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TOL Gases, Unitaid and partners ushers in Africa’s first regional oxygen production network into Tanzania

by Editor
25/04/2025
in Investment, Manufacturing, Oil and Gas
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Unitaid’s East African Program of Oxygen Access (EAPOA) is now expanding into Tanzania, as part of a US$22 million investment that seeks to build sustainable supplies of medical oxygen across sub-Saharan Africa. The initiative, which launched in Kenya in October 2024, is now entering the second phase in Tanzania. Prime Minister Kassim Majaliwa led the official groundbreaking ceremony held in Dar es Salaam at the TOL Gases Headquarters on 20th March 2025.

Medical oxygen is a lifesaving, essential medicine, yet it remains scarce in many parts of sub-Saharan Africa. Some countries have access to less than 10% of what they need, putting patients at risk. Oxygen is critical for treating pneumonia, COVID-19, advanced HIV, severe tuberculosis and malaria, as well as supporting maternal care, surgery, and emergency treatment. Closing this gap requires both immediate action and long-term, sustainable solutions to meet growing demand.

The EAPOA is constructing new oxygen production facilities across the region and establishes supply lines using a hub-and-spoke model. Central production sites (hubs) distribute oxygen to smaller facilities and remote locations (spokes), ensuring wider access. The first phase began with the construction of oxygen production facilities in Mombasa and Nairobi, Kenya, creating key hubs for the production and distribution of liquid medical oxygen.

Prime Minister Kassim Majaliwa and TOL Gases PLC Chairman CPA Leonard Chacha Kitoka after laying the foundation stone for a new oxygen production plant in Dar es Salaam, March 20, 2025.

As part of this next phase, TOL Gases Plc, a mid-size Tanzanian oxygen supplier, in collaboration with Tanzania’s Ministry of Health and regional partners, is expanding production capacity within a growing network of liquid oxygen plants – known as air separation units – strategically positioned to reach underserved communities. This partnership ensures that facilities will not only supply Tanzania but also support neighboring countries, including Malawi, Mozambique, Uganda and Zambia, strengthening access to lifesaving oxygen across the region.

“At TOL Gases, we believe that access to medical oxygen is not a privilege – it is a fundamental right to an essential medicine,” said TOL Gases Limited Managing Director Daniel Warungu. “We are proud to stand at the forefront of this transformative partnership to expand oxygen production and reach across Tanzania and neighboring countries.”

Prime Minister Kassim Majaliwa speaking during the launch of a new oxygen production plant in Dar es Salaam, March 20, 2025.

Together, the manufacturers across Kenya and Tanzania will triple regional production capacity, adding over 60 tons of oxygen per day. This expansion will enable thousands more patients to receive lifesaving treatment each month reduce oxygen prices by up to 27%, ensuring long-term sustainability and a stronger regional oxygen market.

In Kenya and Tanzania alone, an estimated 990,000 children suffer from acute illnesses every year that require medical oxygen. By increasing production and improving affordability, the EAPOA will significantly expand access to oxygen, helping to save lives and strengthen healthcare systems across the region.

“Unitaid is committed to supporting initiatives that drive long-term impact,” said Dr. Philippe Duneton, Executive Director of Unitaid. “By focusing on sustainability, market competition and affordability, we are ensuring that medical oxygen becomes an integrated, self-sustaining part of the healthcare system in East and Southern Africa.”

The EAPOA uses a blended financing model, combining grant funding from Canada and Japan with potential support from MedAccess through volume guarantees where appropriate. The Clinton Health Access Initiative (CHAI) will lead implementation in collaboration with the Government of Tanzania, PATH, and other development partners.“Expanding regional oxygen production is a vital step toward stronger, more resilient health systems,” said Esther Mtumbuka, CHAI Tanzania Country Director. “By working with the Tanzanian Ministry of Health and Unitaid, and leveraging innovative financing, we are building a sustainable, locally driven oxygen supply – one that ensures facilities have reliable, affordable access now and in the future.”

The COVID-19 pandemic underscored a critical lesson: oxygen must be a permanent part of healthcare infrastructure, not just an emergency intervention. Ensuring sustainable access requires a stronger focus on regional manufacturing and locally driven solutions that can meet long-term needs.

Editor

Editor

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