Tanzania could strengthen its position as a regional electricity trading hub as Southern African countries deepen cooperation on cross-border power trade and seek to improve energy security.
The opportunity is emerging from the 67th Southern African Power Pool (SAPP) meetings taking place in Zanzibar, bringing together representatives from 18 member countries to deliberate on electricity trading, grid operations, transmission infrastructure and regional energy security.
The meetings, which run from September 7 to 11, come as Tanzania seeks to leverage increased electricity generation capacity and investments in transmission infrastructure to participate more actively in the regional power market.
Speaking during the opening of the meeting at the Golden Tulip Hotel in Zanzibar on Tuesday, Zanzibar Electricity Corporation (ZECO) General Manager Haji Mohamed Haji said stronger interconnection of national grids would facilitate cross-border electricity trade.
He said the arrangement would allow countries with surplus power to sell to those facing shortages, improving the utilisation of energy resources across the region.
“By connecting national grids and enabling cross-border electricity trade, SADC countries will be able to reduce power shortages, strengthen grid stability and increase access to reliable electricity for citizens,” Mr Haji said.
For Tanzania, the discussions come against the backdrop of increased investment in electricity generation and transmission, including the 2,115-megawatt Julius Nyerere Hydropower Project (JNHPP).
The expansion of generation capacity, coupled with improvements to the national transmission network and interconnections with neighbouring countries, could give Tanzania greater scope to participate in regional electricity trading.
Surplus electricity sold through the regional market could provide an additional source of revenue while creating opportunities for investment in generation, transmission and related energy infrastructure.
SAPP Executive Director Stephen Dihwa said the meetings were important in strengthening technical cooperation among member states and developing solutions to challenges affecting the regional electricity sector.
“Mikutano hii inatoa fursa kwa kamati mbalimbali za kitaalamu za SAPP kuwasilisha kazi zao, kubadilishana uzoefu na kutafuta suluhisho la changamoto zinazoikabili sekta ya umeme,” Mr Dihwa said.
He added that the broader objective was to ensure that consumers across Southern Africa had access to reliable, affordable and sustainable electricity.
The push for stronger regional power integration comes as several countries in Southern Africa continue to grapple with electricity supply constraints, highlighting the importance of sharing generation capacity through interconnected grids.
For Tanzania, a stronger role in SAPP could also complement its wider industrialisation ambitions. Reliable electricity and expanded regional markets could support investment in manufacturing, mining, mineral processing and other energy-intensive activities.
However, realising the opportunity will depend on adequate transmission capacity, reliable interconnections and efficient mechanisms for cross-border electricity trading.
The Zanzibar meeting is expected to produce resolutions on strengthening regional power trade, increasing investment in transmission infrastructure and improving energy security among SAPP members.
For Tanzania, the outcome could help determine how effectively the country's growing electricity generation capacity can be converted into a regional economic opportunity.