Tanzania proposes $967 million for energy sector expansion in 2026/2027
via Punch Nigeria2 min read
Tanzania's Energy Minister, Deograius Ndejembi, announced a proposed budget of $967.3 million for the energy sector in the 2026/2027 financial year, with $943.2 million allocated for development projects and $24.1 million for recurrent expenditure. The funding, sourced from both domestic $613.8 million and external $329.4 million sources, aims to expand energy infrastructure, support industrial growth, and improve service delivery. The minister reported an increase in installed electricity generation capacity to 4,522.54 megawatts in March 2026, up from 4,031.71 megawatts a year prior, with peak demand reaching 2,199.06 megawatts. Transmission lines expanded to 8,500.38 kilometers and distribution lines to 240,229.56 kilometers. Electricity access climbed to 85.5%, with 52.1% of Tanzanians connected to power. The government targets 8.3 million new customer connections by 2030, aiming for 75% connectivity. Ongoing projects include the 2,115MW Julius Nyerere Hydropower Project and other solar and hydro schemes. Transmission projects like the 400kV Chalinze–Dodoma line are also underway. Rural electrification efforts aim to connect all 64,359 hamlets on the mainland by 2030. The country is also expanding its compressed natural gas infrastructure, increasing CNG stations from nine to 18, and developing its gas sector, with output from Songo Songo and Mnazi Bay reaching 41,530.94 million cubic feet. Additionally, Tanzania has secured petroleum supplies and is expanding strategic s
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