Local production to push down cost of Luku meters

Dar es Salaam. Prices of prepaid electricity meters are expected to go down by up to 60 per cent after a new company announced the commencement of local production.

Currently, the meters, popularly known as Luku meters, cost up to Sh300,000 each, with many being imported from Singapore.

But a new company known as Baobab Energy System Tanzania (Best), was launched at the weekend promising to sell the meters at Sh120,000 each starting next month

Speaking during an official launch of the company during the weekend, the Minister for Energy, Dr Medard Kalemani, said the opening of the factory means that importation of the products will become a thing of the past during 2018/19 financial year.

“Starting May 1, you will start supplying Luku meters across the country and if we are satisfied with your services – in terms of cost and quality – we will ban importation of these products so you can have all the market,” he said.

Speaking earlier, the Best’s general manager, Mr Hashim Ibrahim said the company employs 100 people directly.

He said the number will go up in accordance with the demands. The company is also planning to equip local youths with technical skills in providing maintenance services to distributed meters.

“It is through these training programmes that we expect to employ more Tanzanians,” he said.

According to Dr Kalemani, demand for Luku meters in Tanzania currently stands at 450,000 units annually.

Luku Meters per year. Best has the capacity of producing over 500,000 meters each year.