Private power transmission plan sparks optimism
Tanzania is planning to involve the private sector in electricity transmission and distribution through a Public-Private Partnership model. The initiative, supported by an agreement with Africa50, aims to mobilize private capital to improve power supply reliability and reduce the burden on the government budget.
Why it matters
This shift represents a significant move toward infrastructure privatization in developing economies, potentially serving as a model for addressing energy deficits in Africa.
DAR ES SALAAM: ECONOMISTS have welcomed the government’s plan to involve the private sector in electricity transmission and distribution, describing the move as crucial to improving power supply in line with the country’s growing electricity generation capacity.
They said the approach would mobilise private capital, ease pressure on the government budget, meet rising electricity demand and free up public resources for other development priorities.
The experts’ views follow the recent two-day Africa50 General Shareholders Meeting and Infra for Africa Forum in Dar es Salaam, where Tanzania signed several Memoranda of Understanding (MoUs), including an agreement aimed at integrating private investment into the expansion of electricity transmission infrastructure.
The Tanzania Electric Supply Company (TANESCO) signed an MoU with Africa50 to unlock private investment in the country’s electricity transmission network.
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