Tanzania assures manufacturers of reliable electricity

Dar es Salaam. The government on Thursday assured manufacturers of reliable electricity to support local industrial production.

Deputy Prime Minister and Energy minister Doto Biteko said Tanzania has now sufficient electricity after recent addition of power from the Julius Nyerere Hydropower Project.

Dr Biteko made the statement during the opening of the second edition of the Tanzania International Manufacturers Expo (TIMEXPO) 2024, which began on Thursday at the Dar es Salaam International Trade Fair (DITF) grounds.

He mentioned that despite minor power issues experienced in recent months, which led to load shedding, hydroelectric power generation has now increased significantly, reducing reliance on gas for electricity production.

According to him, the government continues to improve and develop infrastructure to ensure electricity reaches different parts of the country.

“Power sources are currently generating enough electricity to meet domestic demand and we can also export if required,” Dr Biteko said, adding that some parts of the Kigoma and Kagera regions would soon begin receiving electricity from the national grid.

“This is part of President Samia Suluhu Hassan’s efforts to develop the country, especially the manufacturing industry, where electricity is a key factor,” he said.

According to the Ministry of Energy’s budget speech, electricity generation had reached 2,138 megawatts by March 2024 as efforts were underway to connect some 235 megawatts from the Julius Nyerere Hydropower plant to the national grid.

Dr Biteko said that the investment environment for both domestic and foreign investors is now favourable, attracting more investors.

“There were several institutions that previously had many investment barriers. I won’t mention them, but most have now become enablers rather than obstacles,” Dr Biteko noted.

The exhibitions organised by the Confederation of Tanzania Industries (CTI), in collaboration with the Tanzania Trade Development Authority (TanTrade), will open doors for local manufacturers and foreign investors, to showcase their products.

“I call upon industrialists to produce goods that can compete in both domestic and international markets. That will boost our economy and supporting the growth of relevant industries,” Dr Biteko added.

In his remarks, CTI chairman Paul Makanza highlighted the positive strides Tanzania has made in industrialisation.

He mentioned that the contribution of the industrial sector (overall) to the Gross National Product (GNP) has increased from an average of 23 percent in 2004 to 30 percent between 2020 and 2022.

He also noted that the growth of the sector has risen from an average of 9.4 percent from 2000-2004 to 11.8 percent between 2020 and 2022.

“The manufacturing sub-sector growth rate has also increased from an average of 8.1 percent in 2000-2004 to 11.1 percent in 2020-2022.

However, its contribution to the national income has decreased from an average of 10.1 percent in 2000-2004 to 7.8 percent in 2020-2022, Mr Makanza said.

According to him, export sales from the manufacturing sector have grown from $43.1 million in 2000 to $1.32 billion (accounting for 18.6 percent of total exports).

Mr Makanza acknowledged that the manufacturing sector still faces various challenges, including its low contribution to the national income (7.8 percent) compared to the target of 12 percent by 2025. Another challenge is the limited export of processed goods.

“This shows our dependence on raw materials although there is a huge opportunity to increase product processing to add value and enhance Tanzania’s competitiveness regionally and internationally,” he said.

He said that they will use the exhibitions to discuss various aspects of the growth and productivity of Tanzania’s industries.

“This is an important platform to showcase our products and services. It provides an opportunity for manufacturers to display their innovation, build networks with clients and traders, and learn from others.”