Dar es Salaam/London. Tanzania is seeking to attract more than $4 billion in private investment by 2030 to support the expansion of its energy sector and meet the country’s growing electricity demand.
The government unveiled the target during a side event at London Climate Week held in London on March 24, 2026.
The event was organised by the governments of the UK and Brazil in collaboration with the World Bank under the Global Clean Power Alliance (GCPA) Finance Mission.
Speaking at the meeting, the Assistant Commissioner for Electricity Development in the Ministry of Energy, Styden Rwebangila, said electricity demand in Tanzania is growing by between 10 and 15 percent annually, driven by industrialisation, economic transformation and increased access to power.
He said the government aims to add approximately 3,700 megawatts of electricity generation capacity by 2030 to support the country’s development ambitions and ensure reliable power supply for all citizens.
According to Rwebangila, limited public financing has prompted the government to create an enabling environment for greater private sector participation in energy infrastructure projects, particularly in electricity transmission.
He noted that through the National Energy Compact, Tanzania is targeting more than $4 billion in private investment to help finance key energy projects over the next five years.
The official said reforms in the legal and policy framework have opened new opportunities for investors.
These include the Electricity Act of 2008 and its 2020 amendments, as well as a 2023 Cabinet decision allowing private sector participation in electricity transmission projects.
Rwebangila said the Tanzania Electric Supply Company Limited (Tanesco) has already received expressions of interest and preliminary proposals from several investors, indicating growing confidence in the sector.
However, he noted that further work is needed to strengthen project preparation and establish effective risk-sharing mechanisms between the government and private investors to ensure successful implementation of future energy projects.
The government views increased private sector involvement as critical to expanding power infrastructure, improving energy security and supporting Tanzania’s long-term economic growth.
