Rural entrepreneurs get loans to build fuel stations
DAR ES SALAAM: THE government has launched a soft-loan programme to help small entrepreneurs establish mini petrol and diesel filling stations in rural areas, aiming to improve fuel access, lower costs and stimulate local economic growth.
The programme was officially launched in Dar es Salaam through agreements signed between the Rural Energy Agency (REA), Azania Bank and the first eight entrepreneurs selected to benefit from the scheme.
Speaking at the launch, Permanent Secretary for Petroleum and Gas in the Ministry of Energy, Dr James Mataragio, said the programme is a partnership between REA and Azania Bank designed to bring fuel services closer to underserved rural communities.
He explained that residents in rural areas are forced to travel long distances to obtain petroleum products, resulting in higher prices caused by transportation costs and limited access to fuel stations.
“Residents in some areas have been paying more than double the urban price because of transportation costs and limited access to fuel services. This programme will help reduce that disparity,” Dr Mataragio said.
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According to him, establishing formal fuel stations in rural areas would also improve public safety by reducing the use of plastic bottles and other non-standard containers to store and sell fuel, practices that have been linked to fires and other accidents.
REA Director General Eng Hassan Saidy said the programme represents the next phase of the government’s efforts to expand energy access after significant progress in rural electrification.
He mentioned that the initiative focuses on rural areas where petroleum services remain limited and private investors have historically been reluctant to invest because of commercial challenges.
For Eng Saidy, the programme is expected to create jobs, support rural businesses, improve access to fuel and give small entrepreneurs a greater role in expanding Tanzania’s energy sector.
