrial Training Institution in Tanzania

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Executive Summary

AFRI Training Limited will be a training and development company in Dar es Salaam, Tanzania that offers training services to experienced and newly hired personnel to EPC Contractors,  pipeline operators, operators, mining companies and construction companies, with skills and knowledge required to succeed in the natural, construction and infrastructure sector.

This business plan will be used to define the scope of our services, as well as a means of gaining the necessary investment to open the company. It will also be used continually  in the evaluation of AFRI Training Limited’s mission, goals and objectives.

The key to success for AFRI Training Limited is the ability to market effectively,  creating high-quality learning environment where people enjoy themselves, and hiring qualified  and experienced instructors to aid in the running of our courses.

The discoveries of massive natural gas in Tanzania, along with the resulting investments in infrastructure such as ports, oil and gas pipelines and renewable energy projects, have created a significant demand for local workers in Tanzania. The sad reality is that operating companies find it difficult to attract highly qualified local people for implementation of the projects in the region.

AFRI Training Limited hasave equip itself in this challenge and has assembled a strong team of qualified and knowledgeable instructors to fully satisfy the needs for highly qualified workers by developing workers and moving them from just local level to world class professionals and industry leaders.

AFRI Training Limited is projecting  a modest net profit in its first year  of operation with this increasing steadily  by the end of the third year.

Company Summary

AFRI Training Limited is a new manpower development company that provides training services to new to experienced and newly hired personnel to EPC Contractors,  pipeline operators, operators, mining companies and construction companies with skills and knowledge required to succeed in the natural, construction and infrastructure sectors.

Company Ownership

AFRI Training Limited will be duly registered as a limited liability company financed partially by direct owner investment.

Mohamed Aboud: Owner and Managing Director; will own 45% of the company.

The other limited partners will own   30% and 25%.

Mission 

The mission of AFRI Training Limited is to develop and transform local workers from just being users to be world-class professionals and industry leaders.

Our purpose is to move the local industry professionals from just users and followers to ex-pat experts and to professionally independent focal point which will produce local leaders of the industries, and they will able to lead the industrialization phases execution accordingly.

Vision

AFRI Training Limited is seeking to be a training hub in East Africa by providing training that meets industry standards and requirements.

Objectives

  • To achieve a substantial sales revenue during the first year of operation.
  • Increasing sales modestly  during the second year of operation.
  • Increase customer base by 25% by the end of the third year.

Keys to Success

Effective Marketing: We will market AFRI Training Limited as a distinguished name in Tanzania and we will do it creatively so that our services  will reach each of our market segments.

Knowledgeable and Experienced Trainers and Management: By providing trainees with knowledgeable and qualified staff who show genuine interest in the participants, clients will be confident that AFRI Training Limited will meet all their manpower development needs and requirement.

Up-to-Date Curriculum:  By offering an up-to-date industry curriculum, students, employers and the society can be confident that the program meets the quality standards that produce highly qualified workforce.

Table of Contents

Executive Summary

Objectives

Mission

Vision

Company Summary

Company Ownership

Start up Funding

Products and Services

Market Analysis

Market Segmentation

Competition

Competitive edge

Marketing Strategies

Management and Personnel Plan

Financial Plan

Get the Full Version Now

Make a payment of US $200 (TZS 400,000) through Tgo pesa, M-pesa to any of these numbers

  1. +255768183677
  2. +255655376543

Once your payment is done, send an SMS to +255768183677or +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com The moment we receive your email or SMS, and we confirm your payment, the eBook will be delivered to your email address (in PDF format) within ten minutes. You can then download it and read it on your Smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

7 Steps Involved in Starting a Profitable Petrol Station Business in Tanzania

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The growth demand for fuel due to the county’s economic growth and expansion of transportation sector create ample opportunities for the petrol station investments in Tanzania.

 

Starting a petrol station in Tanzania requires careful planning and adherence to regulatory requirements. Here are some steps to consider:

1. Research and Planning:
– Conduct market research to assess the demand for fuel in your chosen location.
– Identify potential sites that are accessible, have sufficient traffic, and meet safety requirements.
– Analyze the competition and their pricing strategies.
– Estimate the initial investment and ongoing operating costs.

2. Legal and Regulatory Requirements:
– Obtain the necessary licenses and permits from the relevant government authorities, such as the Energy and Water Utilities Regulatory Authority (EWURA).
– Comply with safety and environmental regulations set by EWURA and other relevant agencies.
– Register your business as a company or partnership with the Business Registration and Licensing Agency (BRELA).

3. Secure Financing:
– Develop a comprehensive business plan to present to potential investors or lenders.
– Explore financing options such as loans from banks or financial institutions or seeking out private investors.

4. Land Acquisition and Construction:
– Identify and acquire suitable land for your petrol station, ensuring it meets all legal and safety requirements.
– Design and construct a fuel station layout that includes fuel pumps, tanks, convenience store, restrooms, and other necessary facilities.
– Seek out experienced contractors and professionals to handle the construction process.

5. Equipment and Supplies:
– Purchase high-quality fuel dispensers, tanks, safety equipment, and other necessary hardware from reputable suppliers.
– Establish relationships with fuel suppliers to ensure a reliable and consistent fuel supply.

6. Staff Hiring and Training:
– Determine the required staffing needs, such as fuel attendants, cashiers, and security personnel.
– Advertise and conduct interviews to hire qualified employees.
– Provide training on safety protocols, customer service, and daily operational procedures.

7. Marketing and Operations:
– Develop a marketing strategy to attract customers, such as offering competitive pricing, loyalty programs, or various payment options.
– Install clear signage to promote your petrol station.
– Establish partnerships with local businesses to attract more customers.
– Implement efficient inventory management systems and maintain proper records for fuel stock and sales.

Remember, it is crucial to consult with professionals, such as legal advisors, financial advisors, and experienced petrol station operators, to ensure compliance with the specific requirements and regulations in Tanzania.

Feasibility Analysis on How to Start Your Own Profitable Wholesale Petroleum Products Business in Tanzania

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The current market of petroleum products in Tanzania is $1.77 billion, growing at the annual rate of 15 percent.

With continued economic activities in Tanzania, this growth rate is likely to accelerate in the near term.

Although there has been series of natural gas discoveries in the past 10 years and small gas production in Tanzania, the demand for energy is growing fast and this demand can’t be covered by liquefied natural gas (LNG), new natural gas field development or alternative energy initiatives.

The best way to meet Tanzania’s huge energy demand is the combination of these sources of energy, including petroleum products.

So, no matter how much is imported, more is needed to meet the ever-growing energy need in the country.

The wholesale petroleum products business is so lucrative that aspiring entrepreneurs who are passionate about benefiting from petroleum product wholesaling can jump in to sell to an already available market.

The best part of selling petroleum products in Tanzania is that you are not cajoling people to buy products they don’t intend to buy like multi-level marketers do.

You are serving people who can’t do without your products.

What is Petroleum Products Wholesaling and How does it Work?

Now that you know that there is a huge and profitable market for petroleum products in Tanzania with endless potential growth, let us have a look at what petroleum products wholesaling business is and how it works in Tanzania.

The wholesale petroleum business is nothing new in Tanzania.

Well-know oil brands like Total, Puma Energy (previously Oil BP) etc. are all petroleum wholesalers (popularly known as oil marketing companies). These companies are all foreign.

Over the last few years, several great brands that are owned by Tanzanians started to emerge in the market. You already know brand names like Lake Oil , Afro Oil, and many more.

These companies engage in importing, storing and trading petroleum products to commercial consumers as well as to end users through their retail petrol stations outlet. There is a large upfront investment needed to get tanks, trucks, training, certification and products if you pick to follow these route.

However, there is an exiting and profitable market for independent petroleum wholesalers who operate without their own specific retail brand name.

These wholesalers sell petroleum products to transport companies, mines, farmers, colleges and schools, factories and to some unbranded or privately-owned petrol stations. Some independent wholesalers trade petroleum products to land-locked countries such as Burundi, DRC Congo, Rwanda and Uganda.

The best part of this is that Tanzanians can now actively participate and reap rewards from petroleum products wholesaling. As an independent petroleum wholesaler, your task is to go out and look for customers. Once you get an order, you will relay the order to suppliers and arrange delivery from the supplier’s depot to customers.

I would strongly recommend you target large customers who have the financial muscle to pay you in advance before the delivery.

Also, you have to negotiate with suppliers.

Profit Analysis (How much does independent petroleum wholesaler make in Tanzania?)

There is no limit to the amount of money that you can make in the wholesale petroleum business. It depends on your efforts, commitment and your marketing skills or creativity.

Since the wholesale petroleum products price is regulated and like any other commodity, petroleum products price tend to fluctuate regularly due to exchange rates, international benchmarking or fluctuating oil price in the global market.

Therefore, this tends to affect the profit margin in this business.

But a realistic profit margin that independent petroleum wholesalers make is TZS 60 to 67 per liter.

That means for only for only 100,000 liter per month, a petroleum wholesaler will be able to earn around TZS 60 x 100,000 liters = TZS 6, 000,0000.

Keep in mind that the transportation cost (distribution cost) are added in the price.

How to Become a Petroleum Products Wholesaler in Tanzania

Business Plan:

The wholesaler petroleum products business needs strategic planning to start.

To be completely transparent with you, most Tanzanians do not understand the value of a business plan. They only request for business plan when they want bank loan or they engage in business competition.

While it is vital to prepare a business plan before you start business in market, the emphasis of business plan is essentially as a plan to enter the oil and gas industry.

As an independent petroleum wholesaler, you will compete with wholesale petroleum companies that have huge financial capacity and highly specialized and technical staff.

Your wholesale petroleum business plan will act as a roadmap to reach your business objectives and give you a clear picture on how to compete well in the market.

Register your company:

Get your limited liability company registered with the Business Registration and Licensing Agency (BRELA).

Get EWURA Approval:

The Energy Water and Utilities Regulatory Authority (EWURA) is the government agency that regulates the downstream petroleum product sub-sector in Tanzania. You have to get a wholesale petroleum license that allows you to sell petroleum products to bulk customers.

Keys to Success

Merging:

To ensure a good profit margin, pick a supplier who will offer you high-quality products at competitive rates

Marketing Skills:

As I mentioned earlier, you compete with petroleum wholesalers who have huge financial muscles and talented technical team.

So, employing the best marketing strategies will help you to compete well in this industry.

Want to Start Your Business in Tanzania’s Oil and Gas Sector? Here’s How

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Have you ever wanted to start your own business in the oil and gas sector in Tanzania?

If you answer yes, then it’s a wise decision to pursue.

Tanzania’s oil and gas sector is another name for wealth. To verify my words, plan a visit to the Oyster Plaza building in Masaki, Dar es Salaam, where there are a lot of oil and gas companies’ offices. You will be shocked once you see Mercedes Benzes, BMWs, and all kinds of expensive cars in the parking areas outside the buildings.

This is a living testimony that they make huge money from the oil and gas industry.

The simple truth is that oil and gas entrepreneurs are super busy. They have only two options: either to take a flight for a meeting abroad or to deal with clients. But if you are lucky to meeting them even for 10 minutes, you will be amazed at their lifestyle.

And the reasons they make that huge money is because oil and gas products are fast-moving commodities in the world. The demand for oil and gas end-product and by-products are huge in Tanzania and across the world.

Tanzania has discovered 57.25 trillion cubic feet of natural gas. But according to the US Geological Survey, the country still has potential natural gas reserves up to 441 trillion cubic feet solely in the coastal region, so more gas discovery might be forthcoming.

My friend, oil and gas resources are wealth. The oil and gas sector has turned ordinary and poor people into extraordinary, wealthy people.

The best part of this industry is, the earlier you start, the better. Don’t wait until 2020 to enter the market, because a lot of international guys and only a few groups of Tanzanians are smiling to the bank with money coming from the industry.

I am not saying this to impress, but I want you to start benefiting from the huge gas discovery in our land.

Instead of being proud that you are in the country blessed with huge natural gas resources, now you should know how to monetize these resources and reach your mountaintop.

But don’t get me wrong, this is not a get-rich-quick scheme. To make good money in this industry, it requires a long-term commitment and building a strong relationship with clients. And just like anything worth having, it takes effort.

Are you interested in starting business In Tanzania’s oil and gas? Here are the requirements:

1. Find A Niche

Tanzania oil and gas is huge, and there are multiple routes to break into this industry. So, the first things you should identify are business activities that you have proven capabilities and capacity to do well.

I meet a lot of entrepreneurs who want to do all trades in the industry. But that’s not for you. Because you won’t succeed if you want to engage in all the trades at once.

To succeed in this sector, you have to put 100% of your energy into one business activity. And once you are doing well in that business activity, that’s when you diversify.

Finding a niche starts by identifying products or services you want to render in the industry.

Here are some of the business activities you could decide to do in Tanzania’s oil and gas sector:

  1. Become an oil operator. You will set up a company that searches and extracts oil and gas resources out of the ground. You might hear it often called Exploration and Production Company. It is capital intensive because it requires advanced technology, equipment, machinery, and highly trained manpower with expertise and experience in extracting oil and gas resources. But it yields solid profit if you manage to go on it.
  2. Offering mechanical services (e.g. welding and fabrication services.)
  3. Catering services (e.g. feeding oil and gas workers or pipeline construction crew on the campsite.)
  4. Logistics and transportation services.
  5. Offering oil and gas tools and equipment (e.g. pipes, valves fittings, drilling bits, casing pipes, etc.)
  6. Selling drilling chemicals, corrosion inhibitors and oil and gas materials (e.g. barite, bentonite, sodium chloride, uniform, coveralls, safety boots, gloves, etc.)
  7. Finance and insurance services.
  8. Legal and IT services.
  9. Supply of office materials.
  10. Engineering procurement and construction management.
  11. Wireline services, direction drilling services, well drilling services, maintenance services, etc.

And the list goes on.

2. Register With The Business Registration And Licensing Agency (BRELA)

Once you have identified the services you want to render in the industry, the next step is register with BRELA.

This is imperative because no individual is allowed to bid in the oil and gas sector. It’s only for registered companies. So, do business in Tanzania without getting into a legal trouble. You should register a business name or limited liability company with BRELA.

Registering with BRELA is fast, easy, and cheap, if you meet their qualifications. Here are the requirements to get registered with BRELA:

  1. Memorandum and article of associations.
  2. List of shareholders and directors (their names, address, and date of birth.)
  3. Share distribution.
  4. Share capital.
  5. Name of the company secretary.

3: Get Necessary Licenses And Permits

Now that you have registered your company with BRELA, and BRELA has given you a certificate of incorporation, the next requirement is getting licenses and permits.

But permits and licenses vary depending on the kind of oil and gas activity you intend to do.

If you want to be an oil operator; that is, you buy a gas block for extracting oil and gas resources, the agency responsible for such permit is Tanzania Petroleum Development Corporation (TPDC).

If you want to be a contractor (those who want to provide engineering, construction, mechanical services, and other technical jobs), you shouldyou’re your permit from the Contractor Registration Board (CRB).

For suppliers and consultant, get a permit from the Regional Trade Office.

Bonus: For entrepreneurs who want to setup a lubricant (engine oil) or petrol station business, get a license from the Energy Water and Utility Authority (EWURA).

4. Register With Oil And Gas Companies You Want To Work With

Now that you have a license to operate in Tanzania oil and gas sector, the next step is to register your name with international oil and gas companies as a vendor (contractor or supplier.)

5. Win Your First Contract

The most challenging task in the Tanzanian oil and gas industry is getting your first contract. This is because nobody wants to be the first customer. But sometimes you need only one customer to grow fast in the industry.

To grow fast in the industry, alliance, partnership, and joint venture across the country with experienced international oil and gas contractors is necessary.

Attend conference trade shows and join Tanzania oil and gas associations.

This will enable you to learn how to do business with large oil and gas companies in Tanzania and increase your contacts.

What Are You Waiting For?

Now you know the requirement to  start  the oil and gas business in Tanzania. If this interests you then it is time take all necessary steps to make this reality.  You can do this if you commit yourself to your own success.

Does it Take Rocket Science to Succeed in the Oil and Gas Sector in Tanzania?

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Think back for a moment.

What do you imagine when someone mentions the oil and gas sector?

Businessmen worth billions? Oil barons? The government?

Let me also ask: what do you think it takes to succeed in the oil and gas sector in Tanzania?

I have some good news for you.

It’s not by having a huge capital, neither by offering the most perfect products, nor by even having a lot of contacts in the industry.

Sure, it does help, but not always.

Supposing you want to climb Mountain Kilimanjaro (the tallest mountain in Africa), would you go climbing yourself or get an experienced guide who would lead you to the summit?

It’s the same in the oil and gas sector, too.

To succeed in Tanzania’s oil and gas sector, you need to find experienced people who have succeeded in the sector, people who are willing to guide you.

Once you can do that, you can be sure that when you follow their steps, you’ll succeed.

There’s a catch, though.

A Guide For a Million Dollars

Yes, you heard me right.

That’s how much it takes to get an experienced person in the oil and gas sector to guide you.

Imagine consulting your mentor at $200 per hour. I’m just estimating low. Some will charge you $500 per hour. Some, a thousand dollars.

Imagine that. O-N-E T-H-O-U-S-A-N-D D-O-L-L-A-R-S.

Multiply that by a minimum of three hours per day.

Multiply that by a minimum of three times per week.

Multiply that by four weeks in a month.

(You would have learned much in a month, but still, you won’t be able to stand on your own yet. You need a minimum of six months to a year to learn all it takes.)

Multiply that by a minimum of six months.

Here’s the breakdown for a $500 per hour consultation lasting three hours for three times a week, and for six months:

$500 * 3 hours * 3 times per week * 4 weeks in a month * 6 months = $108,000

That’s a whooping sum of money. And you can bet your money that you’d have made ten times that amount in six months.

But can you afford it?

For you, that’s like a million dollars.

An Alternative Guide For a Few Bucks

But what if I told you that you can learn how to start an oil and gas supply and services business in Tanzania without annoying anybody?

What if I told you, you can save a ton of time on getting a guide, on how to get deals, on how to prepare acceptable prices (quotation), and on winning contracts and supplies?

What if I told you can save a lot of money in discovering the main area of business opportunities in the oil and gas sector in Tanzania, the list of goods and tools you can start to supply, and how to register your business as a supplier or contractor with various oil and gas companies in Tanzania?

If you would like to sell products or offer services to the oil and gas sector and make a large profit margin, I encourage you to download our guide titled, “How to Recognize Potential Business Opportunities in the Oil and Gas Sector in Tanzania.”

In this guide, you will discover:

  • How to start an oil and gas supply and service business in Tanzania. Everything about planning your business, market analysis, and financing your business.
  • How to become a contractor or supplier, including licenses and permit you to need to get started with the oil and gas supply and services business.
  • A roadmap on how to recognize potential business opportunities and how to be noticed and considered by oil and gas firms.
  • How to present your goods and services to oil and gas companies.
  • How to get deals and win contracts. You will learn how to prepare and submit an acceptable bid or proposal.
  • How to raise money for your supply or contract.
  • A list of goods you can start to supply to oil and gas companies.
  • The main area of business opportunities in the oil and gas sector in Tanzania.
  • Tips to survive in Tanzania’s oil and gas sector.
  • More interesting businesses opportunities in Tanzania’s oil and gas sector.
  • List of oil and gas companies that are searching for oil and natural gas in Tanzania.

…and many more.

I’m not asking you for a million dollars. Not $10,000. In fact, I’m not even asking for $100.

Download this guide now for TZS 30,000 now.

To buy the book, make a payment of TZS 30,000 through Tgo pesa, M-pesa to any of these numbers:

+255689955711
+255655376543
+255653702878

Once your payment is done, send an SMS to +255689955711 or +255655376543 with the following details:

Your full name.
Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com The moment we receive your email or SMS, and we confirm your payment, the eBook will be delivered to your email address (in PDF format) within ten minutes.

You can then download it and read it on your Smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Meet the Author

Hello, my name is Hussein Boffu, and I’m the author of How to Recognize Potential Business Opportunities in the Oil and Gas Sector in Tanzania. I’m also the author of How to Start and Run a Profitable Petrol Station Business in Tanzania. I’m also the founder of TanzaniaPetroleum.com

I am an entrepreneur specializing in the oil-and-gas supply chain. For quite some time now, I’ve been consulting a lot of businesses, both local and international, regarding starting a business in Tanzania’s oil and gas sector.

I have been approaching and talking to executives, and have been selling goods and equipment to various oil-and-gas companies in Tanzania.

The Complete Guide for Just a Token

To buy the book, make a payment of TZS 30,000 through Tgo pesa, M-pesa to any of these numbers:

+255689955711
+255655376543
+255653702878

Once your payment is done, send an SMS to +255689955711 or +255655376543 with the following details:

Your full name.
Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com The moment we receive your email or SMS, and we confirm your payment, the eBook will be delivered to your email address (in PDF format) within ten minutes.

You can then download it and read it on your Smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

7 Opportunities in the Uganda-Tanzania Pipeline Project and How to Participate

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The East African oil pipeline (or the Uganda-Tanzania pipeline is the talk of the town now. Not only in East Africa but all over the globe.

The construction of this pipeline is officially on. Social and resettlement planning services have been undertaking it in Tanzania.

The sad reality is that people don’t know about the business opportunities available in the project.

More and more people keep wondering what the opportunities emerging in this project are and how they can be part of it.

“Do they offer equipment or provide services?” they ask themselves.

If you are among these people seeking to do business in this projects but have no idea how to get started, then no need to worry.

This article shows you some opportunities available in the project and how you can participate so that you can reap a substantial profit.

The Tanzania-Uganda Pipeline Opportunities

  1. Pipes and connection supplies: One of the opportunities in this project is to supply and manufacture seamless tubes and pipes (LSAW) and also supplying steel pipes.
  2. Chemical Supplies: For the construction of the pipelines, there are a lot of specialty chemicals needed, from corrosion inhibitors additives to scale remover to chemicals that reduce paraffin build up. You cannot run a pipeline without these things, and you can get them from China really cheap. Which means your profit margin may increase by 30-50 percent.
  3. Pipeline equipment supplies: These cover all materials that are required in the pipeline transportation system. It includes fittings, valves, scraper traps, insulating flanges, flow tee, pumping station, etc.
  4. Civil engineering works: These include building construction work, construction and maintenance of roads, construction and maintenance of drainage system, etc.
  5. Pipeline inspection services.
  6. Food supply.
  7. Security services.

Are you ready to utilize opportunities in this project? Here is how to grab the opportunities:

1. Identify the decision makers and influencers in this Uganda-Tanzania pipeline project.

The first step in pursuing opportunities in the Uganda-Tanzania pipeline is determining who the decision makers are.

Decision makers are the people who can approve or disapprove your proposal.

No matter how big a company is, there are decision makers who can approve or disapprove documents.

This can be easily achieved by making a list of key players in the project and starting to build long term relationship with them.

2. Demonstrate your experience.

You should demonstrate that you are the right person to execute the project you’re proposing.

You should demonstrate your capability and your experiences in executing similar project.

“What if my business is small and new n the industry?” you may ask.

Well, the answer is pretty simple. You still have a chance to tap opportunities in the Uganda-Tanzania pipeline project.

If your business is small and new, and you don’t have any experience or working history to be taken as references to the service you want to render, you should consider going into a joint venture with an experienced contractor in the oil and gas industry in such bidding venture. However inexperienced, you still have a chance to participate in this work.

You have learned the opportunities in the East Africa pipeline project and you now know how to access them.

If you want to learn more about the opportunities in the Tanzanian oil and gas sector and how you can grab them, click here to know more.

 

3 Major Challenges Affect Your Ability To Sell Into Oil and Gas And How To Overcome Them

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If you are struggling to attract clients into oil and gas, you’re not alone. because that’s happening, Not just to you. But to tons of entrepreneurs  in Tanzania and beyond.

But I have shocking truth for you today. The truth that prevents you from selling in the oil and gas.

The outlined are the truth:

                  

1. Availability of information
The Internet has changed everything. Your prospect has a smart phone, laptop or pad, whatever you call it. But it gives them access to the internet.
So information is at their fingertips. With a click, They can learn everything about your products, services, price, and specification.Even information about you and your business.

The sad reality is that, once they found things they don’t like. They  ignore you offering.

 

 2. Small wallet
Oil and gas companies and business have a small wallet.They cut cost and they want to spend more with less. The is because the economy is unstable right now. And crude oil price drop in the global market has added fuel to fire.  Most importantly, companies are burning with a loaded of tax today.

                

3.  The world is a single village
These days, your prospects can buy to any marketplace. Skype and video telephone has turned the world too small

In Tanzania, example. Many oil and gas companies buy products and services overseas.

So trying to compete in that game is the wastage of time.So how do you stand out?

Perhaps your marketing strategies relied on making more calls, send out a lot of emails. And have face to face presentation.

These approaches are effective.But in today’s oil and gas market, using these approaches you prospect might take longer to respond.

                        How To Overcome These Challenges

Great times of oil boom has gone. So things have changed now in the industry.
But the only thing that  remains  the same  in this sector is, we do business with people we like and trust

However, there’s the smart way. a method that can yield a greater return in the long term.That approach named DIGITAL MARKETING

Digital marketing is when you use the internet to promote your products and services to your high target market.

I often call digital marketing as help marketing. As you don’t do this to push clients to purchase your products and service. But you give them actionable advice about your offering. You show them how your products and service can benefit them.

This build trust and your clients will recognize you as an expert in your area. So if you are offering valves, writes an article about types of valves every engineer should know. If you are selling PPE’s demonstrate how they can benefit your clients. The same way if you offering engineering services.

The reasons this method is effective is, your clients, oil and gas professionals, highly decision makers are online

searching for the solution and valuable information about their business and personal matters. So why don’t you go where they are?

In reality, digital marketing is a new concept in oil and gas, but it increasingly popularity in the industry these days.

So, digital marketing cover everything from email marketing, video marketing, social media marketing.Your online presence

should be part of your sales team that increase your profit margin. But guess what. Having only company website, It won’t pay off.

Do you have an email list? Is your website rank higher when someone searches it on google? Do you provide valuable information about your offering that can help your clients?

if your online presence doesn’t result in you in revenue. Then it’s worthless to your business.

The common sense answer is to focus on getting clients and sales from your website visitors.

How To Start Cooking Gas Distribution Business In Tanzania…..Detailed Reuirements

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LPG Gas Bottles. LPG plant

Cooking gas Image

Cooking gas becomes so popular fuel for cooking.  Have you ever wondered why is everyone using gas for cooking now?.   The answers are pretty simple.

The first thing first, cooking gas is environment-friendly, cook food faster. Best of all cooking gas is very affordable

Cooking gas is also called  Liquefied petroleum gas (LPG)  or simply   “GAS” as everyone calls it.    Cooking gas is made up during refining of crude oil or processing of natural gas.

I don’t want to go deeper into this subject of the formation of Cooking gas.  Let be the story of another day. The topic at hand is how you start, run and make good money selling cooking gas in Tanzania

The market for this product is growing at faster rates. To save forests, government encourage the use of this product. So even people in rural areas are switching from the use of firewood and charcoal.

This business has attracted a lot of entrepreneurs in Tanzania. And cooking gas retail shops are in every street corner.

I often wonder, how do they make a profit with this intense competition. But the best part is that, as the number of the household switch to this fuel,  demand increase and more customers arise.

    Start-Up Money

You don’t need all the money in the world to start up cooking gas business in Tanzania.  With 1,670,000TZSH  you are staring    mid-sized cooking  gas  business in Tanzania

So before we go any further      let look at  budget for starting this business

Gas cylinders (     15kg gas  and 6 kg.  about 20 pieces each size of cylinders) TZSH          1,140,000
Business license   TZSH              80,000
Fire certificate   TZSH          100,000
Hose pipe   TZSH           60,000
Dry powder fire extinguisher 6kg   TZSH           90,000
Miscellaneous   TZH             200,000
Total                                  TZSH          1,670,000      

Read:      How-to-start-video-production-business in Tanzania

How is profitable is Cooking Gas Business In Tanzania

The average profit you can make for selling   15kg cylinder is  TZSH 7000. You buy at a unit cost of  TZSH 47,000 and resell at TZSH 40,000. So if you sell 10   cylinders in a week will make  7000×10= Tzsh70,000. In a month it is possible to make TZSH 280,000

The profit you can make for supplying 6kg cylinder is TZSH  4000. So once you selling 10 cylinders in the week will make you  4,000×10=TZSH 40,000. In a month you will have  a profit margin  TZSH   160,000

That is just an average profit you can make. But I guarantee you 95% profit if you do a good marketing and you sell your item in a good location.

Tips  To Succeed In This Businesss

   

1:Do  home deliveries

Cooking gas is the constant pushing business, so staying back and hoping customers will knock on your door is not a plan. To stand out you should do home deliveries with no extra charges.

Considering you’re starting with limited fund,   so delivering cooking gas to the customer’s doorstep with no extra  costs. might be stressful. But using a cheaper alternative to supply gas can be easily solved the challenge. So  considering using bike instead of car


2:Pick  good marketing strategies

Cooking gas is the personal contact business. So the word of mouth will really work. Approach a friend and family members and tell about your business.  The location is everything. Locate your shop in the area accessible to your target Customers. If you are reliable and you deliver on your promise.  Customers will become a friend of your business.

  Challenges In s  Cooking  Business

1:Fire explosion

Cooking gas is  flammable in nature. That’s can catch fire easily. To stand out, observe gas leakage and fix a problem quickly. Most importantly get fire extinguisher in your store

2:Price volatility

Cooking gas business is the boom and bust business due to the prices fluctuation in the global cooking gas market.  So when the price of cooking gas in the global market drop. It affects the local price as well. This ruins your business as the many customers saves money on buying gas. This will  drop your sales and profit as well.

So,  go out there and make it happen. You will thank me later.

I would love to hear your thought. Leave your comment below.