Tanzania's Vice President, Deogratius Ndejembi, recently witnessed the signing and launch of a landmark financing scheme aimed at expanding electricity access to more Tanzanians. The partnership between Tanzania Electric Supply Company (TANESCO) and CRDB Bank was launched on October 2, 2026, at the Julius Nyerere International Convention Centre in Dar es Salaam. This initiative marks a significant step towards strengthening public-private sector cooperation in promoting development. The scheme aims to remove financial barriers preventing citizens from accessing electricity, a fundamental pillar and key driver of national economic growth.
Vice President Ndejembi emphasized that electricity is a service closely linked to development, stressing that the 2,115 megawatts generated by the Julius Nyerere Hydropower Project will only have meaning if they reach the final consumer in hospitals, factories, homes, and businesses. The partnership will enable more Tanzanians to access electricity, which is essential for economic growth and development. By increasing electricity access, the government aims to promote economic development, improve living standards, and enhance the overall quality of life for Tanzanians.
Under the scheme, CRDB Bank will cover the 27,000/- electricity connection fee for 500,000 customers in rural and peri-urban areas each year. Additionally, customers in urban areas will have access to a special arrangement allowing them to pay the connection costs in instalments through TANESCO. This initiative is expected to increase electricity connections in rural and peri-urban areas, where access to electricity is often limited. By making electricity more accessible, the government aims to bridge the gap in electricity access between urban and rural areas.
According to Vice President Ndejembi, Tanzania currently leads Africa in electricity connections, with the number of connected customers reaching nine million. He also noted that all 12,318 villages in the country had been connected to electricity, compared with only 506 villages in 2007. Furthermore, 33,657 out of 64,359 hamlets have already been connected, while the remaining 30,702 are expected to be connected before 2030. These statistics demonstrate the significant progress made by the government in increasing electricity access across the country.
The government has invested heavily in electricity infrastructure, particularly in Dar es Salaam. Vice President Ndejembi stated that over 231bn/- had been invested in electricity infrastructure in Dar es Salaam alone. The investment includes the construction of the Dege power receiving and substation facility in Kigamboni District and the modern Mabibo substation project, which receives electricity from Kinyerezi. These investments aim to enhance the reliability and efficiency of the electricity supply in Dar es Salaam and other parts of the country.
The measures are part of efforts to achieve the objectives of Tanzania's National Development Vision 2050 and implement the CCM Election Manifesto. The government's goal is to increase electricity generation capacity to 8,000 megawatts by 2030 and 74,000 megawatts by 2050. To achieve these objectives, the government is working to strengthen public-private sector cooperation and invest in electricity infrastructure. By increasing electricity generation and access, the government aims to drive economic growth, improve living standards, and enhance the overall quality of life for Tanzanians.
The partnership between TANESCO and CRDB Bank is a significant step towards achieving the government's objectives. By working together, the public and private sectors can leverage their resources and expertise to increase electricity access and promote economic development. The launch of this financing scheme demonstrates the government's commitment to increasing electricity access and promoting economic growth in Tanzania. Key initiatives include increasing electricity connections, investing in electricity infrastructure, and promoting public-private sector cooperation.
Key points
- The partnership between TANESCO and CRDB Bank aims to increase electricity access for 500,000 customers in rural and peri-urban areas each year.
- Tanzania currently leads Africa in electricity connections, with nine million connected customers.
- The government aims to increase electricity generation capacity to 8,000 megawatts by 2030 and 74,000 megawatts by 2050.
