Tanzania’s investment of more than Sh2 trillion in electricity infrastructure in Mbeya is expected to strengthen industrial growth, unlock mining opportunities and position the region as a strategic hub for cross-border electricity trade within the Southern African Development Community (SADC).
Vice-President Deogratius Ndejembi said on Thursday that the investment, being implemented by the government under President Samia Suluhu Hassan, reflected its commitment to using reliable energy infrastructure to drive economic transformation.
He made the remarks during an inspection of the ongoing construction of the Iganjo power substation, one of the strategic projects aimed at strengthening electricity supply and supporting economic activities in the country.
Ndejembi said the investment would extend its benefits beyond Mbeya, creating opportunities for industrial development, mining, trade and electricity exports to neighbouring countries.
He said the projects would also strengthen Mbeya’s position as a gateway to the SADC region, given its strategic location connecting Tanzania with other southern African economies.
“The investment will not only benefit the people of Mbeya but also open up opportunities in mining, industry and trade, while strengthening Tanzania’s capacity to supply electricity to neighbouring countries,” he said.
The Vice-President commended the Ministry of Energy and the Tanzania Electric Supply Company (Tanesco) for the progress made on the project, expressing optimism that the substation would be energised by December 2026.
He urged the officials and contractors involved to maintain the pace of construction and ensure the project was completed on schedule so that businesses and communities could begin benefiting from the investment.
Tanesco Managing Director Lazaro Twange said the Sh175.7 billion Iganjo substation project had reached 89.25 per cent completion as of October 11, 2026.
He said Chinese contractor TBEA was expected to complete the works required to energise the facility in November 2026, while the Vice-President expressed confidence that the substation would be operational by December.
The facility will step down electricity from 400 kilovolts (kV) to 220kV and 33kV, helping improve power supply in Mbeya and Songwe regions.
Twange said the infrastructure would support industrial production and mining operations in Saza and Chunya, where reliable electricity is essential for expanding economic activities.
Beyond improving local power supply, the substation is expected to strengthen the national grid by connecting new electricity generation projects at Rumakali, Ngozi and Kiwira.
It will also facilitate the interconnection of Tanzania’s and Malawi’s electricity grids, creating opportunities for cross-border power trade and enhancing Tanzania’s participation in the regional energy market.
The development comes as reliable electricity infrastructure remains critical to attracting investment, expanding industrial capacity and supporting regional economic integration.
Uyole MP and former Speaker of the National Assembly Tulia Ackson commended the government for investing in the project, describing it as a significant milestone for the constituency, Mbeya Region and the country.
She said the project demonstrated the government’s commitment to improving essential infrastructure, noting that reliable electricity was a key driver of economic growth and improved livelihoods.
The Vice-President’s visit forms part of government efforts to monitor the implementation of development projects and ensure public investments translate into tangible benefits for citizens and businesses.