Apply Startupper Challenge of the year by Total Energies

/in /by

Are you a young entrepreneur? Do you have a project or an idea that you care about? Is it an innovative project that meets a social or community challenge in your country or for the planet?

TotalEnergies is launching the 3rd edition of Startupper of the year Challenge across the whole African continent.

Applications have just opened and  this may be the challenge for you!

Would you like to learn more about the rewards and benefits?

The winners will receive: –

  • Financial support from TotalEnergies –
  • Media visibility
  • Personalized coaching

The Grand Winners for the whole African continent will be invited to Paris to showcase their project.

Two types of candidates can participate:

  • -Those that have created a startup or business less than 3 years ago
  • -Those that have a business creation idea they would like to explore further If you think you have a project or startup that can have an impact, submit your project now!

Apply now

Five Predictions For Tanzania’s oil and gas industry in 2022

/in /by

It’s hard to predict what is going to happen next year. But one thing we all believe is that tomorrow will be different, there will be some changes or advancements as well. I have been following Tanzania’s oil and gas industry for a while now and tracking its development.

 Perhaps, I am qualified to predict what might happen next year.

The prediction aimed you to prepare and help you make better career and business decisions.

1. Energy Intensive Projects 

Tanzania has lacked a completed project for the production of reliable energy supply. 

To enable greater growth of the economy, the region needs to create projects that would significantly increase the production of reliable energy supply. 

This is related to the production of energy from natural gas, solar, and wind.

One of the most pressing problems in East 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 water at your home, or loss of customers for small business owners like barbershops or loss of medical equipment at hospitals.

I strongly believe no one industry can fix our challenge for reliable electricity supply alone. But improving natural gas projects can be only part of the solution that will play its role. But other energy sources like renewable, hydropower, are needed.

The simple truth is that more energy production means prosperity in our country. Because now businesses have access to cheap and reliable electricity to produce more products, make more money and create employment for our growing young population.

More energy projects mean means Tanzanians now have a constant supply of cheap electricity. They can work longer hours, learn and have access to the internet as well as access to clean water. Because now our water purifications plant never stop producing clean water

2.Training shortage, Not Skills Shortage

How do we find qualified welders, pipefitters, welding inspectors, coating inspectors, non-destructive testing inspectors, project managers, project cost controllers to build an East African crude oil pipeline?   

How do we help our petroleum engineers and geophysicists to use sophisticated software to make better interpretations of the geological and seismic data?

Why do companies need months of hunting to fill a mid-level single vacancy? What are the root causes for the skills shortage across the industry?

As I dug to the root of the problem, I heard some people complaining about the lack of academic skills and technical capability among jobs applicants.

Furthermore, the course content doesn’t meet the oil-and-gas industry expectation.

Some complain about lack of work experience. Now permit me to look deep into each of these complaints.

It is totally untrue to claim that the deficiency in academic and technical capability is why good people can’t get a job or is the main cause of skills shortage.

In the oil-and-gas business, you have to know things before you do them. Prospective workers have a college degree or ordinary diploma in an oil-and-gas-related curriculum. 

So, they have basic knowledge and understanding of the industry.

On the other hand, lack of experience isn’t a reason for skills shortage across the industry. Because nobody can get experience in college. That’s where training comes in. And the good news is that most of the oil-and-gas skills are largely learned on the job.

.

In 2021 due to the oil price volatility and covid-19 pandemic many companies have put internal training development into the list of things to downsize. 

Employers want new personnel to start contributing with no further training. But people who can do that are those who have partially done the same job before.

The pressure to gain a competitive edge in today’s business world has led many organizations to demand more from their existing workers and they will do the same from their future employees.

They want workers to start contributing right away without any further training program or ram uptime. So, these days to get jobs you need to be job-ready. This narrows the supply of competent people in the industry.

 

But the skills shortage has a significant negative impact on the oil-and-gas companies’ shareholders. 

Skills shortage increases high employment costs. It also declines productivity because you have to spend months to fill mid-level positions, which in turn lowers productivity, decreases profitability, and finally creates bad stock. And everyone loses.

3.The downstream petroleum sub-sector will be the market for everyone. 

There are increasing residential development influences the volume of traffic in the country, that is, due to increasing population, it indirectly increases the number of vehicles. 

The increase in car ownership has resulted in greater demand for fuel consumption

The downstream segment of the oil and gas industry involves everything from the processing of natural gas and also marketing and distribution of a product that is delivered from crude oil and natural gas such as lubricants, diesel, kerosene, liquefied petroleum gas (cooking gas).

4.Sustainability is a new hot topic in the industry 

Businesses are vulnerable to closure due to competitive market places and regulatory pressures.

Organizations want to know and act on risks and opportunities of environmental issues.

They want to know what does green revolutions means to them? What are the risks and opportunities involved? You can help businesses deal with risks and opportunities.

You can leverage this trend by working as a chief sustainability officer at large companies such as large oil and gas companies who are going green to ensure companies comply with local regulations.

You can also set up your independent consultancy firm helping organizations go green and build value. 

I strongly believe no one industry can fix our challenge for energy shortage alone. So renewable energy can be only part of the solution. That will play its role, but other energy sources like natural gas, petroleum products, and hydropower, are needed.

5.Industry Information overload, minimal real guidance

The oil and gas projects in Tanzania have made big front-page headlines for years and people are still talking about them.

The surprising (or unsurprising) thing about the news and development is that the attention it is garnering now makes all the hullabaloo in previous years a child’s play.

And you know why?

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

Why not? When it made newspaper headlines, we were told that: There are immense supply opportunities in the industry. So there’s no industry information shortage. 

There are constant distractions and industry information overload but minimal real guidance.

 Most entrepreneurs are unsure of where and when their services and products might be needed or even the scale of the services required.

This is creating frustration stress, overwhelm, and paralyzing those wanting to create value and bring results in the industry.

 

I hope this helps.

 

How to select a Petrol Station location that Maximizes Profitability: Site Potentiality Assessment of Petrol Stations

/in /by

Petrol stations are very vulnerable to closure resulting from petrol price competitions, regulatory pressures, and non-strategic locations. Site potentiality is an important factor that influences business success for a petrol station that relies on customer visits.

The right location of petrol station is important for the good performance of a petrol station and its profitability.,

               Identify suitable sites for petrol stations based on traffic counts volume

The location should be considered as a relevant growth determinant. It affects many aspects of petrol station operations and it can affect and can significantly affect the economy of the local community.

You should assess site potentiality before building petrol station. This would help you avoid risks and choose locations that maximize profitability. 

Business profitability of petrol station is influenced by several factors such as property maintenance, size of the site, neighborhood business potential, grade of street and topography, visibility, compatibility of traffic flow, transient business potential, ease of approach, and special features of the location.

Quality of site location is usually associated with the volume and type of traffic flow passing the site, proximity to a major travel route, visibility from the road time taken by drivers to slow down to enter the petrol station, general ability to attract customers, site proximity to the surrounding residential neighborhood, and so forth

These factors in a site location can make a difference between excellence, mediocrity, or failure in use for service station purpose 

Raw traffic counts must be evaluated by experts to determine how much effective demand it will actually produce as well as determine infrastructure requirements.

 

I hope this helps.

A Sample Business Plan for Starting Petroleum Training Center in Tanzania

/in /by

East Petroleum training Center (EPC) will be a newly established training and consultancy institution that offers training programs for oil and gas workers in Mtwara, Tanzania. What differentiates us from our competition is our ability to offer practical training with the latest technology and job placement.

The benefits our services provide to our clients are measurably increased productivity and enhanced business performance.

Our major marketing strategies are to obtain word of mouth referrals via our satisfied clients, obtain recognition in our industry and develop a strategic business alliance.

We are committed to offering our clients superior services by creating a high-quality learning environment where people enjoy themselves and utilize the services of the most outstanding local and international industry experts and instructors to aid in the running of our courses.

Market Need
The discoveries of massive natural gas in Tanzania and East Africa, along with the resulting investments in petroleum infrastructure such as oil and gas pipelines, LNG project projects, natural gas processing plants, and construction of new oil storage tanks 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 the implementation of the projects in the region

Training Courses

  • East Petroleum Center intends to offer the following courses
  • Language Training (English and Chinese)
  • Non-destructive Testing Training
  • Environment and Safety
  • Introduction Petroleum engineering
  • Oil and Gas Upstream and downstream program
  • Drilling courses
  • Management and Planning Courses

Our Mission
The mission of EAST PETROLEUM TRAINING CENTER is to provide training services to new to experienced and newly hired personnel to EPC Contractors, pipeline operators, operators, oil marketing companies, national oil companies, energy regulatory agencies with skills and knowledge required to be competitive and succeed in today’s competitive business world.

Our objective

  • Extend training services to countries in the East Africa region
  • Obtaining Accreditation from international
  • Strategic alliance in place with five companies

Get the Full Version Now

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

Four Ways How to Encourage Investors to Participate in the financing Tanzania Energy Future

/in /by

Today’s investors are cautious. They have made a lot of money and they have lost a lot of money. The pressing problem for many investors is not a lack of investment funds. But lack of confidence in the opportunity being pursued.

Here are four ways to lower investor’s resistance and encourage them to finance your energy project

1.Improve their confidence that they will make good money in your business opportunity.

They need more than new opportunities: They need viable opportunities. To get them to invest their money into your project or business, you need to convince, even prove to them your business idea will provide a solid return on investment

2.Show them how your project idea will make a real impact on people’s lives.

Investors need to participate in something that gives them a solid return and also will make an impact in society. Maybe your project will provide jobs to hundreds of people in Tanzania. Maybe it will provide cheap electricity to Tanzanians

3.Prove that you are result oriented company
Before you seek investors, make sure your company can deliver results. This means you have qualified personnel, and expertise an comprehensive business plan to deliver your energy idea.

4.Investors are driven by the political stability of your hosting country.
Investors who want to put money in a company that operates in a country with a political climate are calm. Not make invertors fear losing their money due to political instability.

I hope this helps.

Four Process of New Business Creation in Tanzania

/in /by

An increasing number of people want to start their own business in Tanzania but lack a map to get there. This post will help you translate your desire to do the right things into business reality

1.Identify Potential business opportunity

The first step in starting a new business in Tanzania is your ability to locate the right business opportunities. The good news is that profitable opportunities are “out there” waiting for entrepreneurs to discover and exploit them. You can generate opportunities in a number of possibilities, from lucrative oil and gas sector through power sector to other mature sectors of the economy like mining industry, health care sector

2.Accumulation of resources

Once you identify promising business opportunities, you need to conduct solid research and due diligence to obtain the critical resources needed to start a new business and build a sustainable business. This entails a steady diet of reading, researching, and networking with an industry expert. You need to mobilize resources to include reliable information, studies, technical knowledge, capital, and other physical resources.

3.Respond to government regulations

Once you have to mobilize 

resources, you have to approach government regulatory authorities in the country to ensure you have all the permits and licenses to ensure your new operation meets all the regulatory requirements,

4.Market Your Products and Services

Client acquisition is king in building a profitable business. If you don’t how you are going to get customers don’t start a business in the country. Because it won’t last. So employ a local team who are great at what they do and are skilled at acquiring and retaining clients. That is the quick way to build a prosperous business in the region.

 

I hope this helps

 

Seven Unique Business Opportunities and Ideas To Make Money and Make Impact in Growing Renewable Energy Sector In Tanzania

/in /by

One of the most pressing problems in East 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 water at your home, or loss of customers for small business owners like barbershops or loss of medical equipment at hospitals.

I strongly believe no one industry can fix our challenge for reliable electricity supply alone. So renewable energy can be only part of the solution. That will play its role, but other energy sources like natural gas, hydropower, are needed.

The simple truth is that more renewable energy means prosperity in our country. Because Tanzanians now have a constant supply of electricity.

They can work longer hours, learn and have access to the internet as well as access to clean water. Because now our water purifications plant never stop producing clean water

Tanzania’s renewable energy sector is crying for new investment. Opportunities in the renewable energy sector in Tanzania are abundant that are awaiting for entrepreneurs to discover and exploit them.

Here are seven opportunities for entrepreneurs who are looking to address pressing problems in the renewable energy sector

1.Provide Training for solar workers
It’s difficult to find qualified people for installing your solar system or panel in Tanzania. The solar industry is growing rapidly, but businesses are struggling to find qualified and trained people with certified training specific to solar panels.

This is huge opportunity for new entrepreneurs who can come in and start training programs for workers and another form of the renewable energy industry. This can help solar workers advance their careers and help the country and move forward in the renewable industry in the country

To make the most of these training programs for renewable energy workers, you need to partner with solar companies to ensure a continued stream of workers.

To attract more students and get attention in the market your training school should emphasize equipping students with the latest industry technology and place them to work at solar companies

2.Provide small wind turbines for customers.
When it comes to renewable energy, wind power is a quick way to provide cheap, clean, and sustainable electricity to Tanzanians.

Opportunities for small wind turbine installers and dealers are abundant.

Variety of opportunities for wind turbine installer including installing small wind tower, designing small wind system and distributing small wind towers

3.Provide affordable and nonpolluting solar Cookers
Food is a human necessity. People cook every day. But the simple truth most Tanzanian prepare food on the stove burning wood, charcoal, and smoke. This leads to further deforestation and great expenses.

And those who cook on LP Gas stoves are finding it expensive to own gas facilities such as gas cylinders and gas cookstoves.

Solar cookers are a cleaner and affordable way to go. By avoiding the use of fuel, new entrepreneurs who offer solar cookstoves can help millions of Tanzanians saves money that can be spent on education and other fundamental.

4.Start Microbe Power business
We don’t have a power shortage in Tanzania. But we do have forms of energy that we are not readily using or don’t utilize properly.

We can convert Microscopic organisms such as bacteria and biomass into electricity and unlock new possibilities in electricity production. We can use microbe to convert them into electricity.

For entrepreneurs who don’t afraid to get their hands dirty. starting and are ready for a new challenge microbe electricity business can be a lucrative venture to pursue.

5.Provide fuel cell for back up electricity, emergency electricity, and mobile power

An unreliable power supply is a major challenge in Tanzania. To stand out, homeowners and businesses install standby diesel generators to ensure they have steady power when the unexpected happens

But the simple truth is that diesel generators are loud, noisy, and polluting and require constant maintenance to ensure are ready to ready to go when power fails. New entrepreneurs can address this need by providing clean backup electricity from a fuel cell.

6.Be chief sustainability officer
Organizations want to know and act on risks and opportunities of environmental issues.

They want to know what does green revolutions means to them? What are the risks and opportunities involved?
You can help businesses deal with risks and opportunities.

You can grab the opportunity by working as a chief sustainability officer at large companies such as large oil and gas companies who are going green to ensure companies comply with local regulations

You can also set up your independent consultancy firm helping organizations go green and build value

7.Start Alternative Fuel Filling Stations
Building alternative fuel stations is a great opportunity to provide cheap affordable and clean fuel for transportations. With the abundant natural gas discovery in the country, setting up compressed natural gas(CNG) fueling stations can be the wise option for entrepreneurs who want to transform our energy use for transportation.

I hope this helps.

Selling to the Tanzanian Oil and Gas Projects Can be Vey Lucrative but it Takes Patience and Time

/in /by

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? Many people come into the oil and gas industry in Tanzania with unrealistic expectations predicated on third-hand knowledge and bad advice.

They fail quickly and blame it on anything but their own ignorance.

Many people come into the oil and gas industry with the expectation to become wealthy by just winning a single contract.

The first is when friends tell them how easy is going to be.

The second is when the industry influencer tells them that he has key contacts inside the industry and can help you enter and be successful in the oil and gas industry in Tanzania.

Then you go into the industry and realize there that buyers in the oil and gas industry in Tanzania has strict procurement roles and procedure.

And if you ignore the ground game –qualifying your products and services, developing a complete proposal that conforms to the rules, and communicating effectively at the technical level. You will certainly go home empty-handed.

I totally agree that the oil and gas industry in Tanzania is creating wealth for its investors. And you can win a contract in less time. Small contracts can happen real fast. But the big juicy contracts that will break your bank accounts often take many months if not years to win

For large contracts, it takes time to positions, build the right relationships of trust, and collect the necessary market intelligence to be competitive
I am known for setting brutally realistic expectations. ‘

An average entrepreneur will win a contract in the oil and gas industry in six to fourteen months.

If you are building a petrol station in Tanzania it will take five to six years from actual start-up through to when the petrol station starts to break even and makes a profit for yourself, your partner, or investors

I am not sharing this to scare you to join the oil and gas industry. I share it to open your eyes to what it’s really going to take to win in this rewarding industry.

See you in the field.

Three Questions On Every Investor’s Mind In East Africa Oil and Gas Industry

/in /by

The biggest challenge in the East African oil and gas industry is getting people/companies willing to invest their money in this industry.

The simple truth is that oil and gas investors are curious by nature. They have made a lot of money and they have and they have lost a lot of money.

For the host countries that means they need to lower investor’s resistance before they can start marketing their blocks and countries

Here are three questions investors ask themselves when considering ventures into emerging oil and gas industries such as East Africa.

1..Am I going to get a high return on investment?

Every investor want to see great return on investment in any country they go into. This is an investor’s main priority. Investors are willing to pay tax to the host country but the discus system should not be marred with corruption that will eat into the profits of the investor

2.Am I likely to find qualified people?

Availability of qualified personnel: Will there be adequate human resources to perform the work in the line of investment. For example, pipeline construction. Is Tanzania in possession of qualified welders, pipefitters, welding inspectors, coating inspectors, non-destructive testing inspectors, project managers, project cost controllers to service such a project?

3.Am I going to lose Money?
The political climate must be calm and not make invertors fear of losing their money due to political instability.

Five Biggest Mistakes Entrepreneurs Make When Starting Petrol Station Business and How to avoid them.

/in /by

The petrol station business has already been proven a success in Tanzania. knowing some pitfalls before you start your own fuel station can help you avoid them. This article is a clear guide to getting started in a fuel station the right way and avoiding expensive mistakes most entrepreneurs make.

Mistake one-Poor selection of location.

People make the biggest mistake: They purchase land and rush into building petrol stations without conducting a feasibility assessment of their sites. 

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 the trading area. 

For your petrol station business to be profitable you need set up in the best location in your target city. 

When you are looking at a potential location for building a fuel station ask yourself this question. Will this location sell? To reduce risks, it is advisable to hire a specialist petroleum industry consultant to conduct a viability assessment of your location and identify cost and infrastructure requirements at your locations as well as identify whether the desired return on investment can be achieved in your proposed petrol station sites. 

The best part is that this viability assessment will help you avoid investing in the wrong places or make decisions that may not help you win the competitive market.

Mistake 2-Insufficient planning and investigation.

 Improper project planning has been found as one of the reasons for the subsequent failure of many petrol station businesses in the country. 

Very often entrepreneurs select to start a fuel station by considering only a few factors influencing the viability of the fuel station business. Many people spend substantial time and resources in project execution while they pay little attention to project planning and project investigation. This leads to making decisions that may not help them win in the competitive industry.

 Proper project planning and investigation can save thousands and truckload of stress and frustration later on. So seek out all materials available, including online resources and as many books and other materials you can lay your hands on.

Seek the opinion of filling stations business owners and consultants about the petrol station business.

Mistake 3- Failure to seek professional advice.

  It’s amazing to see many entrepreneurs jump into the fuel station business without consulting industry experts or other petrol stations business owners.

 How do you know the technical and commercial requirements of the petrol station projects before you consult with experts who have experience in the fuel station industry? Imagine, how you would even make better decisions?

A better consultant makes you more knowledgeable about the project, enabling you to make better decisions and enhance your capabilities. The primary objective of consultants is to help you avoid expensive mistakes and enable you to get better outcomes.

I can’t stress enough the importance of having experts or consultants as part of your team. 

One of the main tenets of having a successful fuel station business is getting good advice. And the first time petrol station business owners should look for all the help you can get.  

When you are hiring an experienced industry consultant you are not just paying him for his opinion and expertise. But also you pay him for experiences and research. 

You will learn in two hours what took him ten years to discover. The right advice will save you big bucks.

Mistake 4-Inadequate Start-Up Capital. 

 The petrol station is capital intensive business. And many petrol station businesses begin without enough money in reserves. Building a modern fuel station and purchasing sufficient fuel to ensure you have enough fuel in sock requires substantial money. 

If you have done your research and have a solid business plan, I promise you the money is out there. Start looking for contacts and potential investors.

Mistake 5-Lack of knowledge about attracting customers

It’s unpleasant to see that many fuel filing stations being set up 

in the country all the time, and far too few of the petrol station business owners who have ever bothered to try to work out what they can offer that their competitors can’t do. 

What you need to do is to identify the competitive advantages of your petrol station business. 

Your competitive advantage refers to those special points that only you can offer and will spur on customers to use your fuel stations and nobody else. 

 You must have a plan to get the customer to use your petrol stations. You can simply sell your fuel and services at a lower price than your competitor and expect to be successful.

By Hussein Boffu

I am a Petroleum industry consultant with a mission to help entrepreneurs know more, help them make better decisions, and enhance their business capabilities. I believe better decisions lead to better outcomes.  Reach out to me via +255(0)655376543 or hussein.boffu@tanzaniapetroleum.com