Economy

Sh4.5 billion deal fuels Tanzania’s clean energy transition

This latest plant brings to five the number of large-scale briquette factories operated by STAMICO, with others located in Kisarawe (Coast), Kiwira (Songwe), and in Dodoma and Tabora, where construction is nearing completion

Dar es Salaam. The government, through the Rural Energy Agency (REA) and the State Mining Corporation (STAMICO), has signed a Sh4.5 billion agreement to establish a new alternative energy production plant in Geita Region, marking a major stride in Tanzania’s transition towards clean cooking solutions.

The agreement, signed at REA’s offices in Dar es Salaam, July 22, outlines a joint investment in a factory that will manufacture Rafiki Briquettes, a clean and environmentally friendly alternative to charcoal.

REA will contribute Sh3 billion for the acquisition of production machinery, while STAMICO will provide Sh1.5 billion to cover the cost of land acquisition, construction of the factory building, and installation of equipment.

This latest plant brings to five the number of large-scale briquette factories operated by STAMICO, with others located in Kisarawe (Coast), Kiwira (Songwe), and in Dodoma and Tabora, where construction is nearing completion.

Speaking at the signing ceremony, REA Director General, Hassan Saidy, said the partnership aligns with the national goal of ensuring that 80 percent of Tanzanians have access to clean cooking energy by 2034.

“This agreement is part of the directive from President, Dr Samia Suluhu Hassan, to accelerate production and accessibility of clean energy to rural populations. Increasing the supply of Rafiki Briquettes will help reduce reliance on unsafe and environmentally harmful cooking fuels,” Mr Saidy said.

He underscored the importance of maintaining the new plant to ensure consistent supply and affordability of the briquettes, which are part of the broader National Clean Cooking Energy Strategy.

In addition to supporting briquette production, REA is implementing various initiatives to expand access to clean cooking solutions, including the distribution of improved cookstoves, electric stoves, LPG cylinders (6kg and 15kg), and natural gas infrastructure in Lindi and Coast regions, alongside institutional energy access projects for public facilities.

On his part, STAMICO managing director, Dr Venance Mwasse, commended REA’s support, saying the new investment would help realise the corporation’s ambition to wean the public off unsafe cooking fuels by 2034.

“This clean energy agenda, championed by President Samia is designed to liberate Tanzanian women from the health and environmental burdens of traditional fuels,” he said.

Dr Mwasse noted that Rafiki Briquettes are already in use by all 129 prison facilities across the country, as well as units of the Tanzania People’s Defence Forces (TPDF) and the National Service (JKT).

Other users include schools, training institutions, hotels, restaurants, and local eateries.

He reiterated STAMICO’s commitment to maintaining the plants and ensuring reliable production in support of national clean energy and environmental conservation goals.

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