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.

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.

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 Tanzania Business and Investment Guide 2026 covers Mining, plus regulations, key sectors, and investment opportunities — all in one place.

Download Free Guide
Related Posts
Tanzania Helium One Agreements Signing Southern Rukwa Project
Read More

Tanzania Finalises Agreements for First Helium Mining Licence, Clearing Southern Rukwa Project for Development

Helium One Global (AIM: HE1) and the government of Tanzania have executed the Framework Agreement and Shareholders' Agreement supporting Tanzania's first-ever helium mining licence, activating the 480 km² Southern Rukwa Project under joint venture Songwe Helium Ltd, in which Helium One holds an 83% interest. The company has also appointed PVE Consulting to lead the farm-out process for the project, which flowed 5.5% helium to surface during its 2024 extended well test.
Dodoma Region Investment Guide
Read More

Tanzania Government Calls for Investment in Dodoma Mining, Agriculture, Tourism and Trade

Tanzania's Finance Minister and the Dodoma Regional Commissioner have jointly called on investors to tap into opportunities in Dodoma's mining, agriculture, tourism, and trade, with mining flagged as the region's largest potential through value addition. Specific openings include a proposed dry port to leverage Dodoma's central location at the heart of Tanzania, the construction of five-star hotels and international conference centres, and the development of mineral processing facilities, alongside the rollout of the Tourism Development Strategy for Dodoma Region 2025–2030.
Anthony Mavunde Parliament Bunge
Read More

Tanzania’s 2026/27 Mining Budget Sets Ambition for Critical Minerals Leadership and Top-4 Global Niobium Producer Status

Tanzania's Ministry of Minerals has tabled a TZS 174.98 billion budget for FY 2026/27, with a revenue collection target of TZS 1.41 trillion from a sector whose GDP contribution has climbed to 11.9% and whose exports rose 31.1% to USD 5,401.9 million in 2025. The budget prioritises critical and strategic minerals, the Panda Hill niobium project expected to make Tanzania a top-4 global producer, the Buzwagi value-addition hub, and expanding geophysical survey coverage to 50% of the country by 2030.
Tanzania mineral processing
Read More

Tanzania to Build Mineral Processing Center in Shinyanga to Boost Value Addition

The Tanzanian government plans to establish a Mineral Processing Center in Mwakitolyo, Shinyanga Region, to deepen mineral value addition and expand local participation in the mineral value chain. Deputy Minister for Minerals Dr. Steven Kiruswa highlighted the initiative in Parliament, emphasizing the need to build technical capacity among youth and women from exploration to processing.