Taifa Gas, a Tanzanian liquefied petroleum gas (LPG) company, has announced plans to establish a US $100M energy plant in northern Zambia through a joint venture with a local company called Delta Marimba.
The plant will begin production approximately 24 months after obtaining regulatory approvals from Zambian authorities, including the completion of an Environmental Impact Assessment. The primary focus of the energy plant will be the production of LPG, commonly known as cooking gas.
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Motivations for investment
Once operational, it is expected to contribute 100MW of electricity to the Zambian national grid. This addition will help address the country’s current energy demand, which stands slightly above 3,000MW, with an output of 3,100MW.
The decision to invest in Zambia was driven by the favorable investment climate and policies established by Tanzania’s President, Samia Suluhu Hassan, and Zambia’s President, Hakainde Hichilema. Taifa Gas Executive Director, Hamis Ramadhani, highlighted these factors as key motivations for the investment.
Rostam Aziz, the Chairman of Taifa Group, emphasized that the two companies were capitalizing on the present conducive policies, which enable the growth of strong economies. He stated that focusing on the economy would ultimately improve the lives of the people in both countries.
Representatives from Delta Marimba expressed the significance of the partnership, citing historical ties between Tanzania and Zambia. They believe that the collaboration will lead to further developments for both nations.
According to Padmore Muleya, a representative of Delta Marimba, Zambia anticipates increased energy demand from the consumer and mining sectors, following President Hakainde Hichilema’s commitment to raise copper production from 890,000 tonnes per annum to three million tonnes annually. The country’s potential to export power to neighboring countries like the Democratic Republic of Congo (DRC) and Zimbabwe, which also face energy deficits, was also highlighted.
Overall, the joint venture between Taifa Gas and Delta Marimba aims to leverage the favorable investment climate and policies to establish an LPG energy plant in Zambia, contributing to the country’s electricity supply and potential regional energy exports.