Tanzania Electric Supply Company (TANESCO) has initiated preliminary discussions with Zambia’s KANONA Power Company to establish a power trade agreement.
The talks, which took place recently in Dar es Salaam, focused on legal frameworks and potential collaboration in electricity sales between the two companies.
Speaking during the meeting, TANESCO’s Business Development Manager, Mr. Magoti Mtani, emphasized the significance of the discussions in strengthening the company’s financial position.
“TANESCO has engaged in discussions with KANONA Power Company to explore business opportunities for electricity trade in the Southern Corridor. This initiative is not only expected to enhance revenue generation but also expand our financial capacity, allowing us to operate more efficiently,” he stated.
Mr. Mtani further acknowledged the Tanzanian government’s commitment to the energy sector, particularly through its strategic development projects.
“We appreciate the Sixth Phase Government for its unwavering support in ensuring the successful implementation of key electricity projects. Their financial backing has been instrumental in driving Tanzania’s energy sector forward,” he added.
On her part, KANONA Power Company’s Head of Business Unit, Ms. Nsofwa Sikanika, described the meeting as a crucial step toward finalizing the electricity trade agreement.
“This discussion marks the beginning of what we hope will be a strong and beneficial partnership. Once the agreement is signed, it will pave the way for official electricity trade, ultimately improving power supply reliability and contributing to economic growth in both countries,” she noted.
Tanzania is a member of both the Eastern Africa Power Pool (EAPP) and the Southern African Power Pool (SAPP), regional electricity markets that facilitate cross-border trade.
This membership provides Tanzania with an opportunity to buy and sell electricity with other African nations, reinforcing its role in the continent’s energy sector.