Joseph Isangura
Tanzania has announced it is seeking a total of $12.9 billion in financing to expand affordable and sustainable energy access to more than 42 million citizens by the year 2030.
The declaration was made during the high-level 27th Africa Energy Forum held in Cape Town, South Africa, where the Tanzanian government launched its National Energy Compact Implementation Plan.
The plan is aligned with the African Union’s ambitious Mission 300 Initiative, which aims to provide 300 million people across the continent with access to modern energy by 2030.
Delivering the country’s presentation, Felchesmi Mramba, the Permanent Secretary in the Ministry of Energy, explained that the $12.9 billion goal comprises $8.85 billion in public investment and an additional $4.04 billion to be mobilized from private sector partners.
The funds are earmarked for projects across various sub-sectors, including:
- Electricity generation and expansion
- Transmission and distribution infrastructure
- Rehabilitation of aging assets
- Last-mile rural connections
- Off-grid electrification using solar and mini-grid systems
- Clean cooking technologies
- Capacity building and workforce development
“We are projecting a high growth in electricity demand — between 10 to 18 percent annually,” said Mr. Mramba, emphasizing the country’s rapidly rising energy needs in the face of industrial expansion and urbanization.
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Over the past year, Tanzania has made remarkable progress. According to the Ministry of Energy’s 2025 budget report, the country’s national grid-connected generation capacity rose to 4,031.71 megawatts (MW) in April 2025, up from 2,138 MW in March 2024 — an increase of 86.6% within just 12 months.
Here’s the current generation mix:
- Hydropower: 2,716.27 MW (67.4%)
- Natural Gas: 1,198.82 MW (29.7%)
- Oil: 101.12 MW (2.5%)
- Solar Energy: 5 MW (0.1%)
- Biomass: 10.5 MW (0.3%)
These figures reflect the government’s push toward renewable sources while still leveraging natural gas reserves — a cornerstone of Tanzania’s energy strategy.
Strategic Vision for Sustainable Growth
Tanzania’s long-term energy vision is deeply embedded in its national development goals under Vision 2025. Access to reliable and clean energy is seen as a driver of industrial growth, job creation, education, and improved healthcare.
This funding effort also aligns with global agendas such as the United Nations Sustainable Development Goal 7 — Affordable and Clean Energy — which calls for universal energy access by 2030.
The African Development Bank and other regional players have already expressed support for similar energy access initiatives, signaling hope that Tanzania may secure part of the financing from both multilateral donors and climate finance mechanisms.
