Dar Declaration: The future of Tanzania, Africa’s economy

This is substantiated by the 2023 report from the African Development Bank (AfDB), which highlights that access to reliable energy has increased production in agricultural and construction industries by more than five percent in West African countries, including Ghana and Ivory Coast.

Also read: Africa in ambitious five-year plan to power 300 million people

Given this reality, the heads of state from 21 African countries convened in Dar es Salaam on January 27 and 28, 2023, to discuss electricity and energy, and agreed on several key issues, which stakeholders believe present a significant opportunity for economic growth.

In their joint declaration, the heads of state affirmed that energy is a vital tool for eradicating poverty and stimulating industrial growth, hence emphasised the need to improve production, transportation, and distribution infrastructure.

Another issue addressed in the Dar es Salaam Declaration was the creation of financial equity to strengthen systems and plans aimed at reducing energy costs.

They also agreed to allocate domestic budgets and combine them with international financial aid to implement plans to enhance energy access.

The conference, initiated by the World Bank and AfDB, sought to explore Africa’s energy future and set a target to provide energy services to 300 million people by 2030, out of the 600 million currently without electricity on the continent.

The Human and Environmental Development Organisation (Hudefo) Executive Director, Ms Sarah Pima, remarked that what defines a developed country is the availability of reliable and affordable energy for its citizens.

She explained that, since the Dar es Salaam Declaration aims to improve energy distribution across Africa, the continent’s economies will be unlocked.

This unlocking, as she highlights, is driven by the fact that access to energy spurs greater development activities and encourages industrial investment.

“If economic activities increase and investors focus on constructing industries, Tanzania and Africa as a whole will strengthen their economies and those of individual citizens,” she said.

She further emphasised the need for solid plans to be in place, underpinned by the cooperation and inclusivity of all stakeholders, including the private sector, women, youth, and civil society organisations, all of which were highlighted in the declaration.

Ms Pima emphasised the need for strong financial mechanisms to implement the declaration, advocating for action rather than further discussion.

“It’s time for action. If Africa pursues these efforts collectively, the goals will be achievable, as President Samia Suluhu Hassan has repeatedly stressed,” she added.

Head of International Branches at Standard Chartered Bank, Mr Lewis Mlay, stated that the declaration would stimulate job creation and, ultimately, increase national income.

“Access to sufficient energy will boost economic activities, which will reduce, or even eradicate, poverty for Tanzanians and Africans in general,” he said.

Mr Mlay connected the implementation of the declaration to Tanzania’s goal of promoting clean cooking energy.

“I believe the target of having 80 percent of Tanzanians using clean energy is achievable if reliable energy is available, as agreed by the heads of state,” he explained.

Former cabinet minister, Prof Mark Mwandosya noted that the key to rapid economic growth for any country in Africa and worldwide lies in industrial investment.

He remarked that it is difficult to convince investors to establish factories in countries lacking reliable energy, as this leads to high production costs.

As the Dar es Salaam Declaration seeks to guarantee energy access across Africa, Prof Mwandosya believes it will draw international investors to the continent, driving economic growth.

Being the Energy and Water Utilities Regulatory Authority (Ewura) chairman, he added that industries create jobs and generate income for countries.

“Industries generate income through taxes, provide employment, and sometimes buy raw materials, as in agricultural industries where products will find a market. This creates a thriving economy,” he explained.

He added that, if the resolutions are properly managed and executed, Africa could become a model continent, achieving its long-term goal of self-reliance.

Renewable energy engineer and consultant, Mr Matthew Matimbwi, argued that the declaration opens doors for the development of renewable energy and provides countries with the opportunity to adopt alternative energy technologies.

He criticised the government's long-standing reliance on hydropower, pointing out that it has left countries like Zambia in darkness due to water shortages caused by drought.

Also read: Mission 300 Summit calls for urgent action to close Africa’s energy gap

“The Zambezi River has dried up, leaving Zambia without electricity. What guarantee do we have that the Julius Nyerere Dam will always have enough water?” he asked.

Mr Matimbwi, also the Tanzania Renewable Energy Stakeholders Association (Tarea) executive secretary, believes Zambia’s energy crisis serves as a wake-up call to Tanzania regarding its energy security.

He pointed out that the declaration offers the opportunity for countries to sign energy production agreements using renewable technologies such as geothermal, solar, wind, and biomass.

“Tarea has been advocating for these solutions, but there has been hesitation in implementation. Now, this declaration will encourage action,” he added.

Mr Matimbwi also highlighted the potential for environmentally sustainable energy production, noting that many citizens, due to financial constraints, are unable to afford cooking energy that requires daily purchases.

He recalled the distribution of gas cylinders for free, which many stopped using once the gas ran out.

What’s needed, he said, is technology that reduces the negative environmental impacts of the energy sources citizens rely on.

He stressed that renewable energy is safe, reliable, and affordable, which would foster economic development as even citizens would not face high energy costs.

Read: Tanzania seeks $13 billion for energy transformation

The role of the private sector

The World Bank’s International Finance Corporation (IFC) executive director, Makhtar Diop, called on African countries to move away from viewing electricity as solely a government-managed sector, urging them to involve the private sector in energy distribution and generation.

“We must involve the private sector in funding electricity distribution and generation, change traditional systems, and allow alternative funding sources such as pension and social security funds to finance electricity projects,” he said.

He added that, aside from inviting private investment in electricity generation, the focus must now be on how to ensure that electricity reaches citizens, given that many companies cannot manage distribution effectively.

“In Africa, there is significant investment in generation, but the integration between generation and distribution is lacking. We need companies that will focus exclusively on electricity distribution,” he said.

 TotalEnergies Chairman and CEO, Mr Patrick Pouyanné, also stressed the need for African countries to invest in energy distribution systems, pointing out that once renewable energy generation is in place, the electricity must be integrated into the grid.

“Establishing a company to transport and distribute electricity is challenging due to the substantial capital required,” he noted.

He explained that the absence of robust electricity distribution systems makes attracting international and private investment in enera