Tanzania plans subsidy for CNG vehicles

What you need to know:

  • The government is considering the possibility of introducing a subsidy program to attract more people to convert their cars to CNG

Dar es Salaam. Works and Transport minister, Prof Makame Mbarawa said the government was considering giving subsidies for Compressed Natural Gas (CNG) vehicles to encourage uptake of the alternative to fuel consumption.

“The government is considering the possibility of introducing a subsidy program to attract more people to convert their cars to CNG,” said the minister during an event to celebrate 50 years of Scania operations in Tanzania held in Dar es Salaam.

The automotive company which originates from Sweden, deals in the production of transport vehicles.

Prof Mbarawa said the cooperation between Tanzania and Sweden has enabled innovation and significant development for many years.

“I congratulate Scania for their great work in strengthening the relations between our countries.

“I am particularly impressed by these natural gas-powered vehicles, which will reduce operating costs and air pollution,” he said.

The Swedish Ambassador to Tanzania, Charlotta Ozaki Macias, said it was unique for a company to last for 50 years in the Tanzanian market.

“I believe that Scania has an important role to play in ensuring that Tanzania moves towards a green economy,” she said.

Managing Director of Scania Tanzania, Lars Eklund, stressed that they continue to look for investment opportunities in the country to promote Tanzania’s development.