EWURA’s bold moves in CNG for Tanzania’s energy future

DAR ES SALAAM: THE Energy and Water Utilities Regulatory Authority (EWURA) is not just sitting back and letting the world go by. No, it is stepping up its game in a major way, making sure that Tanzania’s transition to compressed natural gas (CNG) is a smooth ride for everyone involved-investors, consumers and of course, the environment.

With the country’s abundant natural gas resources, EWURA is doing everything in its power to create an attractive environment for investment in the CNG sector, all while pushing Tanzania closer to its goal of adopting clean energy solutions.

We heard it from EWURA’s Director of Natural Gas, Poline Msuya, during the recently concluded 11th East African Petroleum Conference and Exhibition (EAPCE’25) in Dar es Salaam.

This conference was a big deal for all things oil and gas in East Africa and EWURA made sure its efforts to promote CNG were front and centre.

Msuya’s message was clear: EWURA is not just talking the talk, but walking the walk when it comes to creating an appealing environment for investors looking to get into the CNG game.

One of the most notable moves in this regard? The removal of the Value Added Tax (VAT) on essential CNG infrastructure.

Let us face it: taxes are not the most exciting thing to talk about, but when they go down, it is like the heavens have opened.

By eliminating VAT on key infrastructure, EWURA is giving a helping hand to investors, making it easier and more affordable to set up shop and get things moving in the CNG sector.

The aim here is simple: reduce operational costs and smooth out the process of establishing CNG infrastructure, making Tanzania an even more attractive destination for investment.

Ms Msuya was quick to point out that this is not just about building a fancy infrastructure; it is about switching gears from traditional fuels like petrol and diesel to CNG, which will bring a number of benefits to the table.

Not only will this shift help reduce carbon emissions (always a good thing for the planet), but it’ll also provide a cleaner and more cost-effective alternative for consumers.

Sounds like a win-win, right? And with Tanzania sitting on a goldmine of natural gas, the opportunity to make this switch is as real as it gets.

But that’s not all. EWURA is not just handing out tax breaks and hoping for the best.

The authority is also hard at work simplifying the regulatory process to make it easier for investors to dive into the CNG space.

She further explained that EWURA has streamlined the procedures for obtaining construction permits and operating licenses, making sure that investors can get their CNG stations up and running without unnecessary delays.

This proactive approach is part of EWURA’s broader strategy to boost the energy sector and encourage private sector participation in the country’s energy future.

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On his part, EWURA’s Director General, Dr James Andilile, also took time to highlight the importance of these initiatives during the fourth EWURA Workers’ Council meeting in Tanga.

At the meeting, which was opened by none other than the Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, Dr Andilile reiterated that these steps are in line with directives given by the Deputy Prime Minister during the previous year’s EWURA Workers’ Council meeting in Morogoro.

It’s clear that EWURA isn’t just making moves on a whim it’s all part of a bigger plan.

Dr Andilile emphasised that the regulatory authority is continuing its work to make it easier for investors to tap into opportunities, not only in CNG but also in rural fuel stations.

EWURA has made huge strides in reducing bureaucratic hurdles and offering clearer guidelines, resulting in faster approvals and licenses for CNG stations.

The impact is already visible: in the 2022/23 financial year, two CNG stations received construction approvals and that number jumped to six in the 2023/24 financial year.

This steady growth shows that EWURA is on the right track in supporting the shift to cleaner, more sustainable energy options for the country.

Speaking of rural areas, EWURA’s efforts to bring energy to underserved communities are especially noteworthy.

The authority is working hard to make it easier for investors to set up fuel stations in rural Tanzania, a move that will significantly boost energy access in these areas.

In fact, EWURA has introduced several measures to reduce the costs of establishing rural fuel stations, such as slashing the construction permit fee from 500,000/- to a mere 50,000/- and cutting the license fee from 1m/- to just 100,000/-.

If that doesn’t sound like a game-changer, I don’t know what does! But it gets even better. EWURA has simplified the Environmental Impact Assessment (EIA) process for rural fuel stations.

Instead of requiring a lengthy certificate from the National Environmental Management Council (NEMC), investors are now only required to submit a letter from the local council confirming that the proposed site is suitable for construction.

This change has made it much easier for investors to get started on setting up rural fuel stations, which is a huge step forward in addressing the energy access challenges faced by rural communities.

Another important change is the reduction in land ownership requirements for investors looking to build rural fuel stations.

Previously, investors had to provide a title deed, but now they can submit a village meeting resolution confirming community approval for the construction of a fuel station.

This step ensures that local communities are involved in the decisionmaking process, making the process smoother and ensuring that the projects have community backing.

These measures have already led to significant progress.

The number of rural fuel stations has been steadily increasing, with the total rising from 279 stations in the 2020/21 financial year to 480 in the current year.

By December 2024, it’s projected that the number of rural fuel stations will reach 515.

This growth is vital in ensuring that rural populations across Tanzania have access to reliable energy, which is crucial for economic development and quality of life.

In addition to EWURA’s efforts, the government, through the Rural Energy Agency (REA), is offering low-interest loans to individuals and businesses interested in investing in rural fuel stations.

This initiative aims to reduce financial barriers for investors and ensure that energy supply reaches all corners of the country.

Dr Andilile couldn’t stress enough that all these measures are part of EWURA’s broader strategy to build a sustainable energy ecosystem in Tanzania.

He pointed out that the transition to CNG as a cleaner alternative to traditional fuels is not only important for the environment but also for the country’s long-term energy security.

After all, with Tanzania’s natural gas reserves, the country is in a prime position to create a reliable and sustainable energy future for generations to come.

At the end of the day, EWURA’s work isn’t just about making life easier for investors it’s about ensuring that Tanzanians, from the bustling cities to the remote rural areas, have access to clean, affordable and sustainable energy.

The road ahead may be long, but with the right policies, the right investments and the right partnerships, Tanzania is well on its way to becoming a leader in clean energy.

And, just to wrap things up with a cherry on top: the Deputy Prime Minister Dr Biteko, has directed EWURA to carry out an intensive evaluation of all utilities under its jurisdiction.

This evaluation will look at areas that need more regulatory oversight, especially when it comes to ensuring utilities meet customer service standards.

So, it’s safe to say that EWURA isn’t slowing down anytime soon.

Keep an eye on this space it’s going to be an exciting ride!