MWE Correspondent
Tanzania is standing at a turning point in its economic journey as new research reveals that renewable energy could become a powerful engine for growth if long-standing barriers are addressed.
Although the country is richly endowed with sunshine, strong wind corridors, vast rivers and geothermal reserves, clean energy currently contributes less than two per cent to national output. Experts say the slow progress is largely the result of limited financing options, weak infrastructure, and regulatory hurdles that have discouraged large-scale investment.
The study shows that with targeted reforms and better access to capital, the renewable sector could contribute between 1.5 per cent and 10 per cent of gross domestic product by 2034. Such growth would significantly strengthen the Tanzanian economy, while helping the country reduce its dependence on imported fuel.
Energy specialists argue that expanding the use of renewable energy would deliver benefits far beyond electricity generation. Reduced fuel imports could save hundreds of millions of dollars each year, easing pressure on foreign currency reserves and freeing up funds for social services and development projects. Cleaner air would also lower health costs linked to pollution-related illnesses.
The research further indicates that a stronger renewable framework could attract billions of dollars in private investment over the next decade. These funds would support solar farms, wind parks, hydropower upgrades and off-grid solutions for rural communities that still lack reliable electricity.
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One of the most promising outcomes highlighted is job creation. From technicians and engineers to project developers and local suppliers, the sector is expected to generate more than 150,000 new employment opportunities by 2034. Analysts believe this could play a major role in absorbing Tanzania’s growing youth workforce.
Currently, Tanzania spends a significant portion of its foreign exchange earnings importing oil and gas to meet rising energy demand. As global fuel prices continue to fluctuate, dependence on fossil fuels leaves the economy vulnerable to external shocks. Increasing domestic clean power production would offer greater stability and long-term savings.
However, experts caution that progress will depend on modernising the national power grid, simplifying investment procedures and expanding affordable financing options for both businesses and households. Without these reforms, the country risks missing out on a historic opportunity.
With climate change intensifying and energy demand climbing across East Africa, renewable power is increasingly seen not just as an environmental solution but as a strategic economic pillar. If supported by strong policies and consistent investment, Tanzania could transform its abundant natural resources into sustainable prosperity for decades to come
