WASHINGTON DC — The government of Tanzania has officially opened the doors to a massive $12.9 billion investment portfolio within its energy sector, signalling a strategic pivot toward private-sector-led industrialisation and regional energy leadership. Speaking at the Powering Africa Summit in Washington, DC, Deputy Minister for Energy, Ms Salome Makamba, presented a comprehensive roadmap designed to overhaul the nation’s power infrastructure and capitalise on its vast natural resource wealth. The initiative, which translates to approximately 33.23 trillion Tanzanian shillings, seeks to bridge the energy gap through a combination of traditional gas exploration and a rapid expansion of renewable and distribution networks.
The investment blueprint is divided into several high-priority subsectors, with power generation taking centre stage. Ms Makamba detailed a five-year plan involving 13 distinct projects that require $2.77 billion in capital. These ventures are engineered to inject an additional 1,421 megawatts into the national grid, providing the necessary baseload for Tanzania’s growing industrial footprint. Complementing this generation surge is a $1.21 billion allocation for electricity transmission, which will see the construction of 1,350 kilometres of new high-voltage lines and the upgrading of substations to ensure grid stability and rural connectivity.
Tanzania’s natural gas reserves, currently estimated at over 57 trillion cubic feet, remain a cornerstone of the nation’s economic strategy. The Deputy Minister emphasised that these reserves are significantly underutilised, offering a lucrative entry point for international firms specialising in exploration, processing, and downstream industrial applications. While the government focuses on large-scale power generation, it is simultaneously championing a domestic transition to clean cooking energy. With a target of 75 per cent adoption by 2030, the state is seeking partners to distribute improved cookstoves and gas technologies to replace traditional biomass, a move expected to create a robust secondary market for gas retailers.
To ensure the sustainability of these ambitions, the Tanzania Petroleum Development Corporation (TPDC) is already moving forward with multi-billion-shilling upstream projects. TPDC Director General Mussa Mohamed Makame recently confirmed the commencement of a 235 billion shilling drilling campaign at Mnazi Bay in the Mtwara Region. This operation includes the drilling of two wells to boost current output and a third exploratory well, Kasa-1, which experts believe could unlock an entirely new gas field. These state-led efforts are intended to provide the foundational security required to attract the $12.9 billion in foreign direct investment the country is now soliciting.
As the summit concluded, the Tanzanian delegation including Ambassador Else Sia Kanza and leaders from TANESCO and the Rural Energy Agency reassured the international community of the nation’s commitment to fiscal and regulatory stability. Ms Makamba stressed that the legal environment is being actively refined to be more ‘investor-friendly’, with the aim of lowering barriers to entry for US and East African Community partners.
“The government is seeking strategic partners to invest across various areas, including power generation, transmission, distribution, and clean cooking energy, as we continue to improve the business environment and implement investor-friendly policies,” stated Ms Salome Makamba.
