Africa Energy Expo is part of the Informa Markets Division of Informa PLC

Informa
Informa

Tanzania's Energy Landscape

Installed capacity (MW) Source: Energy Information Administration (EIA)


Attributes

Tanzania is a country located in East Africa, known for its extensive wilderness areas, including the Serengeti National Park, the Ngorongoro Conservation Area, and the Selous Game Reserve (National Geographic). 

Tanzania still faces challenges in providing access to electricity, especially in rural areas. As of 2020, only about 36% of the population had access to electricity, while the rest depended on traditional sources like kerosene lamps and firewood (World Bank). To address this issue, Tanzania has set ambitious targets for expanding access to electricity and plans to increase electrification rates to 75% by 2035, mainly through investments in renewable energy sources like solar and wind power (IRENA). Tanzania's electrification rate is at 22 rurally and 72.9 in urban areas.

Tanzania has the potential to become a leader in renewable energy production in the region due to its abundant sunshine and wind resources. The government has already launched a 300 MW wind power project in the southern part of the country, and it is also working on several other renewable energy projects, including a 2.1 MW solar power plant in Dodoma and a 35 MW geothermal power project in the Rift Valley region (IRENA). Through these efforts, Tanzania is moving towards a more sustainable and reliable energy future.

Economic landscape

Tanzania's economy has been significantly impacted by the COVID-19 pandemic, leading to a decline in foreign investment and a decrease in economic activity. The Tanzanian government has responded by implementing various regulatory reforms aimed at attracting more investment and promoting renewable energy. (World Bank)

As the global economy recovers from the pandemic, Tanzania's GDP growth is expected to increase, with a projected growth rate of 4.5% in 2023 compared to 2.5% in 2022. (African Development Bank) However, the country's inflation rate has seen a continuous rise since 2022, mainly driven by an increase in food prices.

While inflation is projected to decrease gradually, it is expected to remain high in the short term, posing a challenge to the government's efforts to promote economic growth. (Bank of Tanzania, Trading Economics)

Opportunities

Opportunities for Tanzania's energy sector have emerged, especially in the renewable energy space. In 2023, Tanzania launched a 300 MW wind power project in the southern part of the country, and it is also working on several other renewable energy projects, including a 2.1 MW solar power plant in Dodoma and a 35 MW geothermal power project in the Rift Valley region. (IRENA)

Tanzania's abundant sunshine and wind resources make it a potential leader in renewable energy production in the region. The government's efforts to expand access to electricity, particularly in rural areas, through renewable energy investments are expected to create opportunities for increased economic growth and development. (World Bank)

Furthermore, Tanzania's energy landscape presents opportunities for foreign investors. The government has implemented various regulatory reforms aimed at attracting more investment, leading to an increase in foreign direct investment in the energy sector. (World Bank) With continued investment in renewable energy and a favorable investment climate, Tanzania is poised to become a significant player in the energy sector.