Gas cylinder plant to open October

17Aug 2019
James Kandoya
Dar es Salaam
The Guardian
Gas cylinder plant to open October

TANZANIA’s first gas cylinder manufacturing plant is scheduled to start operations in October and reduce reliance on importation and related costs.

Ally Awadhi, the founder of energy trading and transportation conglomerate Lake Group said this during the laying of the foundation stone for its construction that all equipment for building the plant had already been purchased.

He told the guest of honour, Coast Regional Commissioner Evarist Ndikilo that locally-manufactured cylinders will increase the use of gas since the containers will be available at cheaper prices.

  “All the machines are at the port of Dar es Salaam awaiting some clearing processes,” he said.

Last month, the government appealed to investors in the oil and gas sector to put up gas cylinder manufacturing plants to reduce the cost of importation which hinders the majority of Tanzanians from shifting to the clean energy.

Speaking at the official opening of the sixth LPG summit in Dar es Salaam, Minister for Energy Dr Medard Kalemani said the price of LPG for domestic use is too high for low-income earners and the culprit is the cost of imported cylinders.

A survey conducted by The Guardian showed that a 15kg of LPG (gas and cylinder) retails at 100,000/- to 120,000/- while the 6kg goes for 55,000/- to 60,000/-. But for the refill—gas only—the cost c0mes to 50,000/- and 20,000/- respectively, implying that the cylinder alone gobbles up half the cost for the first gas purchase.

Awadhi said the new manufacturing plant will create new job opportunities and other forms of commerce to the community around its premises and the region as a whole.

“Our programme to establish new plants resonates with the fifth phase government of becoming an industrialized country, also coping with this year’s theme of the Southern Africa Development Cooperation (SADC) summit events,” he specified.

The CEO noted that apart Lake Steel industry slated for the same venue will also help to bolster the country’s economy.

In another development, Awadhi said that Lake Group was in the final stages of establishing a new water pipe plant that will be the first in East and Central Africa.

RC Ndikilo reaffirmed that the government was committed to ensuring a conducive environment for investors.

He said at least 50,000 people have benefitted from job openings in the past three years since the government drive for industries was launched in the region.

Out of these, 20,000 opportunities are direct jobs while 30,000 are indirect, whereas once Lake Group open its two plants, the numbers will sharply increase, he stated.

There are 1192 industrial units and establishments in Coast Region, with 56 being larger industries, 85 being medium and 350 being small industries, while 701 are micro units or home based industries, he elaborated.

RC hinted that the two manufacturing plants will be launched by the President anytime later this year when its installation was over.

Kibaha District Commissioner Assumpta Mshama said there was still plenty of land in the district set aside for investors who wish to establish factories.

“We have set a conducive environment for those wishing to invest in our district. My office in collaboration with RC’s office has set a helpful networking system to eliminate cumbersome processes for investors, ”she added.