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Tanzania Invests TZS 10.78 Billion in Solar Power

Electricity generated by the facility helps power water-pumping equipment, supporting the operation of systems that deliver clean water to residents in Magu District.
October 15, 2026

Tanzania’s Rural Energy Agency (REA), in partnership with the World Bank, has supported the development of the Bugando Solar Power Project with TZS 10.78 billion, as the country intensifies efforts to expand renewable energy generation and strengthen electricity supply.

Located in Magu District, Mwanza Region, the 5-megawatt (MW) solar power project officially began supplying electricity to Tanzania’s national grid on September 23, 2026, marking a step forward in the country’s transition towards diversified energy sources.

The project harnesses solar energy to contribute to national electricity generation, complementing other sources such as hydropower and natural gas. Increasing the contribution of renewable energy is important for improving the resilience of the electricity system, particularly as demand grows across households, businesses and public institutions.

The investment also highlights the role of cooperation between the Tanzanian government and development partners, including the World Bank, in financing infrastructure that supports rural development and economic growth.

Also Read: TANESCO Promises Reliable Power for Mpanda

Beyond electricity generation, the Bugando project has also been associated with improvements in local water supply. Electricity generated by the facility helps power water-pumping equipment, supporting the operation of systems that deliver clean water to residents in Magu District.

Reliable electricity is essential for water services, healthcare facilities, schools, agricultural activities and small businesses. In rural communities, improved power availability can help reduce operating costs, support productive activities and create opportunities for investment.

Tanzania has continued to implement rural electrification programmes aimed at expanding access to electricity and improving energy infrastructure. Solar power offers additional opportunities, particularly in areas with strong sunlight, while helping diversify the country’s energy mix.

The commissioning of the Bugando Solar Power Project therefore represents an additional contribution to national electricity generation and demonstrates the potential for renewable energy investments to support essential services and local economic development.

As Tanzania’s demand for electricity continues to grow, projects of this nature are expected to play a role in strengthening energy security, supporting rural communities and advancing the country’s broader development objectives.

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