Dar es Salaam. Tanzania requires $13 billion to enhance energy production and distribution through its National Energy Compact Plan, launched at the Mission 300 African Energy Summit on Tuesday, January 28, 2025.
This comprehensive initiative aims to accelerate electricity connectivity to 75 percent of the nation’s population by 2030, connecting 8.3 million households in the process.
President Dr Samia Suluhu Hassan of Tanzania explained that Tanzania is one of 12 countries launching a National Energy Compact.
“To realize this ambitious target, we will need an investment of $13 billion over the next five years, with $5 billion expected to come from the private sector,” asserted the Head of State.
The just launched Compact focuses on several strategic areas, including expanding electricity generation, fostering regional energy trade, accelerating rural electrification, and promoting clean cooking solutions to reduce reliance on charcoal and firewood.
Currently, Tanzania has a power generation capacity of 3,431.20 MW, with 58 percent sourced from hydropower and 35 percent from natural gas.
The government plans to increase this capacity by 2,463 MW by 2030 through renewable sources like solar, wind, and geothermal.
In terms of regional energy trade, Tanzania is poised to play a central role.
“Geographically, Tanzania is a crucial link between the Eastern Africa Power Pool and the Southern Africa Power Pool,” President Samia noted, highlighting the potential for electricity trade extending from Southern Africa to Egypt.
The country has already interconnected its power infrastructure with Burundi, Kenya, and Rwanda and is working on further connections with Zambia and Uganda.
With an electricity demand of 1,888.72 MW in November 2024, Tanzania has the capacity to export surplus electricity.
Another critical component of the Compact is expanding electricity access to rural areas.
While all 12,318 villages in Tanzania have been connected to the national grid, the government is now focusing on reaching all 64,359 sub-villages.
“So far, 32,827 sub-villages have been connected, and work continues on the remaining 31,532. This effort will transform rural lives and accelerate economic growth,” President Samia stated.
The plan will also raise the electricity connection rate from 46 percent to 75 percent by 2030.
The plan also addresses the reliance on firewood and charcoal for cooking, which accounts for over 90 percent of household energy use.
Recognizing the significant health and environmental impacts of this dependency, especially on women and girls, President Samia introduced the National Clean Cooking Energy Strategy.
The goal is to increase the adoption of clean cooking energy from less than 10 percent to 80 percent by 2034.
The two-day summit, whose climax was on Tuesday, gathered leaders from various African nations, including Burundi, Botswana, Zambia, Congo, Comoros, Djibouti, Ethiopia, Gabon, Ghana, Guinea Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mauritania, Nigeria, Sierra Leone, and Somalia, along with representatives from international financial institutions and the private sector.
With commitments of $40 billion in funding secured from the World Bank and the African Development Bank, the summit aimed to accelerate electricity distribution across Africa, ultimately connecting 300 million people within five years.
Through the National Energy Compact Plan, Tanzania seeks to attract further investment to boost electricity production and complete the integration of its power grid with neighboring countries.
By enhancing energy access and promoting sustainable practices, Tanzania is poised to transform its energy landscape and significantly improve the quality of life for millions of its citizens.
Speaking during the official opening of the Summit on Monday, the Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, lauded the summit as a critical platform for accelerating sustainable development across the continent.
He noted that the summit aligns with Tanzania’s National Energy Policy, which champions the expansion of energy access, efficiency, and conservation to support economic growth.
“While Tanzania has made great strides in energy infrastructure and regional connectivity, further strategic investments in renewable energy are vital to support industrial and mining sectors, which are key to our economic ambitions,” Dr Biteko said.
