Vice-President Deogratius Ndejembi has directed Tanzania Electric Supply Company (TANESCO) and its partners to speed up implementation of the peri-urban electricity scheme. This initiative aims to ensure residents in areas with rural characteristics, but administratively located within municipalities or cities, are not disadvantaged by urban boundaries. Ndejembi made the remarks during the signing ceremony and launch of the LastMile Connection Financing Scheme between TANESCO and CRDB Bank in Dar es Salaam.
The Vice-President noted that some communities have lifestyles and settlement patterns similar to rural areas but are required to pay 320,000/- for electricity connections, instead of the 27,000/- charged to rural customers. He cited areas such as Kivule in Dar es Salaam, Sumbawanga, Kagera, Bagamoyo, and areas along the Dodoma-Chamwino municipal boundaries as examples. Ndejembi emphasized that the government's peri-urban approach seeks to ensure people living in these areas are not left behind due to their location within urban administrative boundaries.
The Vice-President directed TANESCO and CRDB to begin a five-district pilot programme immediately and establish a monitoring and evaluation mechanism to determine whether the initiative achieves its target of 100,000 new connections annually. He also directed TANESCO to work with private-sector players to develop a facility that would enable customers to borrow electricity tokens during emergencies and repay the amount later. This proposed facility would operate like mobile money overdraft services.
CRDB Group Chief Executive Officer and Managing Director Dr Abdulmajid Nsekela stated that the partnership, branded Imbeju Nuru, aims to ensure electricity reaching communities translates into wider economic opportunities for households and businesses. The initiative provides a 27,000/- grant to eligible rural customers to meet initial electricity connection costs, with no repayment required. For urban and peri-urban customers, CRDB will provide affordable loans to meet connection costs, starting at 320,000/-, with financing provided without collateral or an initial deposit at an interest rate of 10 per cent.
TANESCO Director-General Engineer Lazaro Twange said the utility has three major responsibilities: generating, transmitting, and distributing electricity. The country currently has a generation capacity of about 4,500 to 4,600 megawatts. Under Mission 300, TANESCO was directed to connect 8.3 million customers within five years, requiring an average of 1.7 million customers to be connected every year. Achieving this target requires sufficient electricity, transmission and distribution infrastructure, and the final connection bringing power into a customer's home.
Dr Nsekela also mentioned that CRDB will allocate 1bn/- annually for public education and outreach in partnership with TANESCO, using its digital platforms, nationwide network, and CRDB Bank Foundation to reach communities. TANESCO will work with district authorities to identify eligible beneficiaries under the pilot programme and ensure assistance reaches customers with genuine need. The partnership is expected to accelerate the process of connecting citizens to electricity.
The LastMile Connection Financing Scheme between TANESCO and CRDB Bank aims to bridge the gap between electricity generation and its impact on communities. With the Vice-President's directive, the initiative is expected to make a significant impact on the lives of Tanzanians, especially those in peri-urban areas. The programme's success will be monitored and evaluated to ensure it achieves its target of 100,000 new connections annually.
Key points
- The Tanzanian government has launched the LastMile Connection Financing Scheme to accelerate peri-urban electricity connections.
- The initiative aims to connect 100,000 new customers annually, with a focus on peri-urban areas.
- CRDB Bank will provide affordable loans to meet connection costs for urban and peri-urban customers.
