Heavy Oil Refinery Launched in Tanzania

Industrial group Kamal of Tanzania recently launched its TZS10b heavy oil refinery in Tanzania.

The factory is placed in Kamala’s industrial park in Bagamoyo, established under the Special Economic Zones (SEZ) program.

The TZS10b factory will allow Tanzania’s industries to produce heavy oil locally instead of importing it.

Additionally, the factory will produce automotive lubricants, which Tanzania currently imports from the United Arab Emirates (UAE) and other countries, according to Kamal Group’s Chairman, Gagan Gupta.

The refinery will have the capacity to produce approximately 27,000t of oil per year and about 10,000t of lubricant annually.

This will save Tanzania USD15m of its foreign exchange reserves and at least 200 Tanzanians will be directly and indirectly employed in the refinery, Gupta explained.

Heavy oil demand is not limited to Tanzania, for which the company will export its products to other neighboring countries, such as Kenya, DRC, Uganda, and Zambia.

Tanzania’s Permanent Secretary in the Ministry of Industry, Trade and Investment, Dr Adelhelm Meru, said that the establishment of the refinery is another step toward the country’s industrialization.

He added that the new factory proves the effectiveness of the combined efforts of the Government and the private sector in achieving Tanzania’s 2025 vision.

Tanzania aims to become a semi-industrialized nation by 2025. For this, the contribution of manufacturing to the national economy must reach a minimum of 40% of the GDP, Tanzania’s 2025 vision indicates.

To achieve this, Tanzania aims to develop a broad and diverse base of manufacturing, processing and packaging industries that will lead both the productive as well as the export trade sector.

Foreign Direct Investments (FDIs) are expected to provide the capital for the desired industrial development.

For this, Tanzania launched its Export Processing Zone Program in 2008. Tanzania’s Export Processing Zones Authority (EPZA) promotes investments in Tanzania’s Special Economic Zones (SEZs) and Export Processing Zones (EPZs) by granting investors fiscal and non-fiscal incentives.

Kamal Group originated in India and expanded in Tanzania and Dubai. The group is involved in Steel, Medical Gases, Agriculture, Mining and Township Development.