Oryx Gas Tanzania Ltd: Growing Tanzanian LPG Market
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Oryx Gas Tanzania Ltd: Growing Tanzanian LPG Market ARDA: April 27th 2021
Tanzania Macroeconomic Overview
Economic Forecast Political Environment
● Unitary dominant party presidential constitutional republic
units 2018 2019 2020 2021 2022
● CCM (Chama Cha Mapinduzi). Major opposition parties are Chadema,
GDP CUF, ACT.
(%) 6.7 6.6 2.5 4,5 6.5
growth rate ● Executive power lies with Government. Legislative power is exercised
by Parliament and the Judiciary which is under the Chief Justice
Population mn. 57’310 59’091 60’922 62’811 64’758
completes the three pillars of governance in the country.
Inflation
(%) 3.51 3.47 3.6 3,3 3,2 ● Central Bank very stable. Financial institutions are tightly controlled
rate specifically wrt publishing of statistics and key economic indicators.
Interest ● Corruption level: Ranking 99 out of 175 ref to TCI.
(%) 7 7 7 5 n.a.
rate
LC per
FX rate 2’280 2’311 2’314 2’315 n.a.
1 USD
Energy Outlook Social and Economic Environment
● Gas market growing at strong pace: > 10% pa ● Tanzania economy focuses on infrastructure projects, energy
● Country gaseification as energy priority development, mining, agriculture, transport and logistics, tourism
● Development of both NG and LPG distribution ● Covid crisis had an adverse impact for a limited period of time as the
● Electricity supply: 1.5 K MW to which will be added 2.1 MW hydro with Government has chosen to favor economy vs. sanitary
Rufiji Dam in 2022 ● Public debt as % of GDP: 37%
● Foreign currency reserves = 5 months of imports
● Regulatory environment: Currently unpredictable but more stability
expected to come soon
● Social environment qualifies as good, since the economy has been
protected from too much of adversity due to the Covid-19 pandemic.
Private and Confidential 2
Oryx Gas Tanzania Ltd: Profile
● Vision
“Oryx Gas Tanzania Ltd “OGTL” is passionately committed to widely supplying LPG to households and businesses
of Tanzania. As such, OGTL is aiming to contribute to the supply of at least one gas cylinder per Tanzanian dwellings
over 10 years”
● Mission
“OGTL is offering LPG which is available, sustainable, affordable, portable and environmental friendly.
OGTL makes sure that LPG is delivered daily to its customers for a safe use.
As such, OGTL makes possible to a vast part of the Tanzanian population to access an affordable energy which meets
their needs.”
● Strategy
“ Growth capture”
● Summary
– Incorporated in 2006..
– 2015 a game changer year with > 70 M USD investment from then in Receiving Terminal, Depots, Filling Plants and
Cylinders.
– Tanzania LPG market Attractiveness: Regulation is currently conducive for investment, “Velvet regulation” for now waiting
for likely formal price regulation and Bulk Procurement System (BPS) to come within 3 years horizon.
– Market Size of 190KT in 2020;
• Local Sales = 110KT
• Exports = 80KT.
– Current consumption of 1.8 Kg /y/cap. Potential of 7 Kg/y/cap over 10 years
Private and Confidential 3
Oryx Gas Tanzania Ltd: Supply Chain
Private and Confidential 4
Oryx Gas Tanzania Ltd: Country Coverage
Strong Market leader
Private and Confidential 5
Oryx Gas Tanzania Ltd: The Success Story
– Material Investment in Infrastructure.
– Continuous Investment in Cylinders.
– Sustainable Supply with reliable supply chain.
– Permanent customers’ education
Challenges:
– Illegal Decanting and Refilling.
– -Limited port infrastructure
– Cross-filling.
Way Forward:
– Continuous Investment in Infrastructure.
– Drive continuous engagement between the Private and Public sectors to improve level playing field.
– Consolidating leading position within a growing market
Private and Confidential 6Thank you
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