The Parliament of Tanzania has approved a TZS 2.53 trillion budget for the Ministry of Energy for the 2026/2027 financial year, aimed at improving electricity access and strengthening national energy systems.
Out of the total budget, TZS 2.46 trillion has been allocated for development projects, while TZS 63 billion is for recurrent expenditure. The focus is on expanding electricity generation, transmission, and distribution across the country.
The Minister for Energy, Deogratius Ndejembi, said the government is committed to ensuring reliable and affordable electricity for all citizens. He said Tanzania is targeting 8,000 megawatts by 2030 and 70,000 megawatts by 2050.
He said the country will use different energy sources including hydropower projects such as Malagarasi, Kakono, Ruhudji, and Rumakali, as well as solar, wind, geothermal, and coal energy.
The government also plans to develop coal power projects expected to generate over 2,000 megawatts in partnership with the private sector.
On electricity access, the government will expand connections in both rural and urban areas. Special attention will be given to areas within towns that still have rural characteristics, where citizens will now be connected to electricity at a subsidised cost of TZS 27,000.
The Minister also directed TANESCO and REA to ensure schools, health centres, and public institutions in electrified villages are connected to electricity to improve services.
On fuel supply, he said Tanzania has enough reserves and no shortages despite global challenges. The government is also building a fuel storage facility in Kigamboni and a pipeline from Dar es Salaam to Ndola in Zambia to improve distribution.
In the natural gas sector, TPDC is continuing projects including pipelines, drilling in Mnazi Bay, and exploration in Eyasi Wembere. The LNG project in Lindi is also in its final stages, with key agreements already completed.
The government has assured citizens that all energy projects aim to improve access, reduce costs, and support national development.
