Description

Tanzania has a developing electricity industry whose growth is mainly driven by an increase in electricity demand. Tanzania is also keen on diversifying its economy and developing energy intensive industries such as mining and manufacturing. GDP and per capita earnings growth will also lead to significant increases in electricity demand and attract investment into electricity generation, transmission and distribution. The state owned power utility TANESCO is also advancing a tariff system that reflects the costs of supplying electricity rather relying on off-balance sheet financing and governemt grants for survial. The outcome of future tariff reviews will have a significant bearing on the development of the industry.