Tanzania Energy Budget 2021/2022: Power Generation is Priority

Tanzania energy budget 2021-2022

Tanzania’s Minister of Energy Dr. Medard Kalemani has presented to parliament the ministerial budget for the financial year 2021/22, which will focus on power generation, rural electrification, oil and gas exploration, and development of the Uganda-Tanzania oil pipeline.

Dr. Kalemani stressed that the Ministry will continue to implement various power generation projects to reach 5,000 MW of installed capacity in the next five years.

These include the Julius Nyerere Hydroelectric Power Project (2,115 MW), Ruhudji (358 MW) and Rumakali (222 MW), the extension of Kinyerezi I (185 MW), Rusumo (80 MW), Malagarasi (49 MW), Mtwara (300 MW) and Somanga Fungu (330 MW).

The Government will also continue to implement numerous projects to strengthen electricity transmission throughout the country and attract investments in the energy sector.

For this, 98.9% of the tabled budget of TZS 2.38 trillion will be used for development projects. TZS 2.17 trillion would be mobilized from domestic sources.

Tanzania Power Production

Tanzania’s electricity generation comes mostly from natural gas (48%), followed by hydropower (31%), petrol (18%), solar (1%), and biofuels (1%).

Want to know more about Energy in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers Energy, plus regulations, key sectors, and investment opportunities — all in one place.

Download Free Guide
Related Posts
Songo Songo Offshore Gas
Read More

Tanzanian-Led Consortium To Take Full Control of Songo Songo Gas Field as Orca Energy Exits for USD 10

Orca Energy Group has signed a definitive agreement to sell its entire Tanzanian gas business—including the Songo Songo gas field—to Taifa Gas Tanzania and Amber Energy Investment for a nominal USD 10, citing significant contingent liabilities and uncertain license renewal prospects. The Songo Songo gas field divestiture transfers 100% of Orca's operating assets to a buyer group led by Taifa, one of Tanzania's leading LPG companies, pending regulatory and shareholder approvals.
EACOP April 2026 Update
Read More

East African Crude Oil Pipeline Reaches 82% Completion

The East African Crude Oil Pipeline (EACOP) has reached 82% overall completion as of April 2026, with construction progressing across pipeline sections, pump stations, and the Chongoleani Marine Terminal in Tanga. The 1,443-kilometre pipeline is advancing steadily toward First Oil, with all line pipes delivered and the marine jetty at 88.1% completion.
Tanzania Mnazi Bay Gas Well
Read More

Tanzania Seeks Strategies to Revitalize Petroleum Exploration Activities

The Ministry of Energy instructed the Petroleum Upstream Regulatory Authority (PURA) and Tanzania Petroleum Development Corporation (TPDC) to seek strategies to revitalize petroleum exploration activities in Tanzania and add investment blocks. Officials highlighted the drop from 26 to 11 active Production Sharing Agreements and emphasized creating an enabling environment for exploration, including collaborations with Multi-Client Geophysical Companies.