Rural Energy Fund

Tanzania’s rural electrification expansion programme is set to receive $200 million approved by the World Bank, provided by the International Development Association.According to the World Bank the rural electrification expansion programme seeks to build on the recent achievements accomplished in 2014 of expanding nationwide access to 36% in the east African country.

The national rural electrification programme (2013–2022) under which the new programme is to be implemented, includes both on-grid and off-grid solutions and has four priorities. These priorities are centred around the connection of new customers to the grid in already electrified settlements, new connections to the grid, electrification through off-grid investments and the development of distributed technologies, particularly off-grid solar and other renewable technologies.

Rural electrification expansion programme boosting opportunities

Bella Bird, World Bank country director for Tanzania, commented: “Access to electricity is critical to extend economic opportunities and reduce poverty. This programme not only offers the opportunity for many more Tanzanians to have access to power in their homes and businesses, but also enables small power producers to access finance to invest in production, including with renewable energy sources.”

[quote]It is reported that Tanzania’s government is currently implementing a national energy policy, which aims to increase the country’s overall electricity connectivity to 50% by 2025 and to at least 75% by 2033.

The banking group explained that under the national electrification programme, bank financing will also benefit 25,000 education facilities, 25,000 health facilities, and 150,000 businesses. Small power projects are also said to benefit from access to capital enabling them to contribute 33MW in renewable energy under the programme.

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