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Power and Infrastructure Finance in Tanzania: A Plain Guide

In Tanzania, the state utility TANESCO generates, transmits, and sells most power and is the main buyer from independent producers, while EWURA regulates the sector. The Julius Nyerere Hydropower Project, with all nine turbines and 2,115 MW running since April 2025, has sharply raised supply, and new links to Kenya and Zambia aim to trade power across the region.

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How is the power sector in Tanzania set up?

Tanzania Electric Supply Company (TANESCO) is the state utility. The Energy and Water Utilities Regulatory Authority (EWURA) licenses producers and approves tariffs.

Natural gas from fields such as Songo Songo and Mnazi Bay fuels gas power stations near Dar es Salaam.

Key projects and programmes

These are public, well-documented examples from the sources below. They show how the market works.

  • Julius Nyerere Hydropower Project on the Rufiji River, with nine 235 MW turbines and 2,115 MW in total, fully running since April 2025.
  • Gas-fired power stations at Kinyerezi and Ubungo.
  • Transmission links to Kenya and the planned Tanzania–Zambia interconnector.

How are projects financed?

Large state projects have been funded by the government and loans from DFIs and export credit agencies. Private IPPs need a PPA with TANESCO, which has been a slow route in the past.

Mining and industrial users are a growing market for captive and direct power supply.

What should investors, lenders, and off-takers check?

Common checks include:

  • TANESCO's payment record and any government support.
  • Licences and tariff approval from EWURA.
  • Local content and local ownership rules.
  • Currency of payment and access to US dollars.

Where does Vektron Merchants fit?

This guide is public information about Tanzania. Vektron Merchants does not look for deals there. Vektron Merchants is a marketing agency for energy, commodities, infrastructure financing and industrial firms. We find buyers, offtakers, lenders and partners for companies in these four industries, and we secure meetings with the people who sign.

Frequently asked questions

What is the Julius Nyerere Hydropower Project?

A 2,115 MW hydro power station on the Rufiji River in Tanzania. All nine turbines were running by April 2025.

Who regulates electricity in Tanzania?

The Energy and Water Utilities Regulatory Authority (EWURA).

Sources

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General information, not investment, legal or tax advice. Facts are from the public sources listed and may change.