Tanzania To Benefit From USD 1.1 Million Off-grid Energy Challenge Grant To Boost Clean Energy

Tanzania-Off-grid-Energy-Challenge

Tanzania has been recently named as one of eleven countries in the Sub-Saharan region to benefit with a USD 100,000 grant from three US non-profit organizations.

The amount awarded is meant to expand the use of clean energy in the country and is one of eleven USD 100,000 grants to be distributed between eleven countries in the region to promote renewable energy projects.

The program called Off-grid Energy Challenge, is part of the Beyond the Grid Initiative organized and funded by General electric Africa, US African Development Foundation (USADF) and the US Agency for International Development (USAID).

The challenge is expected to benefit 39 start-up companies in the clean energy industry with a total award of USD 3.9 million for the winning projects, which will be released from now up to the end of 2018.

In Tanzania, Lupali district which has been granted with the first USD 100,000, will use the funds to connect neighboring villages to St. Gertrude Convent low-cost off-grid hydro power, with a generation capacity of 317 KW and developed with the support of the UN Conference on Financing for Development (UNCFD) at a total cost of USD 1.9 million.

This project and future ones are expected to provide electricity and light to more than 10,000 people and are meant to support the initiative’s goal of encouraging more entrepreneurs in the clean energy industry, which have helped rural communities to access power by implementing solar-powered mini-grids, home solar systems and increasing credit funds’ liquidity, explained the organizers in a joint statement.

The initiative expects to triple the power generation in the Sub-Saharan region by adding 30,000 MW and 60 million connections according to a US President Barack Obama statement during the first US-Africa Leaders’ Summit in August, 2014 when he unveiled the initiative’s final goal.

Tanzania plans to increase its generation capacity from the current installed 1,308 MW to 2,780 MW with the initiative.

Tanzania ranks fourth in the list of the eleven benefited countries in terms of increase on power generation, with Nigeria topping the list with a goal of 11,445 MW from the 6,000 MW currently installed according to USAID.

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
Tanzania Kenya Rwanda
Read More

Tanzania Hosts Rwanda and Kenya Presidents, Signs MoUs on Tanga-Taveta SGR, Dar-Mombasa Gas Pipeline, and Scraps Non-Tariff Barriers

Tanzania hosted Rwandan President Paul Kagame on 3 May 2026 and Kenyan President William Ruto on 4-5 May 2026, signing eight MoUs with Kenya covering railways and a Dar es Salaam-Mombasa gas pipeline study, and agreeing to eliminate all non-tariff barriers by May 2026. Bilateral trade with Rwanda reached TZS 644 billion in 2025, while Tanzania-Kenya trade stood at over USD 720 million in 2024.
Dangote Tanzania Oil Refinery Pledge
Read More

Dangote Pledges 650,000 Barrels per Day Oil Refinery in Tanga, Tanzania, Linked to EACOP

Aliko Dangote has committed to building a 650,000 barrels per day oil refinery at the Port of Tanga, Tanzania, modelled on his USD 20 billion Lagos plant and to be delivered within four to five years, subject to government agreement. The Tanzania oil refinery would process crude from the DRC, Kenya, South Sudan, and Uganda, supported by a new pipeline linking Mombasa to Tanga and connecting to the East African Crude Oil Pipeline (EACOP).
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.