The Solar Water Pumps Market in Tanzania: Growth, Trends, and Opportunities.

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The market size for solar pumps in Tanzania is estimated to be USD 25 million. Solar water pumps are a lucrative market with a payback period of 4-6 years.

The low productivity in Tanzania’s agriculture sector and the shift toward renewable energy are expected to positively impact the solar water pump market.

The other trend is the government’s willingness and international investors to invest more in agriculture. For example, the Tanzania government has signed an agreement with the World Bank for a grant amounting to USD 4.5 million, which is set to help provide water to citizens.

This is evident that the solar water pumps market presents opportunities to manufacture, distribute and install affordable ones.

East Africa LNG Market: Industry Analysis and Forecast(2022-2030)

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There has been a series of world-class natural gas discoveries in deep water off Tanzania and Mozambique in the last ten years.

Exploration success has raised Tanzania’s profile as a potential supplier of LNG to Asian markets, along with neighboring Mozambique.

With over 214 trillion cubic feet(tcf) of proven natural gas reserves – East Africa has been touted as the next great LNG player.

Of those 214 trillion cubic feet of natural gas, 150 trillion cubic feet were discovered in Mozambique, and the remaining 57 trillion were discovered in Tanzania.

Europe’s interest in African oil and gas in its plan to diversify the suppliers away from the Russian supplier as a consequence of the Russian-Ukrainian war. African LNG will continue to increase in the rest of 2023 and the coming years.

LNG demand is anticipated to grow gradually, with a supply-demand gap expected to develop by 2025.

However, bringing the rest of the new projects onstream will take time, and building all these new onshore and offshore LNG plants.

Forexample, the final investment decision (FID) of long-awaited Tanzania liquefied natural gas(LNG)project is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID. The LNG will be developed in the Lindi, south of the country. And Construction time will likely be five to six years, suggesting the large-scale project could come on-stream around 2030.

Eni’s Marine XII project will not reach its total capacity of 3 million tonnes per year until late 2025.

TotalEnergies of France is not likely to begin commercial operations on the Mozambique LNG project before 2025, and the U.S. giant ExxonMobil will need even more time to launch its Rovuma LNG project in Mozambique since it has yet to reach the FID stage.

The report aims to give you a deeper, more complete understanding of the African LNG market dynamics and structure by analyzing the market segments and projecting the East Africa LNG market size.

Tanzania Lubricant and Blending Market: Growth, Trends, Opportunities, and Forecast(2021-2028)

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Lubricants are important products in terms of ensuring that various machines operate smoothly and do not fail prematurely in order to minimize operational costs in any organization that uses such machines. It is also equally important to ensure that lubricants are formulated, manufactured, handled, and used appropriately to safeguard the given machine’s moving parts that require lubrication and are safely used and disposed of.

In all East African countries, lubricants are either blended/manufactured locally through imported feedstock materials or imported as finished products. In Tanzania, for example, in 2021, 85% of the consumed lubricants were locally blended, and the remaining was imported as finished products. Lubricants consumption continues to increase in almost all countries due relative increase in machines that use lubricants, especially in the automotive and manufacturing industries.

Read also: Tanzania Liquefied Petroleum Gas Market- Industry Analysis and Forecast (2021-2028)

The consumption of lubricants in Tanzania has continued to increase at an average rate of 12% per year, and it will most likely continue to grow.

This report aims to give investors and companies a deeper, more complete understanding of the general overview of the lubricants industry in Tanzania. It covers the regulatory framework and high-level market structure (product importation, consumption, existing players, infrastructure, pricing regime, and industry growth trends).

The profile also covers the required additional cost-effective investment options based on Lubricants import/consumption projections, required facilities codes, standards, estimated investment cost structure, and a list of required equipment/devices for a small lubricant blending and Filling plant, including required permits.

Tanzania Petrol Station Sector: Growth, Trends, Opportunities, and Forecast

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Tanzania imports all its finished petroleum products from outside except Natural gas, which is locally produced from the Southern regions of Mtwara and Lindi. Most of the petroleum products (except Natural gas and LPG) distributed in Tanzania reach the end consumer through retail petrol stations.

The country has been registering steady petroleum product growth yearly, driven mainly by petrol, diesel, and LPG.

However, the rise in penetration of electric vehicles and Compressed natural gas (CNG) in Tanzania to control pollution and reduce high transportation costs for the citizens can slowly displace the demand for petrol stations.

However, the lack of proper infrastructures for compressed natural gas(CNG) and electric vehicles in Tanzania and East Africa are restraining factors of the petrol station market growth in the region.
This is evident that demand for conventional fuel such as petrol, diesel, LPG, and oils will remain for decades. And non-fuel products will become increasingly relevant in supermarkets, garages, car wash, food services, and other ancillary offers.

In general, market dynamics appear to represent growth opportunities for both international and local investors.

The object of this study report is to provide a comprehensive analysis of the general regulatory framework in the petroleum products business, market structure; petroleum products regulatory framework, importation/supply, storage and distribution through retail outlets or petrol stations, number of players in the market, petroleum products and petrol stations growth trends, and pricing mechanism.

It also covers estimating investment in petrol Stations with crucial equipment and devices, applicable codes and standards, and required permits for constructing petrol stations.

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For the complete report, make a payment of $450 (or its equivalent in Tanzanian Shillings TZS 840,000) through our bank account or contact via +255655376543 or. info@tanzaniapetroleum.com and we will devise a payment option for you.

 

Tanzania Liquefied Petroleum Gas Market- Industry Analysis and Forecast (2021-2028)

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Tanzania’s population and the rest of Africa continue to grow yearly, putting excessive pressure and adverse environmental impacts. Population growth continues to increase the demand for cooking energy, primarily derived from biomass (firewood and charcoal). 

In recent years, it is evident that biomass access is becoming increasingly scarce at an unprecedented rate due to the continuous decrease of forests (deforestation) due to trees cutting to produce biomass. In addition, biomass usage generates health diseases, especially respiratory, and reduces the life expectancy of many people living in rural areas where biomass is predominant.        

We all understand the adverse effects of deforestation, which cause climate changes that lead to catastrophic consequences such as drought, floods, storms/hurricanes, etc.                                                                                              

There is, therefore, an urgent need to reverse the ongoing deforestation by providing alternative cooking energy sources and efficient use of energy through technology improvement, such as cooking stoves. 

One of the alternative cooking energy sources that help to eliminate or reduce the health and environmental effects of the use of biomass is Liquefied Petroleum Gas (LPG).        

However, providing alternative energy sources, such as LPG, requires receiving, storage, and distribution facilities investment. LPG is a relatively new source of cooking energy in Tanzania and many Sub-Saharan African countries, and its consumption has been growing exponentially (e.g., in Tanzania, the average annual growth is about 15%).

This growth in LPG consumption has been made possible by relatively limited investment in LPG facilities such as LPG receiving Ship to Shore Terminals, a network of LPG filling plants in some selected regions, and deployment of LPG cylinders used by consumers mainly in urban and peri-urban locations.     

With ongoing accelerated LPG consumption growth, it is evident that the existing LPG facility network will not suffice the expected demand for LPG distribution in Tanzania in the coming years. Based on this growth, it is important that more investment be encouraged from various local and foreign investors to cope with this product’s growing demand. 

It is appreciated that many investors require some preliminary data/information before having an appetite to invest in a particular business/project, and it is true that there are limited investment data/information available today for LPG business, especially on the estimated investment costs proportions/structure as well as codes and Standards compliance.                  

 The Objective of the report is to present a comprehensive analysis of Tanzania’s Liquefied Petroleum Gas Market, including regulatory framework, high-level market structure (product importation, consumption and export, existing players, existing infrastructure, pricing regime, and industry growth trends.

 The profile also covers the required additional investment based on LPG import/consumption projections, required facilities codes, standards, estimated investment cost structure, and list of required equipment/devices for a small LPG filling plant, including required permits.

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For the complete report, make a payment of $984

Energy Sector Opportunity for Consultants in Tanzania and Africa

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The changing face of the energy sector in Tanzania and Africa presents ample opportunities for consultants.

With the increasing energy demand, most energy companies and investors have already started investing and diversifying their businesses for additional income streams and meeting their sustainability goals.

This article exposes you to opportunities for consultants in changing energy environment in Tanzania and Africa.

1.Project reports: Making better-planned decisions for investment or submission to the regulatory authorities requires access to complete and accurate information. This presents several consultant opportunities, including cost estimates, payback period analysis, return on investment, margin, and regulatory and competitive landscape.

2.Petrol station and EV charging Set up. Many investors add new petrol stations to their portfolios and increasing of electric vehicles in Tanzania and Africa; the service of consultancy must be employed in site selection, feasibility studies, installation and maintenance, and project management.

3.Site supervision: Investors want to ensure all site execution is on budget and on time.

4.Government approval and statutory audit. Investors need to comply with local regulations and standards before and during the operation of the projects. The consultant provides insights into relevant laws, rules, and procedures.

4.Data Analytics: The energy sectors have become more crowded and competitive in Tanzania and Africa. This is why data analysis providers ensure that companies and investors understand competition, demand, and customers.

5.ESG and sustainability consultancy. Advising companies and investors on their journey to energy transitions is a growing opportunity in Africa.

Consultancy opportunities also include corrosion control, API plant inspection, non-destructive testing, and inspection services.

Final words
If conducting deep-dive sector research in the emerging energy market consumes you and your team’s time, we have helped several consulting companies with bespoke research and analysis so that their team spends more time on high-value-added tasks.

East Africa’s LPG Sector: Today’s Challenges are Tomorrow’s Opportunities.

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LPG consumption in East Africa has been growing exponentially, especially in Kenya, Tanzania, and Rwanda, where the annual growth has been at least 15 percent.

However, compared to other African Regions, such as North African countries where per capita consumption is more than 20 Kg per person per year, LPG per capita consumption in East Africa is relatively low.’

Kenya is leading at about 6 kg per person per year, followed by Tanzania and Rwanda at about 2.5 kg per person per year and Uganda as well as Burundi having less than 2 Kg per person per year.

Opportunities disguised as challenges

Like in any sector, the challenges have caused low penetration and consumption of LPG in East Africa. Butt the way we are approaching the challenges is by focusing on opportunities.

1.Inadequate investment in LPG infrastructure: This is the first issue in the sector. The projected increase in demand for LPG requires the rapid development of infrastructures, including LPG receiving and storage terminals, LPG refilling plants, LPG cylinder manufacturing facilities, and LPG transportation trucks.

2.Awareness: The beneficiaries’ understanding of the social benefits of using LPG could be higher. The popular misconception among consumers is that LPG is dangerous, highly explosive, and could endanger their homes. The common belief is that gas leakage cannot be detected and hence explode. Also, it is seen as a luxury reserved for the rich. 

3.Affordability: The other issue is managing affordability, including upfront costs for stoves and related equipment can present a large share of poor East Africans. Some companies have turned this barrier into an opportunity by employing the “pay as you go” business model.

4.Subsidy burden. The surging energy price has increased the cost of LPG cylinders in many East African towns. Some African governments like Malawi are in the process of removing VAT on LPG and cylinders to reduce the landed cost of LPG in the country. 

5.Skills Shortage. This skills shortage in the LPG sector presents opportunities for the development and training of LPG installers to ensure installers are trained and certified competent to install gas appliances safely.

In Conclusion

To succeed in this new, changing environment, LPG equipment manufacturers and investors must have a 360° view of the regulatory policies, future demand, costs, and competition in this market.

We have a deep understanding of the LPG sector in Tanzania and Africa: this, combined with in-depth research and analysis, enables us to help business professionals understand the economic and regulatory landscape of the LPG industry.

 

Tanzania Petrol Station Investors Focus on Location, Price, and Services to Stay Competitive

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The petrol station industry is getting more crowd and complex in Tanzania and Africa. How do you move beyond the competition and become the obvious choice in your trading area?

Understanding these three drivers of choice in the petrol station sector will help you remain competitive.

In the petrol station industry, the following are the drivers of choice:

1.Location: Location is the number one driver of choice in petrol stations. Motorists can travel to the next petrol station if it is difficult to see your petrol station site.

You may achieve maximum visibility if you are located on the far corner of the main road intersecting the secondary road.

The optimum distance from the site for a motorist driving at normal speed to have enough time to make a buying decision, slow down his vehicle, and enter the station safely is 250m. Also, barriers such as proximity to junctions, traffic lights, and plot size like small frontage can affect the likelihood of customers visiting your petrol station beyond those barriers.

2. Prices. Like any commodity, fuel is consumed regularly, so the price of fuel is very important to consumers. So consider offering a special discount at your petrol station is critical to improving sales. My research reveals that due to intense competition, most petrol stations in Tanzania sell based on cost leadership and heavy discount.

3. Services. The motorists and customers pay attention to your petrol station’s level of services and experiences. Ensuring safe and clean operation, as well as fast services and employing loyalty cards and free car wash services, is a way to provide an outstanding customer experience.

Why this is Important?
It is very important for the investors considering an expansion plan in the petrol sector to select a suitable location. And the same time, it is clear that remaining competitive on price and services.

 

The Role of LNG in Reshaping the Future of Tanzania

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By Mohamed Mahgoub

Natural gas is a reliable energy source used globally to meet growing energy demands. With increased natural gas consumption over the past few years, Liquefied Natural Gas (LNG)  have become a significant component of urban infrastructure.

Tanzania has started exploring for oil and gas over the last 64 years, and they have the first discovery in 1974 in Songo Songo Island and Minari Gulf. After four years of delay, Tanzania will start the Offshore LNG project in the Lindi area in Southeastern Tanzania. Tanzania continues developing its reserves from offshore natural gas, estimated to be 57.54 TCF and 49.5 TCF away from the coast, referred to as the Specified Energy Platform.

The final investment decision (FID) of the long-awaited liquefied natural gas(LNG)project is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID. The LNG will be developed in the Lindi, south of the country.

Construction time will likely be five to six years, suggesting the large-scale project could come on-stream around 2030.

This LNG project shall also secure more jobs for Tanzanian national capacities. It is not an economic perspective but is the social one as well in how to improve the lifestyle of the Tanzanian people from such supergiant projects.

Tanzania shall consider making such a supergiant project as the inspiration of the Tanzanians that their land is the land of the treasures and attractive for global investment.

I expect Tanzania to develop the education curriculum to seize the opportunity of such a super giant national project, more geoscientists, reservoir, production engineers, and more specialization in the LNG industry.

Send Tanzanian oil and gas specialists in cross-posting with Shell and Equinor companies in their HQ to develop the career ladders of the national capacities.

It is also writhed to admit artificial intelligence applications in the LNG as an upswing industry trend in oil and gas.

Why could Tanzanians not mimic Shell and Equinor as the future African operator to establish such LNG industries with the rest of African countries? Another dimension for investing in such an extraordinary project shall be used as an analog.

Before starting the project by Shell and Equinor, Major Oil and Gas companies globally, it is also imperative to conduct due diligence before the project begins.

Due diligence is a common term for investigating and analyzing a business or organization before a transaction is completed. That due diligence such as financial, legal, operational, and tax due diligence shall be implemented that assure the success of this big national project.

Shareholders seek their interests and a lot of money from such LNG projects. Now EU is focusing on natural gas liquefaction (LNG) from Gabon, Tanzania, and Mozambique; therefore, Africa is feeling such an uptick and will provide 220 billion cubic meters of natural gas in 2040.

Europe’s interest in African oil and gas in its plan to diversify the suppliers away from the Russian supplier as a consequence of the Russian-Ukrainian war. African LNG will continue to increase in the rest of 2023 and in the coming years.

 

Petrol Station Site Location: How to Find, Negotiate and Secure the Best Petrol Station Site For Maximum Profit

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The popular misconception is that if you have land proximity to a highway or main road, you can build a profitable petrol station.

So, Investors buy land and rush into building petrol stations without data-based evidence as to whether the new site is capable of generating sufficient sales for you to open and stay in business

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The other issue is that most investors are too busy, and choosing the best petrol station site location for maximum profit involves significant time investment and much research.

The simple truth is that the location you choose for petrol station operations can make or break your venture.

 

Choosing a poor location is a challenging thing to fix. You can change marketing strategies or your price. But changing your location is quite a different matter.

 

Whether you want to expand your existing operation by adding a new petrol station or searching for your first location, petrol station location research principles are the same.

Decide the Region to Locate Your Petrol Station

When undertaking the task of finding and opening a new petrol station, it is important that you don’t rush into it. Take your time and do great research, and then do more. Some regions have high fuel sales than others.

 

There are areas where there is still low petrol station density (quantity of petroleum products sold through retail stations per the number of existing petrol stations.

 

For example, in the year 2021, the average petrol stations sales density per petrol station was 1,842,089 liters of petrol and diesel, and Dar es Salaam led by having about 3.6 million liters per petrol station and followed by Iringa with about 2.6 million liters per petrol station.

Arusha and Mwanza achieved 2.4 million liters and 2.2 million liters per petrol station, respectively.

 

The regions that had the lowest sales density were Simiyu and Manyara, with 0.44 million liters and 0.48 million liters per petrol station, respectively.

The regions that had the lowest sales density were Simiyu and Manyara, with 0.44 million liters and 0.48 million liters per petrol station, respectively.

Local Fuel Sales Volume Forecast.

Before purchasing a new site or even building a petrol station, you must produce detailed sales
forecasting figures. You need to know whether the new site can generate sufficient sales for you to open and stay in business.

And you can produce fuel sales figures by taking the traffic count. The feasibility of the petrol station location is determined by checking the traffic count on the road in front of you. Determine the quantity and type of cars and vehicles per day passing in your location.

By collecting data, you will estimate the fuel volume you expect to sell in your trading areas and project the monthly fuel volume your location might sell. The method you can use to calculate sales volume in your trading areas are volume extraction, volume estimation formula method.

Characteristics of Good Site Location

 

  1. Traffic flow: The number and type of vehicles passing in your location per day significantly impact your sales volume.

 

  1. Competitors: It is crucial to understand who your closest competitors are in your trading areas and identify their strengths and weakness and what volume they are achieving.
  2. If there are already other petrol stations existing in the same trade area. Identify their financials and what volume they are achieving. This can greatly affect your potential sales.

 

  1. Visibility: How easy is it easy for customers to see the location? Motorists can travel to the next petrol station if it is difficult to see your petrol station site. You may achieve maximum visibility if you are located on the far corner of the main road intersecting the secondary road. The optimum distance from the site for a motorist driving at normal speed to have enough time to make a buying decision, slow down his vehicle, and enter the station safely is 250m

 

  1. Accessibility: Also, check how easy it is for the motorist/customers to see the location. Barriers such as proximity to junctions, traffic lights, and plot size like small frontage can affect the likelihood of customers beyond those barriers visiting your petrol station.

 

 

  1. Key development close to your site. If there is any expected economic development can increase traffic and therefore achieve good profit. Example of key development includes the construction of bus stops, hospitals, schools, etc.