If you rack brains to find perfect business and investment opportunities in Tanzania. Investing in downstream petroleum products is a better option.

With economic growth and an increasing mid-class population, the demand for oil and gas-related products is increasing in Tanzania.

This article explores lucrative business opportunities you can start in Tanzania anytime you ready.

1.Start a Petrol Station

If you’re brainstorming in order to find a perfect business idea in Tanzania and the 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 on every street corner because they make an insane profit.

Consider this:

A petrol station located in a highbrow area of the city with lots of traffic could sell between than 5,000 liters to 25,000 liters in a day. At least, assuming two-thirds of customers decide to keep malice with you, you’ll still 2,000 liters. Depending on the supplier whom you source fuel from.

The profit margin per liter ranges from 100 to 210 per liter.

So, if you sell 2,000 liters a day will make you TZS 100 × 2000 = TZS 200,000. In a month, you will have a profit margin of TZS 30 × 200,000 = TZS 6,000,000.

That figure can vary widely, depending on where the petrol station is located. And the supplier from whom you source fuel from.

For example, if the profit margin from your supplier is TZS 200 per liter. So for that rate, the profit margin per day would be TZS 200 × 5,000 = TZS 400,000.

Again, in a month, that will make you 30 × TZS 400,000 = TZS 12,000,000. So, this is why petrol stations are on every street corner because they make good money. So, everyone wants to jump into this business.

 

Related Project::A Sample Business Plan for Starting and Running a Road Logistics and Transportation Business for Fuel/Petroleum Products in Tanzania.

2.Setting your own lubricant blending/Manufacturing Plant

The demand for lubricant oil such as blended motor oil, brake fluids lubricating greases, and other oil-based additives is huge in Tanzania. That’s why the biggest marketers like Total and Lake oil recently have set up their own lubricant manufacturing facility.

So set up your own Lubricant manufacturing company in Tanzania can be a profitable venture. Although there are several lubricant oil manufacturing companies in Tanzania. But with a good distribution network, quality products, good marketing strategies, and sufficient start-up a new lubricant trading company can win a competition.

3.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.

Related Project: A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited.

4.Lubrication Oil Retail Shop

Selling engine 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 a 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 has continued to increase over the years. So, for you to start out in this trade, have an expert carry out good feasibility studies.

5.Oil Farm/Depot Storage Services

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.

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6. 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 the depot to their desired destination.

I would recommend you start by transporting petroleum products to landlocked countries like Uganda, Rwanda, Congo DRC, etc. Many transporters in this business transit fuel to neighboring countries such as Uganda, Kenya, Rwanda, and Congo DRC because there is an unlimited market and is more profitable for transit fuel to the neighboring countries than relying on transporting petroleum products from depots to filling stations locally across the country.

7. LPG Re-filling Plant/Center: 

I’d recommend this to anyone with financial muscle. As a refilling center, you will purchase bulk LP Gas and sell to distributors and consumers. It’s capital intensive and the total project cost for setting up a refilling center in Tanzania is TZS 250 million to TZS 300 million.

8. 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 sizable amount of capital to set up a gas cylinder manufacturing plants in Tanzania.

                                      I hope this helps. Here at Tanzania Petroleum we are committed to champion extraordinary outcome by accelerating start, run and growing your business

 

The demand for retailing petroleum products – including diesel, petrol and kerosene – in rural areas and small towns in Tanzania is growing at a fast rate.

The growing demand of retail petrol stations in those areas is driven by increasing economic and farming activities.

The farmers constantly require diesel in huge quantities in order to operate their windmill to pump water for their livestock as well as crops, and to operate their tractors.

There is a proliferation of trucks that used to transport crops in rural areas that rely on diesel or petrol. The fishers constantly require fuel to power their fishing boats.

Furthermore, due to limited access to electricity, farmers install generators to operate their windmill to pump water for their crops or to power their homes. Also, locals in those areas rely on kerosene to light up their homes.

Most important is the emerging mode of transportation. There are tricycles – or boda-boda, as everyone calls it – and this has increased the demand for retail petrol stations in rural areas and small towns in Tanzania.

Currently, most rural areas and small towns have good vehicle traffic/volume but the surprising truth is that for decades fewer petrol stations have been set up there.

It is estimated that, in some small towns, locals, farmers and vehicle owners have to travel more than 100 kilometers to the nearby town’s petrol stations to get access to fuel.

But with new facilities, roads and factories being built in rural areas, setting up a petrol station over there can get you a high return on investment.

In reality, there is a great demand of petrol station in rural areas and small towns. Even the Energy, Water and Utilities Regulatory Authority (EWURA) has lessened the requirements for starting petrol stations in rural areas to reduce investment cost, start-up capital and project cost.

The aim is to encourage investors to set up petrol stations and meet the huge demand of fuel in rural areas.

Retail Petrol Station Industry Outlook

Although competition has increased over the past few years, fuel sales continue to increase annually. The most intense competition is in larger urban centers, because most entrepreneurs are looking to have fuel stations in the city centers and more bustling urban parts of Tanzania. This leaves opportunity for independents in smaller rural settings and small towns.

So, setting up your small petrol station in up-country areas and small towns is a successful model for entrepreneurs looking to benefits from the fuel station business in Tanzania.

Introducing………………

A Detailed Feasibility and Project Report on Starting a Profitable Small Petrol Station with Two Pumps in the Rural Areas and Small Towns in Tanzania

Get the Full Version Now

In the full report you will learn the following:

  • What is the structure of a small petrol station business?
  • What is the petrol station industry size and growth?
  • What is the outlook of petrol station industry?
  • What are the licenses, permits and certification required for setting up small petrol stations in rural areas?
  • What is the working capital required for setting small petrol station in Tanzania?
  • What are the built-up requirements for small petrol stations in Tanzania?
  • What is the total project cost for setting up a small petrol station business in Tanzania? (This includes the breakdown of such start-up capital and project cost for setting up petrol stations?)
  • What are the items of equipment and machinery required for setting up a small petrol station business? And what are their prices and where can you buy them in Tanzania?
  • What is the minimal size of land required for setting up a small petrol station with only two pumps?
  • What is the profit margin and income for a small petrol station business?
  • What are the requirements as regards utilities, electricity, water, salaries and overheads for setting up a petrol station business?
  • What are SWOT analysis for setting up small scale petrol station in rural areas and small towns in Tanzania?
  • What are the personnel (manpower) requirements for starting a small petrol station business?
  • What are the market opportunities and market assessment for setting up a small petrol station business?
  • What are the petrol station industry trends?
  • Who are the suppliers of petroleum products/fuel, machines and equipment for setting up your small petrol station business?
  • What are the projected balance sheet for petrol station business?
  • What are the marketing strategies for small petrol stations in rural areas or small towns in Tanzania?
  • Since a petrol station is prone to theft, how do you control theft in your business, so that you can see good returns on daily sales?
  • What are the challenges associated with running a small petrol station business, and how to overcome them?
  • What is the financial projection for small petrol stations?

 

For the complete report for setting up and running a LP Cooking gas business  in Tanzania, make a payment of $100 (or its equivalent in Tanzanian Shillings TZS 200,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255768183677 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 report will be delivered to your email address (in PDF) within fifteen 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.

 

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019.

Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Related Project: A Detailed Feasibility and Project Report on Setting up and operating a Profitable Petrol Station in Tanzania

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with effective marketing and supply strategies, building close client relationship as well as providing complementary services, the newly-established LP Gas retailer like you can still be profitable and assured of recovering its entire investment.

We have written a business plan for  a business Plan for setting up and operating an LP Gas (Cooking Gas) Distribution/Retailing Business in Tanzania:

LP Gas business plan in Tanzania help not only translate your ideas into business and your dreams into reality. It may also used for bank loans, to write business concept note and as a road map  for running your business and should be used as ongoing tool to manage your business and win competition.

A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited

Tanzania offers the largest and fastest growing market for the petrol station business. This could be credited to various reasons such as the growth of the automotive sector, good level of economic development and regulatory encouragement.

In the automotive sector, Tanzania has seen a surge in the number of vehicles in the streets from the late 2000s to date. Roads and parking areas in the cities are congested with vehicles of various types, sizes, brands and model.

In addition, the introduction of the new mode of transportation including motorcycle (popularly known as boda boda) and tricycles (also known as Bajaji) provides growth opportunities for individuals and companies interested in starting and running a petrol station business in Tanzania.

Furthermore, the development of roads and urban cities, and the proliferation of infrastructural projects have increased the demand for heavy-duty commercial vehicles which drives the demand for fuel (petrol, diesel, kerosene and lubricants).

Also, government regulations regarding burning the importation of substandard and fake lubricants drives the growth demand of lubricant and engine oil in Tanzania.

There is still a power-failure problem in the country; so, people depend on generators—both diesel and petrol-powered. They have to buy fuel from petrol stations.

People all over the country need fuel for their cars, trucks, tricycles, motorcycles and other machines and all these vehicles and generators run on diesels or petrol that you can setup in your own fuel station and get huge income selling it.

With the growing demand for petroleum products in Tanzania, there is a proliferation of petrol stations that facilitate intense but healthy competition between each dealer.

But new entrepreneurs with strategic locations, good marketing plans and sufficient start-up capital can win competition in this business.

Introducing………..

 

This report answers the following questions:

  • What is the structure of petrol station business?
  • What is the petrol station industry size and growth?
  • What is the outlook of the petrol station industry?
  • What are the three ways to start an oil and gas business in Tanzania and what is the best (and easiest way) to start a petrol station business?
  • What are the licenses, permits and certification requirements for setting up a petrol station business?
  • What is the working capital for a petrol station?
  • What is the total project cost for setting up a petrol station business in Tanzania? and the breakdown of such startup capital and project cost for setting up a petrol station?
  • What is the equipment and machinery required for setting up a petrol station business? What are their prices and where can you buy them in Tanzania?
  • What is the total size of land required for setting up a petrol station business?
  • What is the estimated profit margin and income for a petrol station business?
  • What are the requirements of utilities, electricity, water, salaries and overheads for setting up a petrol station business?
  • What are the personnel (manpower) requirements for starting a petrol station business?
  • What are the market opportunities and assessment for setting up a petrol station business?
  • What are the petrol station industry trends?
  • Who are the suppliers of petroleum products/fuel, machines and equipment for setting up a petrol station business?
  • What are the three ways to become a dealer with oil companies in Tanzania?
  • What is the projected balance sheet for a petrol station business?
  • What are the project financials of petrol stations?
  • How does one set up a petrol station using the brand name of major oil companies in Tanzania like Total PUMA, etc.?
  • What are the marketing strategies that will make huge number of drivers, car users, and motorists to call at your station to buy your fuel?
  • Since a petrol station is prone to theft, how does one control theft in this business so that good returns on daily sales can be achieved?
  • What are the challenges associated with running a petrol station business, and how does one overcome them?

Get the Full Version Now

To purchase the complete feasibility and project report for starting and running a profitable petrol station business   contact us via this number: +255655376543.

 

Alternatively, send an email with the above details to info@tanzaniapetroleum.com.

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

Road Transport of Fuel/Petroleum products is a profitable business in Tanzania and East Africa that need a lot of strategic plan to start. 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 road transport of fuel business’s  mission, goals and objectives.

Executive Summary

ARA transport is an indigenous energy, logistics and transportation service company duly registered and it has obtained a license to transport petroleum products across the country. The company is formed following the increasing demand of petroleum products (example, premium motor spirit, diesel, kerosene, and other petroleum products) in Tanzania. The company primarily focuses on transporting petroleum products from oil depots to the desired destination across the country.

The company has drivers who are helpful, courteous and fully trained to handle hazardous materials. They have licenses so there will be no need for company’s training. Our trucks will be clean, well-maintained and inspected regularly for safety and comfort.

At ARA Transport, our philosophy is one that emphasizes service in the real sense of the word and the realization that effective communication is key factor in our business. The company also realizes that in this competitive market, flexibility and professionalism maintain that leading edge.

The biggest strength of ARA transport is its personnel since experienced and trained drivers who can take care of transportation of petroleum products from depots are the heart of this business.

Mission

The company’s mission is to provide reliable, timely and safe logistics services in the downstream sub-sector of the oil and gas industry.

Vision

To become the leading energy logistics service company in its area of operation by offering services with superior customer value.
To be a reliable partner and act proactively to fulfill all the needs of its customers by delivering tailored petroleum products logistics services.

Objectives of the Company

  • To purchase two more trucks/fuel tankers in the next three years.
  • To extend its operation by acquiring the license to transit petroleum products to the landlocked countries including Uganda, Tanzania, Kenya, Rwanda and DR Congo after three years of operation.

Services Description

Road Transport of Petroleum Products: ARA Transport is engaged in the road transport of petroleum products from the oil depots to the desired destination across the country. The company transports all petroleum products such as: AGO (Automotive Gas Oil – Diesel), PMS (Premium Motor Spirit – Petrol), IK (Illuminated Kerosene), Jet – A1, HFO (Heavy Fuel Oil), IDO (Industrial Diesel Oil) etc.

Competitive Edge

Human resources: We believe that drivers are the life (blood and oxygen) of logistics and transportation business. Your drivers can make or mar your transportation business, so recruitment will be a top company priority. We will make sure that drivers are licensed and well-trained to drive fuel/petroleum tankers/trucks.

Maintenance: Our research has shown that most of the haulage and logistic companies do not carry out a regular maintenance of their vehicles. They do maintenance when their truck breaks down. AT ARA Transport, we shall promote the life span of our truck by ensuring and putting in place systematic maintenance routines. As our business grow and more trucks are bought, we will hire an in-house mechanic to handle maintenance and repairs.

Business Ownership and Structure

Promoter: Khalid Magombeka
Khalid is passionate about the oil and gas industry and the logistic and transpiration business. For the first three years of operation, Khalid will handle many responsibilities as Managing Director/ Truck supervisors / Accountant and head of marketing. After three years of operation, the company will be in the expansion stage and will recruit people to handle these responsibilities.

Business advisor: Said Saleem has spent over 10 years in downstream sub-sector of the oil and gas industry in Tanzania. He owns five petrol stations in Dar es Salaam and he’s also the managing director of Saleem Transport Limited which transports petroleum products in Tanzania and neighbouring countries including Rwanda, Burundi Congo DRC etc.

GET THE FULL VERSION

To get the full version of this business plan which includes the breakdown of startup cost, SWOT analysis, marketing strategies, management plan and financial plan, reach out to us via Hussein.boffu@tanzaniapetroleum.com or +

Maputo, 5th October 2020 – On 28-29 October 2020, ENH and dmg events will co-host the Mozambique Gas Virtual Summit, held with the support and participation of MIREME and INP.

The virtual summit will feature keynote speeches from H.E. Valige Tauabo, Governor of Cabo Delgado, Estêvão Pale, Chairman & CEO, ENH, Carlos Zacarias, President, INP and Jos Evens, Lead Country Manager, ExxonMobil Mozambique.

“It is our great pleasure to announce that the Mozambique Gas Summit will be held virtually this year. Through the online platform the industry will be able to reunite, debate, and network with one another, enabling leaders from across the international gas community to share ideas and provide key market updates to the rest of the world.”  Said Estêvão Pale, Chairman & CEO, ENH.

The two-day program boasts presentations from the key players in the Mozambique gas community, and will feature discussions on creating a regional gas masterplan, and an update directly from the newly created Mozambican Local Content Task Force on their mandate, plans and priorities for the energy sector moving forward.

Discussions will also be afforded to the status of project development in Mozambique.

The Mozambique LNG and Rovuma LNG projects will both involve major investments into the local business community over the coming years, with the Total-led project expected to invest $2.5 billion of work dedicated for local businesses, whilst creating more than 5000 jobs during the construction phase of the project.

“In spite of the current pandemic, we have seen the largest private investment in Africa, involving an array of lenders and including around 20 banks. This is extremely significant milestone, and a testament to the investability and excitement around projects being developed in Mozambique.” said Nina Febo, Project Manager, Mozambique Gas Virtual Summit.

The Virtual Summit will offer unparalleled access to Mozambique’s key energy sector decision makers, whereby attendees will be able to network with them virtually, gain access to exclusive content and even visit trade booths in the virtual exhibition.

“We’re creating a platform to help re-connect the Mozambique energy community. The Mozambique Gas Virtual Summit has some extremely innovative features, including a match-making algorithm that will suggest companies for you to meet with based on your business needs. We have seen a real renewed appetite from the local and regional community to reconnect following an extended period of restrictions and the virtual platform will provide this opportunity to meet with existing clients, whilst also seeking out new collaborative ventures.” Added Ms. Febo.

dmg events, along with its partner ENH, invites all key stakeholders seeking to collaborate and access business opportunities in Mozambique and the region to join the Mozambique Gas Virtual Summit, which will reconvene all of the key players from across the Mozambican energy value chain. Attendees from across the world will have the opportunity to network and host private meetings, in addition to resuming collaborative discussions at a critical point for the industry and Mozambique’s gas sector’s future.

-ENDS-

For further information, do visit www.mozambique-gas-summit.com.

About the organiser: 

dmg events  
dmg events leading organiser of live, hybrid and virtual events and a publisher of trade magazines.
We aim to keep businesses informed and connect them with relevant communities to create vibrant marketplaces and to accelerate their business across multiple platforms.
dmg events organises more than 80 events across 25 countries, attracting over 425,000 attendees and delegates every year.  The company’s portfolio of products includes many industry leading events such as ADIPEC and Gastech energy events.
Founded in 1989, the company is headquartered in Dubai, UAE, and is a wholly owned subsidiary of the Daily Mail and General Trust plc (DMGT, www.dmgt.com), one of the largest media companies in the United Kingdom.

For further information, please contact:

Roshan Jan-Mahomed
Roshanjanmahomed@dmgevents.com
07593 441 504

Can I be painfully honest with you?

No, not thank-God-he-told-me kind of honesty, where someone points out a gutter in front of you in the middle of the night.

It’s brutal, bitter, and downright ugly.

Have you noticed it? In your city, boutiques are empty, restaurants are closing up, and even the streets are getting emptier by the day.

Yet, economic activities are still going on.

But what you will also notice, if you look hard and well, is that some businesses are also starting up.

To be specific, here are trending business opportunities:

  1. Provide goods and services to oil and gas companies in East African crude oil pipeline( EACOP)Projects.

The implementation of key infrastructure projects in the oil and gas is boosting the demand for high-quality local suppliers of goods and services.

On the horizon, the East African Crude Oil Pipeline project which will be constructed to transport crude oil from the oil fields in Hoima, Uganda to Tanga port in Tanzania holds the promise of thousands new jobs and services 

And you know why?

People are thinking of ways to tap into the opportunities that abound in the project. Maybe you have been thinking the same, too.

Why not? When it made newspaper headlines, we were told that:

The host countries(Uganda and Tanzania) have signed host government agreement (HGA)

The pipeline will cost $3.5 Billion USD, increase direct foreign investment by 60% in Uganda and Tanzania, and facilitate oil and gas development in the region.

The project is expected to start March on 2021

“Wow!” I hear you say. “Oil and gas here I come.”

But how?

How do you tap into the opportunities? Do you just sit back and hope you get called to participate?

 Or you start knocking on office doors of oil and gas companies’ managers and hope they have a stake in the EACOP project?

 This is the perfect time to position yourself to win the competition and meeting the growing demand for goods and services in the project 

2.Start Petrol Station business 

Petrol stations line every street corner. More people are consuming more fuel.

Consider this:

· People are buying more cars. Look at all the cars on the highway—thousands of them—they buy fuel from petrol stations.

· There is still a power-failure problem in the country, so, people depend on generators—both diesel and petrol powered. They have to buy fuel from petrol stations.

· Aside from that, we’re no longer in the Stone Age where people cook with logs of wood. Now, they simply buy kerosene from a petrol station for their cooking. Those who don’t use kerosene use cooking gas, which they buy from petrol stations.

There’s an available market to sell to in all the above. Besides selling petrol, diesel, kerosene, cooking gas, and engine oil, those petrol stations:

· Offer car washing services.

· Offer car repair services.

· Have a restaurant and, in some cases, a bar.

· Have a shopping mall.

· Even rent out vacant offices to companies like DSTV, telecommunication companies, etc.

So this is your opportunity to start a petrol station.

3.Start LP Gas (Cooking Gas) retailing Business: 

There has been a substantial rise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019. Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to an increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with our effective marketing and supply strategies, building close client relationships as well as providing complementary services, the newly-established LP Gas retailer can still be profitable and assured of recovering its entire investment.

4.Set up Industrial Training Institution:

The massive 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. These developments present an opportunity for economic growth and employment boost across the region. 

The sad reality is that this opportunity is hampered by a lack of availability of enough skills among the local population. The limited availability of technical vocational education and training (TVET) that is sufficiently matched to industry requirements causes the skills gap to grow at the local level.

Start industrial training and development business and transforming the local population from just followers to be world-class professionals and industry leaders is key to support continued economic development in Tanzania.

Bonus

5.Start Rice and Maize Flour Processing Plants

Maize flour(popularly Sembe and Dona) is a staple food for a large proportion of the population in Tanzania including poor and common men who use it regularly. With Tanzania’s, rapidly growing population means more demand for affordable staple foods. The maize milling plant business is a profitable business opportunity for entrepreneurs.

I hope this help.

At Tanzania Petroleum, we are committed to helping people make their entrepreneurship dreams come true in this most valuable oil and gas industry in Tanzania.

If you want to build a petrol station, location is a key determinant whether your petrol station business will fail or succeed.

If you make a mistake in location, the business is already a huge mistake.

For your petrol station business to be set up, you need to set up in the best location in your target city. The biggest mistake people make is this: they just purchase land and rush into building petrol station without doing a little homework.

They spend a lot of money, time and effort building a petrol station only to find that the station is selling a little volume from the market in trading areas.

The petrol station business should have the advantage of being in an easily accessible and highly visible location.

No matter how good your marketing strategies are, if you build a petrol station in a non-strategic location, you will make little sales.

If you want to see your petrol selling huge volume of fuel in the marketplace, you need to evaluate the marketability of your area. Before you take the next big step of purchasing or build a petrol station, you should evaluate the marketability of your site.

You need to determine whether there is a market for selling petroleum products as well as who the target customers are. You need to determine who your competitors are and how you will stand out in this competitive business. You need to determine how much volume the station is expected to extract in the trading area.

Read also:7 Steps Involved in Starting a Profitable Petrol Station Business in Tanzania

Before you pour your blood, sweat and tears as well as a lot of time and resources into building a petrol station, you should evaluate your location and do a little homework to know whether your location will sell before you go into the trouble of building petrol station.

You will need to answer “Yes” to this question: “Will a petrol station sell in this area?”

It’s just a matter of finding answer to these questions:

  • What are future development plans in your area? And what are the economic activities that may attract traffic?
  • How much volume of diesel, petrol and kerosene the station is expected to sell in trading areas.
  • Traffic count or estimated quantity of cars and vehicle per days.
  • What are the competitive advantages of nearby petrol stations?
  • What are the land parameters to comply with and the legal requirement?

You should already have much of this information if you have been doing a solid home work. Evaluate your land. If your evaluation reveals that your location will not sell or will not sell well enough, let it go or find a way to make your location profitable.

You can outsource this task to a consultant like us to evaluate the marketability of your area and compile a report that will help you whether your petrol station will sell or not.

I hope this help.

At Tanzania Petroleum, we are committed to helping people make their entrepreneurship dreams come true in this most valuable oil and gas industry in Tanzania.

Imagine you start a business with much lower risk. Even if the business failed, there would still be something tangible to hold on to.

Businesses that thrive even in bad economy.

One of such businesses is the filling station business, otherwise known as a petrol station business.

Consider this:

You are not marketing any product because consumers already abound.

You would surely make a lot of income doing side businesses like car wash, mechanic workshop, and restaurant.

Big companies like DSTV MTN ,BANKS etc. rent office space from petrol stations. And we haven’t talked about shopping malls, too.

You see, everywhere you turn under the petrol station business, there are opportunities waiting for you to grab them.

But how do you start this lucrative business in Tanzania? Here is a step-by-step guide to starting your business in Tanzania.

1. Study the market:

The first thing you will need to do is to determine the requirement and break down the cost for starting a petrol station business in Tanzania.

What equipment, machinery and skilled labor will be required to start a petrol station business? Who are your potential suppliers and where will you buy fuel? You will also need to know what regulations, certification you will need to comply with.

2. Write a business plan:

This is a comprehensive document that proves on paper that a viable market exists for your petrol station business and that you can sell enough of products and services at your planned petrol station to be profitable and attractive to potential backers. Your petrol station business plan provides the main strategies and tactics you will use to make your dream come true. It also valuable in promoting  your business to bankers, investors and  business communities.

Your petrol station business plan should comprise executive summary, vision and mission statement, objectives, industry trends, market analysis, SWOT analysis, marketing plan, operational plan and financial data and projections.

Read also:      A Sample Business Plan for Starting and Running A Petrol Station in Tanzania

3. Evaluate the marketability of the location:

If you want to build a petrol station, location is a key determinant whether your petrol station business will fail or succeed.

If you make a mistake in location, the business is already a huge mistake.

For your petrol station business to be set up, you need to set up in the best location in your target city. The biggest mistake people make is this: they just purchase land and rush into building petrol station without doing a little homework.

They spend a lot of money, time and effort building a petrol station only to find that the station is selling a little volume from the market in trading areas.

The petrol station business should have the advantage of being in an easily accessible and highly visible location.

No matter how good your marketing strategies are, if you build a petrol station in a non-strategic location, you will make little sales.

If you want to see your petrol selling huge volume of fuel in the marketplace, you need to evaluate the marketability of your area. Before you take the next big step of purchasing or build a petrol station, you should evaluate the marketability of your site.

You need to determine whether there is a market for selling petroleum products as well as who the target customers are. You need to determine who your competitors are and how you will stand out in this competitive business. You need to determine how much volume the station is expected to extract in the trading area.

Before you pour your blood, sweat and tears as well as a lot of time and resources into building a petrol station, you should evaluate your location and do a little homework to know whether your location will sell before you go into the trouble of building petrol station.

You will need to answer “Yes” to this question: “Will a petrol station sell in this area?”

It’s just a matter of finding answer to these questions:

  • What are future development plans in your area? And what are the economic activities that may attract traffic?
  • How much volume of diesel, petrol and kerosene the station is expected to sell in trading areas.
  • Traffic count or estimated quantity of cars and vehicle per days.
  • What are the competitive advantages of nearby petrol stations?
  • What are the land parameters to comply with and the legal requirement?

You should already have much of this information if you have been doing a solid home work. Evaluate your land. If your evaluation reveals that your location will not sell or will not sell well enough, let it go or find a way to make your location profitable.

You can outsource this task to a consultant like us to evaluate the marketability of your area and compile a report that will help you whether your petrol station will sell or not.

4. Put up and raise startup capital:

The petrol station business in Tanzania is a lucrative one that needs a sufficient startup capital. It is likely to cost TZS 225 million to TZS 1 billion. You can get it from investors, borrowing money from banks, friends, or savings.

Not surprisingly, inadequate capital is the leading cause of the petrol station business failure.

5. Launch your company:

You will need licenses from regulatory authorities including EWURA, NEMC, OSHA etc. You will need to purchase equipment such as storage tanks, pumps and start construction of your petrol station.

6. Sell the products:

Now you have all permits and licenses and you have built your petrol station, the next stage is to start marketing your petrol station to make sure you attract enough traffic to reach your sales goals.

7. Keep up with the market:

You need to be abreast on what is going on in retail petrol station business in Tanzania so that you can stay ahead of competitors.

I hope this help.

At Tanzania Petroleum, we are committed to helping people make their entrepreneurship dreams come true in this most valuable oil and gas industry in Tanzania.

LP Gas (cooking) gas is lucrative and competitive business in Tanzania. The good news is that entrepreneur with quality products, a good marketing plan and sufficient start-up capital can win competition in this business.

This already-written  LP Gas business plan in Tanzania help not only  translate your ideas into business and your dream into reality. It may also used for bank loans, to write business concept note and as a road map for running your business and should also be used as ongoing tools to manage your business and win competition in this  business.

EXECUTIVE SUMMARY

Overview

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019. Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with our effective marketing and supply strategies, building close client relationship as well as providing complementary services, the newly-established LP Gas retailer like Quick Gas can still be profitable and assured of recovering its entire investment.

The Company

Quick Gas Limited will be a newly-established LPG (Liquefied Petroleum Gas) distributer/retailer in the Kasulu District of the Kigoma Region in Tanzania to cater to the booming LP Gas (cooking gas) demand.

Quick Gas Limited will be duly registered and will obtain a trade license to operate as a Liquefied Petroleum Gas (LPG; popularly known as cooking gas) distributor/retailer in Tanzania. Quick Gas Limited will be equipped with a strong team with both technical and business background in managing all aspects of an LP Gas business: organizing, financing, marketing, promoting products and services, and solving technical and organizational problems.

Products and Services:

Our products and services include:

  • LP Gas (cooking gas) in 6kg, 15kg, 30kg and many other volumes.
  • LPG cylinders of various sizes, colour and design.
  • Cookers and fittings such as pipes, gauges etc.
  • Site installation services.
  • Home delivery of products and services.

Customers/clients:

Quick Gas will deliver LP Gas to household, industrial and commercial customers in Kasulu District in the Kigoma Region and will expand to other location of the city after three years of services.

Competition

Quick Gas Limited will have both direct and indirect competitors but our competitive advantage is that majority of the population will opt for LP Gas rather than buy firewood or charcoal, and there are more customers to go round.

Financial Considerations

The financial projection of this business plan is attached as an spreadsheet file.

Objectives

The underlying objectives of QUICK GAS limited is stated as follows:

  • To be known as a top quality, safe and reliable LP Gas delivery service provider in Tanzania.
  • To achieve and preserve a high gross profit margin.
  • To expand to other location within the city after three years of service in the Kasulu district of Kigoma Region.
  • To achieve 25% of the market share within the first three years.
Form of Business: Limited Liability Company
State of Business: Start-up (new business)
Managing Director: Lawrence Mambo
Business Development Consultant: Hussein A. Boffu
Opening Hours: Mondays to Saturdays: 7 AM – 7 PM.

Sundays: 12 PM – 6 PM

Get the Full Version Now

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

EXECUTIVE SUMMARY

  • Overview
  • The Company
  • Products and Services
  • Customers/clients

BUSINESS DESCRIPTION

  • Mission
  • Vision
  • Objectives
  • Our Values
  • Keys to Success

PRODUCTS AND SERVICES

MANAGEMENT TEAM

MARKET ANALYSIS AND TRENDS

  • Market Research
  • LP Gas Import in Tanzania
  • LP Gas Industry Trends
  • LP Gas Industry Outlook
  • Our Target Market

COMPETITOR ANALYSIS

  • Direct Competition
  • Indirect Competition
  • Competitive Advantage

SALES AND MARKETING PLAN

OPERATIONAL PLAN

  • Opening Days/Hours
  • Location
  • Setup Cost
  • Machinery/Equipment Requirement

SWOT Analysis

PEST Analysis

FINANCIAL PLAN AND PROJECTION

 

For the complete business plan for starting and running a LP Cooking gas business  in Tanzania, make a payment of $150 (or its equivalent in Tanzanian Shillings TZS 300,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255768183677 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) within fifteen 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.