Tanzania and Zambian firm hold landmark talks on electricity sale deal
President Samia Suluhu Hassan of Tanzania and her Zambia counterpart, Hakainde Hichilema when they met and held discussions on sidelines of the African Union Summit in Abuja, Nigeria in February, 2023. Their discussions centered on trade facilitation and energy investment between Tanzania and Zambia. PHOTO/EMBASSY OF TANZANIA IN NIGERIA.
What you need to know:
- Tanesco's business development manager, Mr Magoti Mtani, said it was Tanesco's expectation that the success of this trade will increase and strengthen revenue to ensure efficient operations.
Dar es Salaam. The Tanzania Electric Supply Company (Tanesco) and a private Zambian firm are currently in talks that will see the East African country exporting electricity to Zambia and beyond.
People, privy to the negotiations, say the two parties will finally arrive at a premium rate, surpassing the cost that Tanesco currently incurs to import power from Ethiopia.
Pending administrative and regulatory approvals, the export volume is poised to yield a swift return on investment for the Julius Nyerere Hydroelectric Project, recouping its costs in just four years.
This monumental trade pact not only strengthens the historic ties between Tanzania and Zambia but also heralds an unprecedented private-sector breakthrough in the region. The power trading will be facilitated through Kanona Power Limited, a pioneering Zambian-Tanzanian consortium, underscoring the deal’s innovative approach to energy collaboration.
Tanesco confirmed the development in its statement released on Saturday, March 22, 2025, saying the talks were on the preliminary stage.
Tanesco's business development manager, Mr Magoti Mtani, said it was Tanesco's expectation that the success of this trade will increase and strengthen revenue to ensure efficient operations.
Currently, Tanzania produces 3,431 megawatts (MW) of power, with 58 percent generated from hydro, 35 percent from gas, and 7 percent from other renewable sources.
The target is to increase this capacity by 2,463 MW, tapping into solar, wind, geothermal, and other renewable sources by 2030.
"The corporation has held discussions with Kanona Electric Company of Zambia, with the aim of exploring how these companies can engage in electricity trade in the Southern region. This trade is also expected to expand to neighboring countries, and as Tanesco, we are looking forward to strengthening our financial capacity," he said.
He also expressed gratitude to the sixth-phase administration of President Samia Suluhu Hassan for implementing strategic development projects, especially in the electricity sector.
The government, he said, has been financing Tanesco's operations to ensure the timely completion of the strategic projects.
Meanwhile, the Head of the Business Department at Kanona Electric Company, Ms Nsofwa Sikanika, said that the meeting on the business cooperation discussions was a preliminary step toward finalizing the electricity trade agreement, which is expected to be signed soon.
The completion of this agreement will allow the trade to officially begin, strengthening access to electricity services and contributing to economic growth in African countries.
Tanzania is a member of the regional electricity markets of the Eastern Africa Power Pool (EAPP) and the Southern African Power Pool (SAPP), which will benefit Tanzania by allowing it to buy and sell electricity with other African countries.
