Tanzania Electricity Supply Company Seeks Project Funding

A recent report by The Citizen has indicated that the Tanzania Electricity Supply Company (Tanesco) is currently seeking USD 1.6 billion in order to rehabilitate its infrastructure and enhance the Tanzania power sector by enhancing the overall supply of its resources.

According to The Citizen, Tanesco has already begun working on a five-year Capital Investment Programme (CIP) in order to begin rehabilitating the country’s power sector, which is expected to help reduce the country’s yearly power consumption from 23 percent to as little as 20 percent by 2010.

To this end, the country’s currently erratic and unreliable transmission of electricity has been attributed to the current weak state of Tanesco’s infrastructure.

“For a long time now, there hasn’t been any major improvement of power supply infrastructure, this has resulted in a lot of power wastage, shortages and power rationing,” said the Tanzania minister of Energy and Minerals, William Ngeleja, earlier this week after having submitted a ministry report to the Parliamentary Committee on Energy and Minerals.

Tanzania Investment Guide 2026 Free Edition

Mr. Ngeleja went on to say that some of the contributors to the project, such as TEDAP, MCC, ADB, JICA and South Korea, had already approved a total of USD 285 million to designated to this project.

Nevertheless, the state-owned power utility is currently still seeking to acquire an additional USD 300 from various other financiers in order to pay for the restoration of its infrastructure within the designated five-year period.

According to Mr. Ngeleja, the implementation of the project in the regions of Arusha, Dar es Salaam and Kilimanjaro would be completed under the control of TEDAP, with additional projects also being carried out in the regions of Dodoma, Iringa, Mbeya, Morogoro, Mwanza and Tanga.

Overall, the Tanzania energy and minerals minister said the total of all of the upcoming electricity projects to be implemented countrywide would cost approximately TZS 9 billion and, upon completion, the project will allow for a total of 1,116 customers to be connected to the national grid.

In the meantime, Mr. Ngeleja has said that the Rural Energy Agency (REA) has also authorized a grant of TZS 17,895 million in order to complete various projects relating to the power sector in various areas of the country that have been specifically marked as a priority.

TanzaniaInvest Capital Markets Report Banner

In addition, Tanesco has also approved a package of TZS 491 million to be used in order to compensate the owners of the properties that will be affected by the power projects in Bunda, Serengeti, Ukerewe and Urambo.

Want to know more about Mining in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Mining, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Related Posts
EU-Tanzania Roadshow 2026 APM Terminals at Maasvlakte Rotterdam
Read More

EU–Tanzania Roadshow Ends With Rotterdam and Antwerp Port Visits as Tanzania Pitches Port, Rail and Logistics Opportunities to European Companies

The EU-Tanzania roadshow ended in Antwerp on 6 October 2026 after port visits in Rotterdam, with Tanzania's port and rail authorities pitching openings for terminal operators, EPC contractors, private rail operators and digital rolling stock tracking, while rail operator Vecturis, minerals logistics group Polytra, heavy lifting company Sarens and marine data company GEOxyz outlined their plans in Tanzania. The EU said it will join the World Bank and the EIB, which has a formal financing request, in supporting the Dar es Salaam port expansion, and offered Global Gateway guarantees, equity and feasibility funding for company projects screened by member states.
EU-Tanzania Roadshow 2026 The Hague day 1 opening Mkumbo
Read More

EU–Tanzania Roadshow Reaches The Hague With Coffee, Cashew, Critical Minerals, and Port Investment Pitches

The EU-Tanzania roadshow reached The Hague on 5 October 2026 for its final leg, where Tanzania pitched coffee and cashew processing, wheat and edible oils, critical minerals, the new Bagamoyo and Mwambani ports on the mainland, Zanzibar's Mangapwani port hub, four dry ports, and two new lines of the standard gauge railway network to around 90 businesses. Agriculture emerged as the priority sector for European and Dutch investors, with the best opportunities in food production and value addition, backed by Dutch expertise as the world's second-largest agricultural exporter.
EU-Tanzania Roadshow 2026-2027 Helsinki day 2 critical minerals visit
Read More

Tanzanian Delegation Visits EU’s Only Nickel Smelter, Metso Research Center, and Nokia on Day Two of EU-Tanzania Roadshow in Finland

On 29 September 2026, the second day of the EU-Tanzania roadshow in Finland, the Tanzanian delegation visited Metso's Pori Research Center, where around 180 experts work on mineral processing, hydrometallurgy, battery materials, and smelting, and Boliden's Harjavalta site, home to the only nickel smelter in the EU. The digital track included visits to Nokia, the Finnish Information Security Cluster, and technology company Gofore, with talks on digital sovereignty, digital public infrastructure, and Tanzania's move to a cashless economy.