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Tanzania Accelerates Construction Of Fuel Storage Facility to Boost Energy Security

Invest Tanzania by Invest Tanzania
December 4, 2025
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DAR ES SALAAM,  – The Minister for Transport, Professor Makame Mbarawa, has directed the Tanzania Ports Authority (TPA) to intensify technical supervision on the construction of a 703bn/- strategic fuel storage project in Kigamboni, Dar es Salaam, aiming to bolster the nation’s fuel reserves and cut operational costs.

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During an inspection tour of the facility, which has reached 33.5 percent completion, Prof Mbarawa emphasized that the government-funded project will provide 380,000 cubic metres of storage capacity, enabling Tanzania to maintain adequate fuel reserves within its borders and ensure a stable supply.

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“This project, once completed, will ease the cost of living and reduce fuel-related expenses,” the Minister stated. “It will also improve port efficiency by cutting the time needed to offload fuel from seven days to fewer than four.”

The facility will consist of 15 large-capacity tanks, with six designated for diesel storage, five for petrol, three for jet fuel, and one serving as a transfer line connecting different storage points. The project, which began in August last year, is expected to be completed in August next year.

Prof Mbarawa highlighted the significant financial losses incurred due to current port inefficiencies, noting that fuel suppliers pay 57m/- per day when vessels are forced to wait offshore. “If a vessel waits for 20 days, that amounts to nearly 500m/-. These losses do not only affect the supplier, they ultimately impact consumers,” he explained.

The Minister commended President Samia Suluhu Hassan for prioritizing major development projects aimed at stimulating economic growth and lowering the cost of living for Tanzanians.

TPA Deputy Director-General, Dr. Baraka Mdima, assured the minister that preliminary works have been completed and construction is progressing according to schedule, with teams working to ensure the project is finalized within the contractual timeline.

The enhanced storage capacity is expected to significantly strengthen Tanzania’s fuel security while reducing costs associated with fuel importation and distribution.

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