Can I be completely honest with you? Tanzania offers the largest and most growing market for LPG.

The annual LP gas consumption in Tanzania has grown from 5,500 metric tons in 2005 to 145,800 metric tons in 2019.

I don’t think there is anywhere in the world that has a kind of potential for LPG products like Tanzania. The market is crying for new investment.

Tanzania still has one of the lowest per capita LPG consumption in Africa. 

Many opportunities exist for increasing LPG penetration and utilization in the country.

Opportunities are abundant in Tanzania’s LPG value chain for entrepreneurs and investors who are looking to address supply constraints in the domestic LPG market in Tanzania through retail and wholesale distribution, LPG refilling plants, transportation, installation, and LPG bulk storage and operation.

The simple truth is that the initial capital of setting up an LPG plant is high. But with a great business plan, it is easier to secure the cooperation of both investors and money lending institutions.

This article shows you the challenges, opportunities, and requirements of starting an LPG plant in Tanzania

                                              What is an LPG PLANT? 

A Liquefied Petroleum Gas (LPG) refilling plant is a system that can be used either automatically or manually to refill LPG cylinders.

Starting and operating LPG Plant

A person interested in running LPG needs to go through town planning and acquire a land title deed. The next step is to carry out an environmental impact assessment (EIA). And this is done to ensure that the proposed LPG will not cause danger to the environment.

 The National Environment Management Council (NEMC) is the authority that will audit and award you a certificate once you comply with its standard.

You will also need fired department approval. Then you should apply EWURA to get approval to construct a petrol station.

Then should submit all documents to EWURA for construction permit. If EWURA inspectors see that your sites meet regulatory conditions, they will approve the construction permit. Afterward, you may start procurement of equipment and site construction.

 The authority will grant the approval to construct once you fulfill the land use laws and meet all health, safety, and environmental standards.

For investors is advisable to partner with local experts who has good industry knowledge, expertise and who are also versatile with relevant stakeholders.

 Building Requirement for LPG Plant

• LPG pump/compressor shed
• Office Building
• Fireproof filling shed
• Security cabin
• Diesel Generator
• Bore Well
• Electrical system
• Etc

Key to Success

Location is key to success in the LPGas business. You need to conduct a location potentiality assessment to ensure the location will be profitable for your business

Challenges and Risks

One of the biggest challenges in operating an LPG plant in the country is a shortage of qualified people to run the plant. There is simply a scarcity of competent personnel available in Tanzania to run the LPG plant. So when you employ people, you find someone who has little to no training or experience in the LPG operations. So  the risk associated with setting up LPG is having an operator who has insufficient knowledge.

I hope this helps.

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

Demand for food products is huge in Tanzania. No matter how much food products are produced, more are needed to meet the growing population in the country

Every day Tanzanians need to eat. Whenever people gather together, they are going to require food and drinks. Whether is business meeting, wedding or birthday parties.

So if you are looking for a healthy and vigorous business opportunity.

Food products-related business offers substantial rewards today and growth for tomorrow.

This article helps you select the right small food processing business opportunity –one that suits your desire, wants, and income expectation

 

1.Small scale Flour Mill

Maize and rice flour are a major staple food for a large proportion of the population in Tanzania including middle-class families that consume it regularly.

The primary customers for maize and rice flour are supermarkets, shops, schools, institutions, and individuals. 

The flour milling industry in Tanzania is dominated by two big well-established companies who compromise on quality. With access to cheaper raw materials.

 However, by introducing a different kind of packaging and trying to be competitive in packaging and delivery, and developing good business relationships with customers new entrepreneurs can win in the marketplace.

 2. Bakery

Your small bakery processing and sells fresh bread and cakes. By offering fresh bread and cakes you can build a reputation in your trading areas and generate more customers through referral.

 It is advisable to offer a small commission to people who bring in new customers. Depends on the location of your bakery, but primary customers can be households, office workers, and employees at factories.

3.Sunflower oil production business

Availability of raw material and the growing health consciousness of consumer has created a huge demand for sunflower oil in Tanzania. 

The biggest challenge in the sunflower oil business in the country is the production of poor quality and safe oil. Consumers are more health-conscious. 

Ambitious entrepreneurs can build a reputation in the industry by producing high-quality and safe sunflower oil, The primary customers for sunflower oil are individual households, groceries, supermarkets, schools, hospitals.

4.Set up a dairy processing plant

Your dairy plant would be producing food that is safe to eat such as milk, yogurt cheeses primary customers are including women, young people students, travelers, office workers, and supermarkets. 

Entrepreneurs should evaluate the site’s potentiality before construction. Locating your diary plant in an urban area close to the customer is key to success. However, In Tanzania, you will be required to set it up in an industrial area. 

5.Small Scale Fruit Processing Business.

There is a high demand for soft drinks and juices are huge in Tanzania. As small-scale fruit manufacture, you will be buying crops from small-scale farmers, storing them until they are processed. The biggest challenge in this venture is the unpredictable supply of raw materials. Because crops and fruits vary according to weather, rainfall, and plant disease.

                                   

Final Words

A person who is interested in developing business opportunities in the food processing industry in Tanzania should acquire as much knowledge as they can.

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

It breaks my heart that most people see only the negative of this country and continent at large. 

They look at our country through political leans. They see political instability, corruption, unemployment, and debts.

This makes it easier to overlook the business opportunities that are also here and growing.

As the country experience rapid growth in population, it becomes the future for many industries. Opportunities are abundant in Tanzania and Africa. We have to get beyond the negative perception to see opportunities.

Successful entrepreneurs in Tanzania and Africa are those who provide products and services that are useful and needed. And are also offers solutions that reflect our peculiar challenges.

Here are products and services with potential for future growth in Tanzania and Africa.

1.Meet the growing need for better education.

The growing market for youth in Tanzania is creating an expanding demand for education. Parents in Tanzania and Africa want to ensure their children inherit their accomplishments rather than their problems.

 They are willing to pay a premium for better-private education services. The growing need for education in Tanzania covers everything from preschool to college.

2.Capitalize on  unreliable electricity supply .

One of the most pressing problems in Africa is the lack of a constant supply of electricity. When the power fails it can mean loss of your work on your computer. Lost food on your refrigerator. Loss of medical equipment at hospitals.

The lack of reliable supply creates opportunities for entrepreneurs to offer generators, inverters, solar panels, solar-powered laptops, etc

3.Help people access clean drinking water.

Helping people access safe water is the biggest opportunity in Tanzania and Africa. Entrepreneurs looking to tap into this market can offer a wide range of products and services including supplying water pumps, water filters, low-cost irrigations pumps, water drilling services, and more

4.Exploit the growing demand for fuel.

The growing population and rising automobile ownership have increased the demand for fuel consumption. No matter how much is imported, more fuel is needed in Tanzania to meet the growing population and to service our economy. 

Ambitious entrepreneurs can meet the fuel need in the region by starting their own petrol station business, setting up an LPGas business, and venturing into a lubricant oil distribution.

5.Maintenance, repair, refurbishments, and renovations.

Many infrastructures and facilities in Tanzania and Africa are twenty or more years and require regular maintenance or replacing. The good news is that there are many facilities in Tanzania. From gas plants to oil storage tanks, oil and gas pipelines through power plants to underground oil storage tanks. So there is are good market in maintenance, repair, and renovations and contractors may find unlimited work.

6.Capitalizing on increasing residential development.

There is increasing commercial and residential development in Tanzania. This influences the demand for building materials such as concrete blocks, cement, and so forth. But if you are going to construct a building, you will also need a roof, steel roof, PVC and PPR pipes, and steel products.

7.Serving the starving crowds.

Every day Tanzania needs to eat. Maize flour(popularly Sembe and Dona) is a major staple food for a large proportion of the population in Tanzania including middle-class families that consume it regularly. Ambitious entrepreneurs can meet the market need by offering the highest quality food prod products including maize flour, rice-wheat sunflower, milk, or meat.

8.Leverage environmental concern and sustainability.

In Africa, there is a growing market for offering products and services that are environmentally friendly. This has led to opportunities in clean cooking fuel such as liquefied petroleum gas (cooking gas), oil recycling, and more.

For example, Increasing awareness of the use of LPG as the best alternative to firewood and charcoal, and the government’s ambition to scale up the use of LPG across the nation, it will lead to an increase in LPG demand to homes, schools, hotels, and restaurants.

9.Logistic and Transportation

A high percentage of goods are transported by road trucks, so innovative professionals like you can launch their own logistics and transportation company and take advantage of this growing industry in Tanzania. The initial cost for setting up your own road transportation business may be high but with a great business plan, it is easier to secure the cooperation of both investors and banks. It’s prudent to start small, and then you may expand your company as your sales grow.

10.Set up a training center.

The biggest challenge in Africa is training shortage. And not a skills shortage. In terms of manpower Tanzanians and African are as brilliant as any other part of the world. They only need the training to deliver excellence.

Employers in specialized industries complain that the market does not produce qualified employees. This creates opportunities for training local workers and moving from just followers to industry leaders and independent professionals

11.Soap and detergents.

People in Tanzania and Africa want soaps to wash clothes. They also need detergent like shampoo to fulfill their internal desire to look good.

                                            Final Words

A person who is interested in developing business opportunities in Tanzania should acquire as much knowledge as they can.

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

Opportunity

Maize flour(popularly Sembe and Dona) is a major staple food for a large proportion of the population in Tanzania including middle-class families that consume it regularly. The rapid population growth in the country creates substantial demand for affordable staple foods.

Executive Summary

EMMA FOODS limited company plan to build and operate a milling plant in the Shinyanga region which will have the capacity to process 50 tonnes per day of maize flour (sembe and Dona). Our biggest competitive advantage is quality foods products and state-of-the-art processing. EMMA FOODS will introduce its products at 20% off the wholesale prices during the first month to promote supermarkets and stores to buy the products

The company is equipped with modern equipment and professional staff in production, sales, and delivery to processing and package and sell maize flour.

EMMA FOODS will engage in supplying high-quality maize flowers at affordable prices that will appeal to both high and middle-class Tanzania’s population.

Business Description

The company will engage in buying, and processing maize grain from small-scale farmers and local vendors to produce maize flour and resell it to consumers at affordable prices.

Company mission 

To unlock the potential of nature and improve the quality of life and nutritional status of Tanzanians by providing the best quality mills at affordable rates for all.

Company Vision

To offer highest quality food prod products including maize flour, rice-wheat sunflower.

Our Products and Services

EMMA FOODS offers the following products and services:

• Maize flour
• Rice products
• Sunflower oil
• Farm equipment rental

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Look around your city, and you will discover many fuel filling stations are running. Driving around the highway in your town, you will see more than one fuel filling station under construction or already serving the community.

The simple truth is that the establishment of a new fuel station is on the increase in Tanzania. This is a living testimony of how the energy industry contributes to Tanzania’s economic development and employment creation.

The proliferation of businesses in the energy industry businesses, careers and lives.

Employment Creation.

The establishment of petroleum infrastructures is a vital source for livelihood in the cities and country.

It is estimated an average service station creates employ over eight people. Large service stations present an opportunity to offer complementary businesses like garages, coffee shops, restaurants, supermarkets, and ATMs employ more than 40 people and bring the services closer to the community.

During the fuel station construction, There are also income-generating opportunities, such as the procurement of local contractors and equipment.

Education and Training

Retail service station owners, primarily that works in collaboration with prominent international oil marketing companies,  provide training to staff on how to handle petrol station equipment, customer services training safely, and gain knowledge of the petroleum products, which help them build and expand their understanding that they can use for the rest of their lives

Wealth creation and entrepreneurship

Covid-19 and in the uncertain times ahead make sense to have a particular investment that guarantees appreciation. When you construct a fuel filling station, start LPGas, or set up a lubricant oils shop, you sell necessity and not luxury. Clothing shops are empty.

Hotels and restaurants are running away. Look again around your city. How are many fuel filling stations closing this time? You will see that all petrol stations are working. Where most businesses are declining, the petrol station business continues to expand rapidly. But why is that? The answer is pretty simple.

This business thrives even in a receding economy. Regardless of the status of the economy, people drive. Commercial and transport vehicles will look for a place to fill their car tank with fuel.

So, a petrol station will never run out of business in any economy. A petrol station makes a considerable income, and more and more people have found out about this lucrative business and jumped into it.

Although investment opportunities in the petroleum sector are lucrative, investors should conduct a feasibility study before pouring their money and resources into the project to reduce risk.

The feasibility study will outline whether there is a market need, identify infrastructure requirements, determine the project costs, includes a financial analysis to assess the economic feasibility of the proposed project to determine whether desired return on investments could be reached.

Furthermore, when you step out in your quest for capital, both banks and investors will ask for your business plan. So it would be best if you had a comprehensive petroleum business plan.

Given the importance of energy in a growing economy like Tanzania. Energy companies plays an essential role in improving the availability of the products, contributing to economic development in Tanzania through wealth and employment creations.