Oil & Gas

Tanzania requires more than $1 billion in investment over the next decade to unlock its full Liquefied Petroleum Gas (LPG) potential and accelerate the country’s clean energy transition, according to key players in the business and finance sectors. This was emphasized during the launch of the Rapid Payment Application (Ripa), a digital platform aimed at transforming how LPG distributors access finance and operate in the market.

Speaking at the event, Oryx Energies Tanzania’s Managing Director, Mr. Kalpesh Mehta, said Tanzania's LPG sector remains significantly underdeveloped despite its vast potential. “There is a huge opportunity for private sector involvement, but real progress requires large-scale investment and innovation,” he stated. Citing Indonesia as an example, he noted that while the Southeast Asian nation has a population of 218 million, Tanzania’s over 60 million people continue to face LPG supply and infrastructure challenges. “We currently have just two LPG import terminals—Dar es Salaam and Tanga—handling only 16,000 metric tonnes,” he added, calling for urgent infrastructure expansion.

Mr. Mehta projected that Tanzania would need over $1 billion in investments to match Indonesia’s LPG usage levels. “Such investment would deliver substantial economic, environmental, and social benefits for the country,” he noted. His sentiments were echoed by Mr. Joel Usiri, COO of Ramani Company Limited, who introduced the Ripa platform as a tool to support LPG distributors by improving access to capital and digital financial services. “Since launching operations, we’ve disbursed Sh700 billion across sectors such as gas, agriculture, and manufacturing,” Mr. Usiri revealed.

He further explained that many LPG traders struggle to grow due to lack of capital and technology. “Access to capital remains a key challenge for many entrepreneurs,” he said. Ramani client, Ms. Ummy Asharf, shared how the company’s credit support enabled her business to scale. “They gave us the products on credit, and we pay back in small instalments,” she explained. With the help of the Ripa app, users can track deliveries in real time, making operations more efficient and transparent for both suppliers and distributors.