By Correspondent Farida Ramadhani, Cotonou
Tanzania is targeting electricity generation capacity of more than 8,000 megawatts by 2030/31 as the government steps up efforts to secure the energy supply needed to drive industrialisation, attract investment and support its ambition to build a US$1 trillion economy by 2050.
The target reflects the growing importance of reliable electricity to Tanzania’s economic transformation, with expanding industries, new infrastructure projects and rising commercial activity expected to increase demand for power in the coming years.
Deputy Finance Minister Laurent Luswetula (pictured above) announced the ambition in Cotonou, Benin, where he led Tanzania’s delegation at the 35th meeting of the Governing Board of the African Capacity Building Foundation (ACBF), held alongside the Africa Think Tank Summit.
Representing Finance Minister Khamis Mussa Omar, Luswetula said the government viewed reliable and sufficient energy as a prerequisite for sustainable economic growth, industrial expansion and improved living standards.
“Tanzania is ready for an economic transformation because our goal and determination are to ensure that we have sufficient electricity and energy to support our people’s development, national development and economic growth,” he said.
The government’s ambitions are closely linked to Development Vision 2050, which seeks to transform Tanzania into a US$1 trillion economy, with average income per person reaching approximately US$7,000.
Achieving those objectives will require sustained investment in infrastructure, manufacturing and other productive sectors. Electricity availability will be critical to whether businesses can expand production, reduce operating constraints and compete more effectively in domestic and regional markets.
Power supply underpins investment
Luswetula said the government was continuing to strengthen electricity generation and distribution to meet both current demand and future requirements arising from new investments and expanding industrial activity.
The target of exceeding 8,000MW by 2030/31 is intended to provide the capacity needed to support this expansion.
The government expects increased electricity availability to support the establishment of more factories, raise industrial output and strengthen the implementation of strategic infrastructure projects.
Among these is the Standard Gauge Railway (SGR), which is being developed to improve connectivity between economic centres and support the movement of passengers and freight.
Planned extensions towards Mwanza, Kigoma and other parts of the country are expected to strengthen transport links and create opportunities for businesses along the network.
Reliable electricity will be important to the wider infrastructure system supporting such investments, including industrial facilities, logistics operations and commercial centres.
Rural electrification expands opportunities
Beyond large-scale generation, the government is also seeking to widen access to electricity in communities that remain inadequately served.
Luswetula said more than 9,000 additional hamlets were expected to receive electricity under the ongoing electrification phase.
Expanding access could create opportunities for small and medium-sized enterprises, particularly in rural areas where limited electricity supply can constrain commercial activity.
Reliable power can support agricultural processing, cold storage, irrigation, workshops and other businesses that add value to locally produced goods. It can also help enterprises extend operating hours and adopt more productive equipment.
Turning energy investment into economic growth
Luswetula said policies implemented under President Samia Suluhu Hassan’s administration were intended to create a more favourable environment for both existing businesses and new investors.
He stressed that the government’s energy strategy extended beyond increasing generation capacity to ensuring that electricity reached citizens and supported economic activity in different parts of the country.
The challenge ahead will be to ensure that additional generating capacity translates into tangible economic gains.
This will require continued investment in transmission and distribution networks, effective management of electricity infrastructure and a supply system capable of meeting demand as industrial activity expands.
It will also require businesses to respond to improved energy availability by investing in production, technology and skills.
An African energy challenge
Energy security was among the central issues discussed at the 35th meeting of the ACBF Governing Board, which examined challenges across the energy value chain, from generation and distribution to ensuring that citizens benefit from improved access.
Tanzania also held discussions with representatives from other African countries on the importance of achieving adequate energy supplies to support industrial development and broader economic transformation.
The issue extends beyond Tanzania. Across Africa, inadequate electricity supply and limited infrastructure have constrained industrial development and raised the cost of doing business in several markets. Expanding reliable electricity supplies is therefore central to efforts to strengthen manufacturing, increase the value added to locally produced resources and create more productive employment.
