Tanzania funds rural fuel stations to improve access
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Eight entrepreneurs in Tanzania received 1.2 billion Tanzanian shillings in loans to construct fuel stations in rural areas, through a program run by the Rural Energy Agency (REA).
REA partnered with Azania Bank to provide loans between 75 million and 133 million shillings to individuals and groups. The program began in July 2026 with these initial recipients. The loans offer a five percent annual interest rate, a six-month grace period, and repayment terms extending to seven years.
REA designed the program to serve communities where residents must travel long distances for fuel, and where unsafe, informal fuel storage is common. Before receiving funds, applicants undergo both technical and financial evaluations by REA and participating banks. Borrowers must offer collateral worth at least 1.25 times the loan amount, though the financed facility itself can serve as collateral if other assets are unavailable.
REA also requires proposed station locations to be at least 10 kilometers from existing stations and a safe distance from public facilities. REA plans to expand the program in phases, learning from the initial rollout. The 1.2 billion shillings represents the value of contracts signed in the first phase, and is not a fixed limit for the entire initiative. Borrowers are responsible for funding their initial fuel stocks.
