DAR ES SALAAM: The government of Tanzania has announced an expansion of its strategic fuel reserves and accelerated construction of a major storage terminal at the country’s principal port, citing rising global energy volatility and geopolitical instability.
President Samia Suluhu Hassan issued four directives during a ceremony laying the foundation stone for the tank farm project at Dar es Salaam Port in Kigamboni.
The facility will be the first state-owned strategic fuel storage site, enabling authorities to buffer domestic supplies against international disruptions.
Global fuel prices have risen by roughly 13% this week, driven by geopolitical tensions and shifting energy markets.
The government argued that greater domestic storage capacity will help shield the economy from external shocks.
“Given shifting global politics, it is wise to have a project like this to ensure our fuel security,” the president said, noting that Tanzania must prepare for prolonged market volatility.
The storage terminal will hold 378,000 cubic metres of fuel, including diesel, petrol and aviation kerosene.
Authorities say the investment will reduce reliance on external logistics and improve supply chain resilience at Dar es Salaam Port, a critical gateway for East African trade and regional commerce.
Samia instructed the energy ministry and port authorities to complete the project to international engineering standards and environmental safeguards.
She emphasised that the facility must operate sustainably and meet global benchmarks for safety and environmental protection.
The project will allow the government to own and manage strategic fuel infrastructure for the first time, strengthening national control over petroleum handling operations.
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Officials say this will improve transparency and efficiency in distribution while reducing bottlenecks that have previously delayed imports.
The president also ordered enhanced monitoring of fuel consignments in cooperation with the Tanzania Revenue Authority and other agencies. Tracking systems will follow shipments from port discharge through distribution to improve accountability and protect public revenue.
“Proper verification is essential to ensure all imported fuel is accurately recorded,” she said.
Project contractors were directed to deliver the facility within agreed timelines and engineering standards, allowing operations to begin without delay.
The investment forms part of wider economic reforms aimed at strengthening Tanzania’s logistics infrastructure and trade competitiveness. Authorities say efficiency gains at Dar es Salaam Port have helped increase customs revenue from 7.3tn shillings in 2020/21 to 12.31tn in 2024/25.
Officials estimate that the tank farm will reduce vessel turnaround times and demurrage costs, improving port performance as global supply chains remain fragile. The project is also expected to expand fuel storage capacity and enhance domestic price stability.
Energy analysts note that many developing economies are pursuing similar strategies as geopolitical tensions and climate-related disruptions reshape global markets. Countries dependent on imported hydrocarbons face growing pressure to strengthen strategic reserves and diversify energy sources.
Tanzania’s initiative reflects broader regional efforts to modernise infrastructure and improve economic resilience. The country aims to position itself as a logistics hub for East Africa, linking landlocked neighbours to international trade routes while increasing investment in energy and transport networks.
