In East Africa, Tanzania’s rural electrification is set to receive $67 million that has been raised by the Swedish International Development Agency (Sida) and the UK government through its Department for International Development (DFID).
Last week, the two countries engaged in an understanding in which they would provide Tanzania with a total of Tsh.241 billion ($11, 107 billion) for the development of energy in the country’s villages, the East African Business Week reported.
Enhancing rural electricification
Sweden through Sida will provide Tsh.145 billion ($66,831 billion), while the DFID will offer Tsh.96 billion ($44,247 billion) - all directed at improving energy projects.
According to the East African Business Week, an official statement said: “The main objective of the financing programme is to increase access to modern energy services in rural areas of mainland Tanzania for sustainable social economic development and poverty alleviation.”
A joint statement between the government of Tanzania, Sweden and the UK explained that the financing will be controlled through the Rural Energy Fund managed by the Rural Energy Board as well as the superiors from the Rural Energy Agency.
Collaboration to improve grid connectivity
In addition the statement revealed that the agreement is paving the way for shared provisions and procedures for the delegated collaboration between Sida and DFID for support towards the rural electrification programme.
An unnamed source told the local media that: “This fund will improve on grid energy access as well as provide new energy options for rural households not connected to the grid through mini-grids and solar home systems.”
REA is an independent organisation that became operational in October 2007, operating under Tanzania's department of Energy and Minerals.
The organisation’s obligation is to promote and facilitate access to modern energy services in the villages of Tanzania.