Tanzania sees the completion of 9.7bn/-Mtera Power substation

DODOMA: THE Minister for Energy, Deogratius Ndejembi, will tomorrow, January 16, 2026, launch the newly-constructed Mtera power substation, a strategic facility built for 9.7bn/- to significantly strengthen electricity availability across Kongwa, Mpwapwa and Iringa districts.

Speaking to media outlets in Dodoma today, January 15, 2026,  Rural Energy Agency (REA) Director-General Eng Hassan Saidy, said the new substation marks a major step forward in ensuring a stable and reliable power supply in central Tanzania.

Eng Saidy said the project was financed by the Government of Tanzania with support from the governments of Sweden and Norway.

He said residents around Dodoma and Mtera had for years struggled with low-voltage electricity, noting that the new substation now provides a long-awaited solution to power instability.

“This project will bring tremendous benefits to citizens and the nation at large. It will increase power strength to support economic activities, including large and small industries,” he said.

According to him, the substation has a 20 MegaVolt-Amperes (MVA) capacity and is already operational, serving Kongwa, Mpwapwa and parts of Iringa.

He said the presence of the substation has eased access to electricity, stabilised voltage and significantly reduced power outages.

ALSO READ: Tanzania embarks on strategic mining deals with India, Korea

“For TANESCO, this investment has cut electricity losses along transmission lines. Previously, power had to travel from Mtera to Dodoma or from Iringa before being redirected back to Mtera, increasing losses. Now power is distributed directly from Mtera itself,” he said.

He added that the upgrade from 11kV to 33kV distribution lines allows the system to handle larger customer demand and gives TANESCO the flexibility to serve clients from multiple directions—Dodoma, Mtera or Iringa.

Eng Saidy noted that the project involved the installation of two 10MVA transformers, the construction of a switchgear building, and upgrading of the control room and communication systems.

“This is a major national investment that enables TANESCO to deliver quality service, increase distribution capacity and support socio-economic growth, especially rural industries,” he said.

In another development, REA announced that the government is expected to sign a contract for a massive rural electrification project covering 9,009 villages.

Eng Saidy said the project aligns with President Samia Suluhu Hassan’s vision of extending power supply to every hamlet in the country.

“This is a major undertaking, and the financial investment required is equally significant,” he said.

He explained that the project will be implemented through 30 contracts, at a total cost of approximately 1.2 trillion/-. The works are expected to be completed within three years, focusing on expanding electricity access and stimulating economic and social development in rural communities.

Once completed, the project will push electricity access deeper into rural areas, supporting the already-achieved milestone of covering all 12,318 villages.

Eng Saidy noted that in 2021, about 28,000 hamlets had electricity while nearly 36,000 were unconnected. Through 11 ongoing projects, the number of connected hamlets has now risen to 39,000.

“With this new project, we will remain with about 13,900 hamlets yet to be connected. With the commitment shown by the sixth -phase government, we expect to complete these before 2030,” he said.

He added that only a few countries in Africa have achieved village-level electrification nationwide, describing Tanzania’s progress as “a significant national achievement”.

“Tanzania is moving swiftly with a clear strategy to extend electricity infrastructure to every hamlet, and this project is a major step toward that goal,” he said.