Investing in Tanzania's energy

Investing in Tanzania's energy

Investing in Tanzania's energy sector presents substantial opportunities, especially with the government's goal to increase the country's power generation capacity. Tanzania is working towards diversifying its energy mix by enhancing its renewable energy resources, such as solar, wind, and geothermal, alongside the expansion of hydroelectric power.

  1. Key Areas for Investment:
    • Hydropower: With large projects like the Julius Nyerere Hydropower Plant (2,115 MW) and smaller ones like Malagarasi (49.5 MW), Tanzania is expanding its hydropower capacity. Investors can participate in ongoing or upcoming projects​
    • Renewable Energy: Tanzania has significant potential for geothermal (up to 5,000 MW), solar (1,000 MW), and wind (3,000 MW). The government encourages investments in renewable energy, with the sector expected to contribute 20% to the.
    • Natural Gas: Natural gas is already a major part of Tanzania's energy supply, with increasing demand. The government seeks investments in infrastructure, including oil pipelines and gas storage​
  2. Regulations and Incentives:
    • The energy sector in Tanzania is regulated by the Energy and Water Utilities Regulatory Authority (EWURA) and TANESCO (Tanzania Electricity Supply Corporation).
    • Investors may benefit from incentives under the Tanzania Investment Centre (TIC), such as tax breaks, investment guarantees, and expedited business licensing procedures.
    • The government has created favorable policies to attract investments in energy infrastructure​
  3. Getting Started:
    • Contact TIC for application procedures and investment facilitation. Registration can be done online through the Tanzania Investment Centre portal.
    • For energy-specific projects, liaise with EWURA to understand sector regulations and compliance requirements.

By investing in the Tanzanian energy sector, particularly renewables, you can tap into a growing market while supporting the country’s push for sustainable energy solutions.

For further guidance, you can reach out directly to the Tanzania Investment Centre or consult with local energy firms and regulatory bodies

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