The Tanzania Electric Supply Company (Tanesco) has begun working with the private sector to help cover electricity connection costs for eligible households, with each targeted customer set to receive TZS27,000 in support.
Tanesco Managing Director Lazaro Twange said the initiative was aimed at addressing one of the remaining barriers to expanding electricity access—customers' inability to pay connection costs even after power infrastructure has reached their areas.
He said Tanesco has three main responsibilities: generating, transmitting and distributing electricity, adding that Tanzania currently has adequate generation capacity following continued investment in the power sector.
According to Mr Twange, the country's electricity generation capacity currently stands at between 2,500 and 2,600 megawatts, including power generated by independent producers under various agreements with the government.
The government has also set a target of connecting 8.3 million new customers within five years, equivalent to an average of about 1.7 million new connections annually.
Mr Twange said achieving the target would require not only adequate electricity generation but also reliable transmission and distribution infrastructure.
Tanesco's transmission network has reached nearly 9,000 kilometres, with additional infrastructure under construction, while its distribution network extends for more than 220,000 kilometres.
However, he said the challenge in many areas was now at the final stage of connecting individual customers to the grid.
"Having infrastructure in place is not enough if customers cannot afford the cost of being connected. We may still fail to reach our target of connecting more customers," Mr Twange said.
He said some households could afford the connection charges, while others had electricity infrastructure already available in their neighbourhoods but lacked the financial capacity to pay for the final connection.
The situation, he said, had prompted Tanesco to encourage stronger cooperation between the government and private sector to help bridge the affordability gap and ensure existing infrastructure translates into actual household connections.
Under the new partnership, Mr Twange said a private-sector stakeholder had agreed to work with the government to finance electricity connections for some eligible customers in targeted areas.
Each qualifying customer will receive TZS27,000 towards the cost of connection, he said, without specifying the total number of beneficiaries under the arrangement.
The initiative could help Tanesco make greater use of infrastructure already extended to communities by removing a financial barrier preventing some households from accessing electricity.
Mr Twange also acknowledged the contribution of local government leaders, including village, hamlet and street chairpersons, in facilitating electricity projects across the country.
He said the leaders had played an important role in mobilising residents and helping Tanesco secure access to land needed for electricity infrastructure, including persuading residents to allow power lines and related facilities to pass through their land without seeking compensation.
"Village and hamlet chairpersons help us organise meetings and persuade residents to allow electricity infrastructure to pass through their land without demanding compensation. They are doing important work across the country," he said.
Mr Twange urged the local leaders to continue working with Tanesco to ensure that electricity infrastructure already delivered to communities is fully utilised by connecting more residents to the grid.
The move to involve private-sector financing comes as Tanzania seeks to expand electricity access while ensuring that investments in generation, transmission and distribution infrastructure translate into actual connections for households and businesses.
For residents in areas where power lines and other infrastructure have already been installed, the availability of support towards connection costs could determine whether they are able to move from being near the grid to actually receiving electricity in their homes.