HomeRegional NewsEast AfricaTanzanian energy projects to get $1.9bn per year

Tanzanian energy projects to get $1.9bn per year

In East Africa, Tanzanian Prime Minister Kassim Majaliwa last week stated that government targets to invest $1.9 billion each year through to 2025 in energy projects. The investment will go towards efforts to do away with power shortages and boost industrial growth across the country.

Local media reported that Tanzania plans to enhance its power generation capacity to 10,000MW from the presently estimated 1,500MW, using natural gas and coal while reducing dependence on hydropower sources.

Majaliwa said: “Tanzania’s electricity sector faces another important challenge. As it is heavily dependent on hydropower, energy provision cannot be ascertained in times of drought.”

He continued: “Severe and recurrent droughts in the past few years triggered a devastating power crisis as electricity generation in most of the hydropower stations have progressively been declining in recent years, occasionally resulting in long hours of power black outs.”

According to the media, Majaliwa said the government wants to see more private capital investment in the energy sector.

Tanzanian energy projects need funding

“The projected power projects funding exceeds the existing government fiscal space. To attract private capital, the government is improving institutional set up, legal and regulatory frameworks.”

It is reported that investors have been complaining about the lack of reliable power making it difficult to do business in Tanzania.

Koyo Corporation to invest $1 billion

In recent news, it was reported that Japan’s Koyo Corporation seeks to invest $1 billion in a gas-fired power plant near big offshore natural gas fields off the African country’s southern shore.

Reuters reported that earlier this year, Tanzania announced that it had discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits in an onshore field, raising its total estimated recoverable natural gas reserves to more than 57 tcf.

“Koyo Corporation plans to build a 1,000MW gas-fired power plant in Tanzania,” the prime minister’s office said in a statement.

The media also reported that Tanzania’s energy ministry said the country is planning to build a 100MW geothermal power plant within the next seven years.

Tanzania aims to add about 2,000MW of new gas-fired electricity generation by 2018 to increase Tanzania’s generating capacity to 10,000MW by 2025.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.