Rural communities could soon have better access to regulated fuel supplies after the Rural Energy Agency (REA) opened an affordable financing window for cooperatives to establish and operate small petrol and diesel stations.
The initiative, being implemented in partnership with Azania Bank, is targeting cooperatives and small entrepreneurs in rural areas, where limited access to formal fuel outlets has often forced residents to rely on informal suppliers.
The opportunity was presented to about 300 leaders of Agricultural Marketing Cooperative Societies (AMCOS) and other cooperative unions during a training session organised by REA and the Tanzania Federation of Cooperatives (TFC) at the John Malecela Nane Nane exhibition grounds in Nzuguni, Dodoma.
Speaking during the training, REA engineer Deusdedit Malulu said the agency had started providing affordable loans to support the construction and operation of small fuel stations in rural areas.
The financing programme, officially launched by the Government through REA and Azania Bank on July 23, 2026, is intended to make it easier for small entrepreneurs and cooperatives to invest in fuel distribution infrastructure.
Mr Malulu said the programme was also designed to address safety concerns arising from the informal storage and sale of petroleum products in plastic bottles, jerry cans and other containers that do not meet safety requirements.
“Many rural residents have been buying fuel at high prices and, in some cases, from informal sellers, increasing safety risks, compromising fuel quality and raising production and transportation costs,” he said.
The availability of formal fuel outlets in rural areas could help reduce some of these challenges by bringing petroleum products closer to consumers while improving compliance with safety and quality standards.
For farmers and rural businesses, improved fuel availability is particularly important because petrol and diesel remain essential for agricultural machinery, transportation, irrigation equipment, generators and other productive activities.
The initiative also places cooperatives at the centre of efforts to expand rural energy infrastructure, potentially giving them an additional investment opportunity beyond their traditional agricultural and marketing activities.
Mr Malulu said REA’s support for rural energy development extends beyond petroleum products, noting that the agency was also promoting clean cooking and renewable energy projects.
These include grants and affordable financing for electricity-generation projects using water, wind and solar resources, he said.
The expansion of such financing opportunities comes as the Government seeks to increase access to modern energy while creating opportunities for rural communities to participate directly in energy-related businesses.
For cooperatives, the challenge will now be to assess the commercial viability of proposed fuel stations, comply with safety and regulatory requirements and ensure that the investments deliver affordable and reliable services to the communities they are intended to serve.