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How A $150 Million Investment Is Transforming Clean Cooking Access In Tanzania

Invest Tanzania by Invest Tanzania
December 4, 2025
in Energy & Construction, Local Markets, Technology
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Tanzania’

 

DAR ES SALAAM, Tanzania – Tanzania is making transformative strides in its energy sector with the development of major liquefied petroleum gas (LPG) infrastructure in Tanga, positioning the country as an emerging clean energy leader in East Africa while addressing critical public health and environmental challenges.

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The energy transformation gained significant momentum on March 1, 2025, when President Samia Suluhu Hassan officially laid the foundation stone for a $50 million LPG storage facility developed by GBP Tanzania. The project represents a crucial component of Tanzania’s National Clean Cooking Energy Strategy, which aims to increase access to clean and sustainable cooking energy nationwide.

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Addressing a National Health Crisis

The push for clean cooking solutions responds to a severe public health challenge. Currently, only about 7% of Tanzania’s population has access to clean cooking fuels, with the vast majority relying on traditional biomass like firewood and charcoal. This dependence causes significant indoor air pollution, contributing to an estimated 33,000 premature deaths annually according to health authorities.

“Tanzania is open for investment, Tanzania is safe for investment, and Tanzania’s investment policies are friendly and sustainable,” President Hassan declared during the foundation stone ceremony. She emphasized the project’s role in achieving the goals of the National Clean Cooking Energy Strategy, which seeks to improve access to clean energy and reduce environmental degradation caused by traditional cooking fuels.

Strategic Expansion of Energy Infrastructure

The GBP Tanzania facility is just one part of a broader energy infrastructure expansion in the Tanga region. In June 2025, global LPG leader Petredec announced a partnership with local firm ASAS Group to develop a $100 million LPG terminal at the Port of Tanga. This larger facility will feature 40,000 cubic meters of storage capacity in its first phase and include specialized infrastructure capable of handling Very Large Gas Carriers (VLGCs).

The Petredec-ASAS terminal represents one of the largest energy infrastructure investments in Tanzania’s recent history and includes advanced features such as a 2.8-kilometer underwater pipeline and eight truck loading gantries, significantly enhancing Tanzania’s capacity to import and distribute LPG throughout the region.

Tanga’s Strategic Advantage

Tanga’s selection for these major investments leverages the city’s recently upgraded Port of Tanga, which has undergone a TZS 429 billion modernization that increased its cargo-handling capacity from 400,000 to over 1.2 million tonnes annually. This infrastructure improvement, combined with plans to transform the port into a dedicated hub for fertilizers and agricultural products, makes Tanga an ideal location for energy infrastructure development.

Economic and Environmental Benefits

The simultaneous development of these LPG projects creates multiple benefits for Tanzania:

  • Enhanced Energy Security: Reduced dependence on traditional biomass fuels and imported petroleum products
  • Job Creation: Significant employment opportunities in construction, logistics, and energy distribution
  • Environmental Protection: Reduced deforestation, with Tanzania currently losing about 1% of its forests each year due to wood fuel consumption
  • Regional Leadership: Positioning Tanzania as a clean energy hub for East Africa

These developments align with Tanzania’s broader economic goals. The International Monetary Fund’s October 2025 Regional Economic Outlook projects Tanzania’s GDP growth at 6.0% in 2025 and 6.3% in 2026, with inflation remaining moderate at 3.3% and 3.5% respectively.

National Clean Cooking Strategy

The government’s ambitious National Clean Cooking Energy Strategy aims to provide 80% of Tanzania’s population with access to clean cooking solutions by 2034. This goal is particularly important given that Tanzania’s current monthly LPG consumption of approximately 10,000 metric tons represents significant untapped potential in a nation of over 60 million people.

Looking Ahead

As Tanzania continues to implement its development agenda, the successful partnership between public policy and private investment in the energy sector serves as a model for other emerging economies. The combination of strategic vision, investor-friendly policies, and critical infrastructure investments positions Tanzania for sustainable growth while addressing fundamental quality-of-life issues for its citizens.

The country’s progress in clean energy development not only supports domestic needs but also establishes Tanzania as an emerging leader in sustainable energy within East Africa, creating new opportunities for regional trade and cooperation in the years ahead.

It is a paradisematic country, in which roasted parts of sentences fly into your mouth. One morning, when Gregor Samsa woke from troubled dreams, he found himself transformed in his bed into a horrible vermin. He lay on his armour-like back, and if he lifted his head a little he could see his brown belly, slightly domed and divided by arches into stiff sections. The bedding was hardly able to cover it and seemed ready to slide off any moment.

It showed a lady fitted out with a fur hat and fur boa who sat upright, raising a heavy fur muff that covered the whole of her lower arm towards the viewer. Gregor then turned to look out the window at the dull weather. Drops of rain could be heard hitting the pane, which made him feel quite sad.

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