Contrary to recent speculations, Total have no plans of leaving Tanzania, as the advertisement for the sale of some of its asset was a normal asset management program.
According to Marsha Msuya-Kilewo, the corporate affairs director of Total Tanzania, the company is opening new retail outlets in line with its operational strategy. The announced sale is directly linked to Total’s acquisition of Gulf Africa Petroleum Corp (Gapco) from Indian Reliance Industries in 2017.
Total acquired all the assets of Gapco in Tanzania, Kenya and Uganda. After the acquisition, the sales became necessary so as to avoid competition in the same locations.
She said, “We reached a point whereby in some locations, our service stations were competing with each other. The best business decision to make at that point was to sell some of the property but in short, Total is here in Tanzania to stay.”
“So this is not the first time that we are selling some of our property. Some months back, we sold some depots that used to belong to Gapco in Dar es Salaam.”
Having been in the country since 1969, Total is a leading partner in the 1,445 kilometres export pipeline project, the East Africa Crude Oil Pipeline project (EACOP). The pipeline will transport crude from Kabaale in western Uganda to the Chongoleani peninsula near the Tanga Port in Tanzania.
She said the company has no intentions of leaving anytime soon after investing such a huge amount in the past three years. She said, “All our eyes and energies are now focused on the crude oil pipeline and that is all I know.”
On the day the asset sale notification was made, Total also launched a new station at Goba, Ubongo District of Dar es Salaam; Total Mchigani.
Speaking at the launch, the Managing Director of Total Tanzania, Jean Franchois Schoepp said, “Today, we are very happy to be in Partnership with Mr Frank Malle; owner of F.S Mshuwa Co and now a owner of Total Mchigani station. I would also like to take this opportunity to invite business partners who wish to expand their businesses to franchise with Total brand through our Dodo programme and have a chance to own service station and work hand in hand with Total Tanzania to broaden and strengthen your business.”
Alongside the assets acquired from Gapco, Total has about 100 stations across the country. According to him, the French Group has invested about $200 million in Tanzania over the past three years. Last year, the company commissioned a $20 million lubricant factory in Dar es Salaam.