Over the next time period of about two decades Tanzania will be in need of $46.2 billion investment to revamp the country’s energy infrastructure to comply with the growing demand for electricity.
For long investors to Tanzania have complained about lack of reliable power to go ahead with businesses.
The energy ministry released a master plan on Monday and said about three-fourth of the investing would be financed by debt and remaining by the government.
The required finance is about $46.2 billion for capital cost that includes investment on generation, transmission and sub-stations.
The ministry added, “The cost includes investment on generation, transmission and sub-stations. Generation accounts for almost 80 percent of the total investment cost.”
The country added in more than a decade power generation capacity would be boosted to 10,000 megawatts from the current 1,500 megawatts.
The ministry added vast natural gas and coal reserves will be used to end the energy shortages. This will also boost up the industrial growth.
Last month the country said to be seeking load of $200 million from the World Bank to support state power supplier TANESCO (Tanzania Electric Supply Company) but President John Magufuli refused the plan to avoid raising of electricity prices to cover costs.
The president is seeking to provide cheap electricity to drive industrialization.
TANESCO is currently debt-ridden which is about $363 million. By the end of 2015 its debts were $250.
Currently just 40 percent of the total population of Tanzania has access to electricity. The government is seeking to boost electricity to 90 percent of population by 2035.