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Tanzania’s Energy Surge Powers Industrial Ambitions

The vision outlines a roadmap for transforming Tanzania into a middle-income, energy-secure nation by 2050, with a focus on sustainable energy solutions and infrastructure development.
October 7, 2025

Tanzania is positioning itself as East Africa’s emerging industrial powerhouse, leveraging its expanding energy capacity to drive economic transformation.

The Tanzanian government is ambitiously increasing its electricity generation capacity, aiming to expand from approximately 1,602 MW to 10,000 MW by 2025. This expansion includes significant projects such as the Julius Nyerere Hydropower Plant, which alone will contribute 2,115 MW to the national grid. The surge in energy capacity is expected to alleviate power shortages and provide a stable foundation for industrial activities.

Natural gas plays a pivotal role in Tanzania’s energy strategy, with the country possessing over 57 trillion cubic feet of proven reserves. The government is negotiating a $42 billion liquefied natural gas (LNG) project with international partners, aiming to unlock these reserves and enhance energy security.

Central to Tanzania’s industrial aspirations is Vision 2050, a comprehensive development plan emphasizing energy as the cornerstone of industrialization. The vision outlines a roadmap for transforming Tanzania into a middle-income, energy-secure nation by 2050, with a focus on sustainable energy solutions and infrastructure development.

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The Integrated Industrial Development Strategy (IIDS) 2025 complements this vision by identifying key sectors such as cement, steel, glass, and textiles, which are energy-intensive and poised for growth with the anticipated energy surplus.

Tanzania’s energy strategy extends beyond national borders, with plans to interconnect its power grid with neighboring countries like Kenya, Rwanda, and Zambia. This regional integration aims to enhance energy security and position Tanzania as a reliable energy exporter in East Africa.

Despite these advancements, challenges remain, including the need for substantial investment in energy infrastructure and the development of a skilled workforce to support industrial growth. However, the government’s commitment to energy development and industrialization provides a strong foundation for overcoming these obstacles.

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