Intensive investments reshape TZ’s energy sector

DAR ES SALAAM: ONGOING intensive investments in Tanzania’s energy sector continue to position the country as a model for best practices in electricity supply across Africa.

This recognition was reinforced by the recent decision of the World Bank and the African Development Bank (AfDB) to select Tanzania as the host for the upcoming African Energy Summit. The summit is scheduled for January 27-28 at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam.

The summit, which focuses on accelerating electricity connectivity and expanding the use of green energy across Africa, is expected to attract around 1,500 participants, including energy ministers and Heads of State and Government from across the continent.

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The event’s goal is to ensure that 300 million people in Africa are connected to electricity by 2030, hence the summit’s theme, “Mission 300.”

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The Mission 300 Africa Energy Summit is not just a symbolic event or an isolated initiative; it is a pivotal moment in the global effort to address Africa’s chronic energy deficit and advance sustainable development on the continent. The significance of Mission 300 lies in its ability to bring about transformative change across multiple sectors and for millions of people who remain without access to energy.

In a recent televised programme, Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, explained that one of the key reasons Tanzania was chosen to host the summit is its achievements in connecting nearly all of its villages to electricity.

“Through this summit, we expect to share experiences with other African countries on how to accelerate electricity access across the continent,” Dr Biteko said.

Tanzania has successfully provided electricity to both rural and urban areas, a major step towards meeting the summit’s objective of providing power to 300 million Africans by 2030. Currently, more than 600 million Africans still lack electricity.

“The country has made significant strides in the energy sector and we commend President Samia Suluhu Hassan for her tremendous push in this area. Today, Tanzania has sufficient and even surplus electricity, with generation rising from 1,470 megawatts four years ago to nearly 3,077 megawatts to date,” Dr Biteko noted.

The increase in electricity generation is partly due to the activation of six turbines at the Julius Nyerere Hydropower Project (JNHPP), which together contribute 1,410 megawatts (MW), with each turbine generating 235 MW.

While electricity access in Africa remains below 50 per cent, Tanzania has made impressive progress, reaching over 78 per cent. Dr Biteko revealed that all 12,318 villages in Tanzania are now electrified.

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“Having connected all villages, our next focus is on the hamlets,” he added. “Tanzania has 64,359 hamlets and approximately 36,000 of them are already connected to electricity.”

A recent assessment by the World Bank ranked Tanzania as a leader in providing electricity to rural areas.

The Mission 300 initiative will bring significant benefits to Tanzania, including increased opportunities to secure funding for energy projects, enhanced investment prospects and the exchange of best practices with successful energy entities. It will also boost Tanzania’s international reputation.

By 2030, an additional 8.3 million Tanzanians are expected to be connected to electricity under the initiative, increasing the total number of connected customers to 13.5 million, up from the current 5.2 million.

In May 2024, Tanzania launched the National Clean Cooking Energy Strategy, which aims to increase the use of eco-friendly cooking solutions to 80 per cent by 2034, up from the current 10 per cent. The strategy is projected to cost 4.6tri/- over the next decade.

The clean cooking initiative aligns with President Samia Suluhu Hassan’s launch of the Africa Women Clean Cooking Support Programme (AWCCSP) at COP28 in Dubai in December 2023, which advocates for clean cooking solutions across Africa.

Dr Biteko also credited Tanzania’s selection as the host of the African Energy Summit to the country’s strengthened economic diplomacy under the visionary leadership of President Samia.

“Dr Samia has done an incredible job in promoting Tanzania on the global stage as a prime destination for business and investment,” he said. “This is exemplified by the choice of Tanzania to host this major international summit, which will be attended by leaders from 54 African countries.”

Economist and investment banker Dr Hildebrand Shayo commended Tanzania’s rural electrification efforts, noting that electricity in rural areas has boosted trade through the use of electrical appliances like refrigerators.

“Electrification has extended working hours during the day and evening, benefiting local economies,” Dr Shayo said.

In his ongoing research on the economic impact of rural electrification, Dr Shayo found that the number of shops per 1,000 people in electrified villages is 4.28, compared to just 3.43 in non-electrified villages a 25 per cent difference.

He also noted that electrified villages show greater institutional development, including the presence of health centres and dispensaries.

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“I can assert that electrification dramatically improves the general standard of living in rural areas, reduces rural-to-urban migration, boosts industrial and agricultural production and creates more jobs,” Dr Shayo added.

One villager, Mr Peter Nzema (30) from Bukumbi Village in Shinyanga Region, expressed gratitude for the government’s efforts to bring electricity to their community. His village, which was connected in 2023 after decades without power, is already seeing improvements in economic activity, including the establishment of a maize mill by a local investor.

“Bukumbi is undergoing a transformation, with residents opening saloons and shops,” Mr Nzema said. “We used to dream of having electricity and now it’s a reality.”

Mr Innocent Luoga, the Ministry of Energy’s Commissioner for Renewable Energy, said that the summit will strengthen commitments among African countries to invest in power generation and  supply.

“The summit will also feature the signing of National Energy Compacts by 14 countries, including Mali, the Democratic Republic of Congo (DRC), Ivory Coast, Burkina Faso, Chad, Liberia, Nigeria, Niger, Madagascar, Malawi, Mauritius, Mozambique, Zambia and Tanzania,” Mr Luoga said.

These compacts will guide the first phase of “Mission 300,” from 2025 to 2030, with the goal of achieving universal electricity access in Africa. The summit aims to raise 190 billion US dollars (about 519tri/-) to provide electricity to 300 million people across the continent.

The Mission 300 Africa Energy Summit is not an endpoint but a launchpad for an accelerated energy revolution in Africa. It represents a shared commitment to tackling one of the most urgent challenges facing the continent and the world. As the summit unfolds, it will produce actionable outcomes, such as funding commitments, strategic partnerships and policy frameworks, all of which will contribute to the realisation of the Mission 300 goal.

Through unity, collaboration and sustained effort, the Mission 300 Africa Energy Summit will drive the momentum needed to ensure that millions of people in Africa who are currently without electricity gain access to clean, affordable and reliable energy. This summit stands as a critical milestone, marking both a moment of reflection on the progress made so far and a rallying cry for the ambitious work still to come.

The world is watching and now is the time for action. The Mission 300 Africa Energy Summit is a clarion call for bold leadership, transformative solutions and unwavering commitment to a future where energy poverty is no longer a barrier to Africa’s development.