190 billion USD to finance electricity access

Tanzania aims to achieve universal electricity access by 2030. Thus, the East African country will host the African Heads of State Summit on the Energy Pact. Currently, more than 90 % of Tanzania’s villages are connected to electricity.

Tanzania’s energy sector is progressing towards its ambitious goals, notably achieving universal electricity access by 2030. This statement was made by Dr. Doto Biteko, Deputy Prime Minister and Minister of Energy. He announced the country’s direction towards exploiting its electricity production surplus to meet the energy needs of neighboring countries.

Key projects are underway, such as the Julius Nyerere Hydropower Project (JNHPP), which is expected to contribute 2,115 MW to the national grid. According to the minister, ” These efforts are part of Tanzania’s preparation to host the African Heads of State Energy Pact Summit in January 2025.” An event that highlights the country’s role in the African energy landscape.

Best practices for other African countries

Tanzania was chosen by the African Development Bank (AfDB) to host the African Heads of State Summit on the Energy Pact. The country was selected due to its commitment to extending electricity access to rural and peri-urban areas.

As a result, it can offer best practices to other African countries in terms of rural electrification. ” Currently, almost all villages in the country are connected to electricity,” announced the minister.

The country is a model for rural electrification on the continent. Additionally, as the government commits to providing electricity to more than 300 million people across Africa by 2030, Tanzania is at the forefront of this remarkable transformation. Several partnerships with neighboring countries have been concluded, notably with Rwanda, Burundi, Uganda, and Zambia, to supply them with electricity.

The Permanent Secretary of the Tanzanian Ministry of Energy, Engineer Felchesmi Mramba, calls on private sector actors to explore opportunities and form partnerships that will help achieve the goal of universal energy access. Approximately 12,278 villages, or 99.7 % of all rural areas, are already connected to the national grid or other sources. Additionally, 32,827 hamlets out of 64,359 are connected to electricity, representing 51 % of the country’s sub-rural areas.

Strengthening key sectors

Electrifying villages strengthens key sectors such as education, healthcare, business, and transportation. With more than 12,905 educational and healthcare facilities now connected to electricity, the delivery of public services has improved. The country’s investments in alternative energy sources, including solar, geothermal, and wind energy, are expected to increase its electricity production capacity. This expansion should reach about 1,100 megawatts.

These efforts attract investments in the industrial sector. The number of factories producing energy-related equipment, such as poles and cables, has increased from 23 in 2020 to 78 in 2024.

Expansion in rural areas

Electricity is the backbone of economic and social development. So far, Tanzania has significantly increased its electricity production. The country currently generates 1,410 megawatts from six turbines.

” By improving access to electricity, we enable citizens and entrepreneurs to contribute to the national economy. This increases national income and improves the lives of every Tanzanian,” declared Engineer Mramba.

The latest report on electricity access and usage in Tanzania by the National Bureau of Statistics (NBS) was published in 2020. In this report, the NBS indicated that 69.6 % of rural citizens had access to electricity and the overall national coverage was 78.4 %.

According to the 2022 census report, mainland Tanzania has over 59 million inhabitants. Among them, approximately 46 million have access to electricity, including more than 27 million rural residents. Currently, the NBS is conducting another assessment to determine the level of electrical coverage in rural areas as of this year.

The Rural Energy Agency (REA) confirms that it has extended electricity access to 12,240 villages across the country by October 2024, with a coverage rate of 99.1 % of all villages. The Director of Rural Electrification, Engineer Jones Olotu, stated : ” When we started, only 506 villages out of 12,318 had electricity. Today, we have reached 12,240 villages, leaving only 0.9 % without electricity.”

Support for small producers

This success reflects the government’s determination to provide essential services to rural communities. Currently, only 78 villages remain to be electrified, and entrepreneurs are already working towards this goal. The objective is to electrify all villages and then focus on hamlets, where some work is already underway.

Known as the Tanzania Rural Electrification Expansion Program (TREEP), the World Bank-funded project operating under the aegis of the Rural Electrification Agency (REA) aims to support increased electricity access in Tanzania’s rural areas. TREEP’s goals include increasing the supply of renewable energy in rural areas and strengthening the sector’s institutional capacities.

” TREEP is a contribution to the country’s national rural electrification program through both grid and off-grid approaches,” explains the World Bank report on the progress of the Tanzania Rural Electrification Expansion Program it funds. This includes supporting small private electricity producers (PPE) and other distributors of renewable energy sources such as home solar systems (SHS). The program’s approach builds on Tanzania’s experience under a previous project, the Tanzania Energy Development and Access Expansion Project (TEDAP).

Project consistent with the government’s national strategy goals

The goal of the development project and expansion of energy access in Tanzania is to improve the quality and efficiency of electrical service delivery. Additionally, it aims to establish a sustainable basis for energy access expansion. Thus, this project is consistent with the government’s National Strategy goals for growth and poverty reduction.

The project consists of three components :

• A grid component focusing on urgent investments in Tanzania Electric Supply Company Limited’s (TANESCO) transmission and distribution network.
• An off-grid component to support the institutional establishment of the Rural Energy Agency (REA).
• A component to help develop and test new off-grid electrification approaches for future scaling and technical assistance.