Government wants diverse approach to achieve clean energy goals

Dar es Salaam. The government has called on stakeholders to adopt diverse strategies to facilitate the shift to clean cooking as Tanzania targets to ensure 80 percent of citizens use clean energy by 2034.

Speaking at a policy dialogue on clean cooking yesterday, Dr Remidius Ruhinduka from the Ministry of Finance's policy department underscored the importance of raising awareness, particularly in rural areas.

The forum was organised by the United Nations Capital Development Fund (UNCDF) through the CookFund initiative funded by the European Union (EU).

Dr Ruhinduka stressed that while awareness about clean energy is crucial, it is equally important to ensure the availability and affordability of these energy sources.

“Our regulations and policies are vital in this journey. We need to employ multiple approaches to tackle the issue effectively, rather than relying on a single method,” he said.

He also highlighted the government's commitment to expanding electricity access in rural areas. This year, approximately Sh1.6 trillion have been allocated to cover not only the remaining 30 percent of villages but also to extend connectivity to smaller hamlets within these areas.

The Ministry of Finance is working on tax reforms to support the clean cooking agenda. Dr Ruhinduka noted that progress has been made by removing the Value Added Tax (VAT) on imported Liquefied Petroleum Gas (LPG) and related raw materials.

However, challenges remain in distinguishing between ethanol used for fuel and that used for alcohol, complicating tax reforms.

“The Ministry plans to address these challenges through upcoming tax dialogues later this year, where stakeholders will have the chance to propose additional tax reforms,” he added.

The head of climate change, foreign commonwealth, and development at the British High Commission, Ms Catherine Pye, emphasized the importance of a diverse selection of fuels and reducing the upfront costs of electric cooking appliances.

“We are advocating for the removal of VAT and import taxes on electric appliances to make them more affordable,” Ms Pye said.

For his part, associate investment officer at UNCDF, Kevin Shikonyi, highlighted the need to support market adoption by improving affordability. He pointed out that UNCDF's result-based financing window provides incentives for enterprises to offer clean cooking solutions.

“We face significant challenges with tax compliance and high end-user prices, which hinder the adoption of clean cooking solutions. Development in this area is essential,” he noted.

A customer relations officer at Tanesco, Mr Samuel Mandari, observed that while electricity access has increased, actual usage for cooking remains low.

He suggested introducing incentives for financing electric cooking appliances and disincentives for traditional, dirty cooking methods.

 “Even with reduced appliance costs, if dirty cooking remains cheaper and more accessible, there will be limited motivation to switch,” he argued.

Similarly, Sylvester Mwambije from Envotec Services Ltd emphasized the importance of addressing the end-user perspective in the clean cooking transition.

 “We often focus on the energy and technology aspects but neglect the end users. They need education to understand these solutions properly,” he said.

Mr Mwambije urged stakeholders to focus on understanding and addressing the needs and challenges faced by consumers in adopting clean cooking solutions.

“All they need is to be aware so they can make an informed decision to choose clean energy over dirty energy,” he added.

Echoing these sentiments, Max Peddretti, an energy officer from the European Union (EU), noted that while the initial cost of clean energy technology can be high, its use is simpler compared to charcoal for daily cooking.

He emphasized the need for greater awareness to facilitate the switch to clean cooking energy.

“People need to understand the benefits of using clean energy to protect the environment and reduce their personal living costs,” Peddretti said.