Investing in the Tanzania electricity sector: 10 Things to Know

Tanzania has approximately 1,700MW of installed generating capacity and less than 25 per cent of the population have access to electricity. Tanzania’s power sector suffers heavily from inefficiencies (across installed generating capacity, transmission and distribution) and The World Economic Forum’s Global Competitiveness Report 2015/6 ranked Tanzania as 122 out of 140 countries for reliability of electricity supply – above Burundi but otherwise below neighbours Kenya, Rwanda and Uganda. It is well recognised that the state of Tanzania’s power sector is adversely affecting GDP. Indeed the OECD in its recent Investment Policy Review cited energy in Tanzania as a “critical bottleneck” and highlighted that the problem of reliable energy was the top barrier to doing business in Tanzania