By Business Insider Reporter
The African Development Bank (AfDB) has approved a landmark $282 million investment to connect Zanzibar and Mafia Islands to Tanzania’s mainland power grid, in a move expected to triple electricity capacity, unlock economic potential, and accelerate the country’s clean energy transition.
The five-year project will see the installation of submarine high- and medium-voltage cables, boosting total installed capacity on Unguja, Pemba, and Mafia from 143 megawatts (MW) to 440 MW.
Beyond infrastructure, it will also deliver clean electric cooking appliances to over 335,000 Tanzanians, and expand electricity access to 465,000 people currently underserved.
For Tanzania, the impact is wide-ranging. Electricity access currently stands at just 46%, and nearly 90% of households still rely on charcoal or firewood for cooking.
This project directly supports national targets of 75% electrification and clean cooking adoption by 2030, under the ambitious Mission 300 initiative – co-led by AfDB and the World Bank to connect 300 million Africans to electricity within the decade.
“This investment will help modernise island economies, reduce reliance on expensive diesel, and create jobs across sectors like tourism, logistics, and digital services,” said Patricia Laverley, AfDB’s Country Manager for Tanzania.
A boon for Zanzibar tourism, trade
Zanzibar’s tourism-driven economy, which contributes 30% to its GDP, has long been hampered by unreliable electricity. The new grid connection will stabilise power for hotels, resorts, transportation services, and local industries – creating a more attractive environment for foreign and domestic investment.
By reducing diesel dependency and stabilising voltage, the project will also lower operational costs for small businesses, schools, and hospitals – improving service delivery and supporting inclusive growth.
Clean Cooking: Empowering women
A central component of the project is the rollout of electric stoves and induction cookers to households, particularly those headed by women.
This will significantly cut time spent collecting firewood, reduce exposure to smoke-related illnesses, and enhance safety – especially for women and girls vulnerable to gender-based violence during firewood collection.
The project also includes training and distribution support, ensuring affordability and uptake of clean cooking solutions in remote communities.
Job creation, economic empowerment
From construction to operations, the project is expected to create hundreds of jobs, with a focus on youth and women. It will stimulate entrepreneurship in hospitality, agro-processing, digital services, light manufacturing, and transport.
The new grid infrastructure will also enable e-health, e-learning, and mobile financial services to flourish on the islands, expanding digital inclusion and access to essential services. The investment aligns with the AfDB’s Ten-Year Strategy (2024–2033) and the High 5 priorities: Light Up and Power Africa, Industrialize Africa, and Improve Quality of Life. It also complements Sustainable Development Goal 7: universal access to affordable, reliable, and sustainable energy.
