Economy

Tanzania’s electricity demand rises by 10–15pc annually as govt expands energy investments

Responding to this trend, the government has intensified efforts to ensure reliable electricity supply for citizens while strengthening energy infrastructure nationwide

Electricity demand in Tanzania continues to grow at a rapid pace, driven by population growth and the steady expansion of industrial and commercial activities.

Authorities say demand has been increasing by an average of 10 to 15 per cent each year, placing growing pressure on the country’s energy systems.

In response to this trend, the government has intensified efforts to ensure reliable electricity supply for citizens while strengthening energy infrastructure nationwide.

The rising demand has also prompted increased investment in the energy sector, widely regarded as a key pillar of economic growth.

Speaking at the Powering Africa Summit held in Washington, DC, on March 20, 2025, Deputy Minister for Energy, Salome Makamba, said the sustained growth in electricity demand reflects the country’s expanding economy and improving living standards.

She noted that the trend has created strong momentum for large-scale investments in power generation and related infrastructure.

She explained that as of March 2026, Tanzania’s electricity generation capacity had reached 4,383 megawatts, while peak demand stood at approximately 2,100 megawatts.

The figures indicate that current production levels exceed existing demand.

However, she cautioned that the pace of demand growth requires continued investment in generation, transmission and distribution systems to meet both present and future needs.

On electricity access, the Deputy Minister said the government had successfully extended electricity infrastructure to all villages in mainland Tanzania.

Despite this progress, household connections remain relatively low, highlighting the challenge of ensuring that more families benefit from the available infrastructure.

She emphasised that the Government aims to achieve 100 per cent electricity access by 2030.

In addition, authorities are targeting an increase in household connections to 75 per cent within the same period.

These measures are expected to support social development and stimulate economic activity across both rural and urban areas.

Tanzania possesses a wide range of energy resources, including natural gas, hydropower, solar, wind and geothermal sources.

Officials say these resources offer strong potential to meet rising demand while supporting long-term energy security.

The government also plans to continue promoting renewable energy to ensure sustainable electricity supply.

Efforts to attract private investment into the sector are expected to remain a central focus, as authorities seek to accelerate infrastructure development and improve service delivery.

With electricity demand projected to continue rising, the ongoing investments are expected to strengthen the country’s capacity to meet future needs.

The measures are also seen as positioning Tanzania to emerge as a regional energy hub, supporting economic growth and enhancing competitiveness across East and Central Africa.

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