The Tanzania fuel market is changing — get the insights

In recent years, fuel retail in Tanzania has been dominated by the three major brands, but Kalibrate’s latest market study has shown that the landscape is starting to shift. A number of strong, smaller players have plans for aggressive investment and rapid expansion across the country in the coming years. The new Kalibrate market study has revealed that Tanzania is the land of opportunity for fuel retail.

Kalibrate’s insights will benefit anyone with an interest in building or buying sites in Tanzania.

“Tanzania is a growing market with plenty of opportunities for savvy retailers to develop their networks both through new build locations and through acquisition.  Our survey identified a high number of under construction sites showing the dynamic nature of the market, including outside the traditional Dar-es-Salaam area.  With a high number of operators present in the country, there is plenty of scope for consolidation and our study has identified a number of high potential targets for acquisition which would add high quality real estate to any acquiring network.”

— Elizabeth Kershaw, Client Services Consultant at Kalibrate

It’s unsurprising that Tanzania’s Eastern Region, and economic hub of Dar Es Salaam, accounts for a huge proportion of fuel sales: with 37% of all petrol sales, 33% of all diesel sales, and 40% of all c-store sales in Tanzania being generated in the area. But what might surprise you is that the country’s Southern Region has more “under construction” fuel stations than any other region — suggesting that market growth isn’t exclusive to the East.

44% of the Tanzanian fuel retail market is made of unbranded fuel sites, and using Kalibrate’s unrivalled we’re able to identify which of these sites have untapped potential. Kalibrate has identified four networks that have strong locations but are operating under their potential — making them prime candidates for acquisition.

The opportunity for fuel retail in Tanzania is clear, but choosing where to build, or which networks to acquire isn’t always so obvious. The location of your fuel station defines it’s potential and some locations far outshine others. Using scientific data modeling you can successfully assess the suitability of any potential location to ensure you are making the very best choices for your business.

The market study shows that 100 fuel stations in Tanzania have closed, but over 150 are under construction. This proves that fuel retailers in the country are optimizing their networks. Understanding the potential of existing sites will help you to concentrate investment in the right places to bring you the biggest gains.

Whether you’re investing, buying, or acquiring fuel retail sites in Tanzania, Kalibrate has the data, knowledge, and insight to help you maximize the performance of your network. Let data science validate your strategic decision making to ensure you get the best results.

Your competition are optimizing their networks — don’t fall behind.

Speak to Kalibrate today.

Tanzania fuel retail market insights


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