Tanesco: A new, better electricity parastatal? (Part I)
The Tanzania Electric Supply Company (Tanesco) headquarters, Dar es Salaam. PHOTO | FILE
Tanesco is an anagram for the ‘TANzania Electric Supply Company.’ This is the power company which, for all practical purposes, ‘sees’ to the generation, transmission and distribution/supply of electric power in Tanzania.
Tanesco was formally established in 1964 by the newly-independent Government of the Tanganyika Republic to virtually replace the former Tanganyika Electric Supply Company and the Dar es Salaam Electric Supply Company (DARESCO).
The latter two were established in 1931by the British Government, to which Tanganyika Territory had been entrusted for administration and development (?) by the League of Nations. This was after the end of the First World War (1914-18), which Germany lost – and, consequently, lost its overseas territories, including ‘Tanganyika,’ known as ‘Deutsch Ost-Afrika’ at the time.
Reportedly, the German Administration had installed a power generator in Dar es Salaam in 1908 to supply electricity to the local railway station, as well as to special shops and dwellings of German officials in the metropolis. [See ‘Tanesco kielelezo cha hatua za mabadiliko ya wa-Tanzania;’ MWANANCHI: July 24, 2023].
Indeed, much has happened down the years regarding Tanesco’s activities and performance in general since the company was formally established nearly a century ago– some of it good/positive; some of it bad/negative.
But, while much of that was bad/negative most of the time, the Company seems to (at long last) seen the proverbial light at the end of the tunnel. There indeed are already signs of improvement in Tanesco, a parastatal that had been performing miserably for a long time: signs that a long and difficult period of its operations is almost finished.
This is more than evident in the recent development, namely the Special Leadership Forum titled ‘Jukwaa la Fikra’ (Mwananchi Thought Leadership Forum: MTLF). Held in Dar es Salaam on July31 this year (2023), the Forum was jointly organized by the Mwananchi Communications Limited (MCL) and Tanesco, with the Energy Minister, Mr. January Makamba, as Chief Guest.
Prominent Forum Participants included – but were by no means limited to – the Tanesco Managing Director, Mr. Maharage Chande, the MCL Managing Director, Mr. Bakari Machumu, the Founder & Managing Director of the Lindam Group (formerly known as Kazi Services Limited), Ms. Zuhura Muro, the Tanzania Renewable Energy Association (TAREA) Chairman, Mr. Prosper Magari, and the AngloGold-Ashanti Deputy President, Mr. Simon Shayo [For details, please see ‘MCL, Tanesco na Safari ya Kuliangaza Taifa,’ MWANANCHI: July31, 2023].
Arguably, the Forum was a resounding success. For one thing, it painted a clear picture of a NEW Tanesco which has finally become a profitable entity, registering a record Sh109.45bn profit during FY-2021/22 – mostly from increased electricity sales – compared to Sh77.14bn profit in FY2021/22. This was also partly after the government converted Tanesco’s debt of Sh2.4trn into Equity.
The New Tanesco is also seriously bent on increasing electricity production – doing so through self-financing and using environment-friendly power sources!
This is a major departure from the Tanesco of yore, which was innocently enough put at the centre of several fake and scandalous deals on electricity production in the country by foreign companies.
You don’t remember the scandals involving, say: the Tegeta Escrow; the so-called ‘Independent Power Tanzania Limited (IPTL); Pan-African Power Limited (PAP); Mechmar (Malaysia) Corporation, the ‘SingaSinga,’ et cetera, et cetera?
Well, these were… Sorry, I’ve run out of editorial space – till next time…
