The energy sector has become a major engine of Tanzania’s economy, contributing 14.4 percent to the country’s Gross Domestic Product (GDP), up from just 5.8 percent in 2015, Deputy Minister of Energy Judith Kapinga told Parliament in Dodoma today.
Speaking during the Budget session for the Ministry of Planning and Investment, Kapinga highlighted the impressive progress made between 2015 and 2025, attributing the sector’s success to substantial government investments and strong leadership under President Samia Suluhu Hassan.
“Energy is the heart of the economy,” said Kapinga. “Thanks to focused efforts and major projects, the sector’s contribution to the national income has more than doubled in just a decade.”
She pointed out significant milestones in the natural gas and oil subsectors, noting that Tanzania has produced over 25 billion cubic feet of gas each from the Mnazi Bay and Songosongo fields over the past four years.
Furthermore, the government recently signed agreements to develop the promising Ruvuma Ntorya gas field, which is in early production stages.
Through the Tanzania Petroleum Development Corporation (TPDC), the government has increased its share in the Mnazi Bay field from 20 to 40 percent, ensuring greater control over national resources.
Kapinga also emphasized the growing role of natural gas beyond power generation. Initiatives such as compressed natural gas (CNG) for vehicles and expanded gas networks in Dar es Salaam, Mtwara, and Lindi are helping other sectors reduce costs and emissions.
On oil, she noted the government’s effective management of fuel prices, which remain stable thanks to subsidies, and progress in strengthening the joint importation system to ensure steady supply.
Electricity generation capacity has surged from 1,600 megawatts in 2021 to about 4,000 megawatts today, driven largely by investments in key projects like the Julius Nyerere Hydropower Plant.
Power transmission infrastructure has expanded from roughly 6,000 kilometers to 8,000 kilometers, while distribution lines have grown from 144,000 to 200,000 kilometers, boosting access nationwide.
Kapinga also highlighted the government’s achievements in rural electrification. Over the past four years, electricity has reached every village in Tanzania, and efforts are now underway to connect smaller sub-villages (vitongoji).
“The progress we have made in the energy sector is transforming lives and powering Tanzania’s development,” Kapinga concluded.
This robust growth underscores the government’s commitment to sustainable energy development as a foundation for long-term economic prosperity.
