Kamal Group said during the weekend that its newly-launched heavy oil refinery in Zinga (Kerege) will help Tanzania to save $15 million in its foreign currency reserve which is currently spent on importing the product.

 

The oil is one of the cheap fuels available for industrial use.

 

The Dar es Salaam-based company has an industrial park in Bagamoyo established under the Special Economic Zones (SEZ). The refinery which will also produce lubricants is built in the zone.

 

The firm has also invested in the production of steel, industrial and medical gases and power generation.

 

"Going by the research that we have conducted, there is no any factory in Tanzania that is currently producing good-quality of furnace oil with proper technology. This means that Tanzania will be saving about $15 million of its forex reserves which is currently spent on importing the products per annum," said the Kamal Group chairman Mr Gagan Gupta.

 

Permanent secretary in the Ministry of Industry, Trade and Investment Dr Adelhem Meru and the Indian High Commissioner to Tanzania Mr Sandeep Arya presided at the event that was also attended by various members of the business community.

 

Speaking at the event Dr Adelhem Meru thanked the company for being one of the six companies that have set up private Special Processing Zones in the country.

 

"The government will continue working with you to make sure that your investment dreams especially in these zones are achieved," he said.

 

According to Mr Gupta, Furnace oil demand is not limited to Tanzania. That means the company will be exporting its products to other neighbouring countries like Kenya, DR Congo, Uganda and Zambia among others.

 

Apart from transferring the technology to Tanzanians, the country will also benefit through creation of at least 200 direct and indirect jobs in the refinery.

Source : allafrica.com