Stakeholders Discuss Business and Investment Opportunites in LPG in Tanzania

Dar es Salaam saw the opening of the East Africa – Tanzania LPG Expo 2023 on the 15th of March where regional and international stakeholders of the LPG industry met to deliberate their views and share the latest updates on the LPG business trends in the country and worldwide.

The event is particularly relevant for Tanzania as the country pursues its transition to clean cooking recently set by President Samia Suluhu Hassan.

In his welcoming remarks, Eng. Felchesmi Mramba Permanent Secretary of the Ministry of Energy of Tanzania noted that “President Samia Suluhu Hassan declared the formulation of National Clean Cooking Strategy 2033 that will realize 80% use of clean cooking fuels to the Tanzanian households by 2033. In order for this strategy to be a reality we need to focus on increasing investment in clean cooking fuels such as LPG, natural gas (city gas) and e-cooking.”

Eng. Mramba also explained that the Ministry of Energy is leading the preparations for the structuring of the Tanzania Clean Cooking Fund and the drafting of a 10-year national vision and implementation strategy for the transition to clean cooking.

Within this framework, Tanzania’s LPG market is expected to bring new investments in the oil and gas sector, and government officials and experts from the industry are sharing at Tanzania LPG Expo 2023, their perspectives on the long-term growth potential for LPG in Tanzania, and on how they intend to harness these opportunities.

Tanzania’s Clean Cooking Ambitions

Charcoal is the main source of fuel for cooking in Tanzania. In addition to its environmental impact, its use is harmful to human health as it leads to acute respiratory diseases and premature deaths.

Nearly 33,024 people die prematurely annually in Tanzania from illnesses that are attributable to indoor air pollution. Women and children are the most affected groups as they spend many hours a day in the kitchen exposed to high levels of air pollutants. 

To tackle this situation, the government of Tanzania is set to establish a Clean Cooking Energy Fund during the 2023/24 fiscal year, to promote and replace dirty cooking solutions and widen the access and use of clean energy.

The AECF (Africa Enterprise Challenge Fund) is currently implementing a project funded by the Government of Sweden, to support market-based approaches for clean cooking in Tanzania.

Dubbed the Tanzania Clean Cooking Project (TCCP), it is a USD 3.75 million three-year project that aims to catalyze the clean cooking sector through enhanced private sector participation.

The project provides matching grant financing and technical assistance to small and growing businesses working in clean cooking.