Dr Evans Rweikiza
Executive Director
Tanzania Private Sector Foundation
April 2010
OVERVIEW OF LIGHTING IN
TANZANIA
According to the World Bank;
 Grid connection is notoriously poor throughout Africa
 Tanzania has one of the lowest rates of electrification
in the world
 Only 10% of the population has access to the electricity
grid, and in rural areas only 2% have access
 Not everyone in that community has power at their
OVERVIEW .........................
house even if the grid passes through it
 Connections to the grid are expensive and the waiting
list for the utility to make the connection is long
 It is obvious that many people in Tanzania lack access
to a functioning electricity and they keep relaying on
other sources of fuel for lighting, cooking,
communication, etc.
LOW RATE OF ELECTRIFICATION & ITS IMPACTS
 Increased use of fossils fuel sources to generate
electricity such as diesel/petrol generators;
 Contributing to global warming due to high carbon
emission, deforestation, etc
 Increased poverty as the costs for such fuel are high,
prevalence of illnesses due to inhalation of the hazard
smoke, increased production costs for the industry
sector
 Under development of private sectors in rural
settings – there is lack of serious investment in
rural energy sector in any part of our country
IMPROVING ELECTRIFICATION IN TANZANIA
 The need to have a scheme guarantee appropriate power
source to reduce household expenditures on lighting while
providing improved quality, enhanced durability, clean,
safe, easy to access products and services.
 Effective alternative energy sources for generating
electricity;
 Wind
 Solar energy
 Natural gas
 Biomass
 Small-scale hydropower
 Geothermal energy
SOCIO-ECONOMIC BENEFITS OF ELECTRIFICATION
 Job creation through foreign investment in energy-
intensive manufacturing
 New employment opportunities
 Small business development, for example, in shops
and hair salons
 Change of lifestyle, for example: access to refrigeration,
extended working hours and access to
communications and other modern technology
SOCIO-ECONOMIC BENEFITS…….
 Improved security
 Improved education levels
 Rural development
 Higher GDP
 Reduced local air pollution levels, through reduced
wood burning
 Major health benefits through fewer paraffin burns
and poisoning, as well as vaccine refrigeration, water
pasteurization and a decrease in respiratory disease
PPP FOR IMPROVING ELECTRIFICATION IN THE
COUNTRY
 Tanzania Private sector Foundation is
recognises the efforts made by Rural
Energy Agency by opening and coming up
with an innovative approach that could help
individual entrepreneurs to participates and
invest in Rural Energy sector.
 For the success of this initiatives the Public Private
Partnership need to be observed at every stage of
implementation
PPP FOR IMPROVING ELECTRIFICATION.........
 Identification of national companies that could be
interested in the rural electrification programme need to
be done
 Implementation of awareness raising and promotional
actions in order to inform these companies of all the new
business and investment opportunities arising
 Empowering local entrepreneurs and communities with
technical and financial resources for them to lead to
establish and operate sustainable community-based energy
companies
 Govt should provide grant to private sector wishing to
invest in rural areas where there is limited financial
benefits
TPSF Experience in Business Plan Competition
• TPSF is recommending this approach as
through business plan competition
individual business idea that are doable
could be conceived for funding
• TPSF had run similar competition and the
positive result has been realized in the first
round where about 3.3 billion were
awarded to entrepreneurs through out the
country
CONCLUSION
 The shortage of energy in rural settings posses a major
road block in the development of private sector which
drives the economy of this country
 The cost of doing business has increased to an
alarming rate where the consumers bares a lot of cost
and automatically this reduce the purchasing power.
 Unless the government is investing heavily in the rural
energy then the sustainable economic development
will be a reality
CONCLUSION ..........
 TPSF recognizes investments happening in the
energy sector which is crucial for private sector
development
 TPSF call up on development of policy/guideline to
ensure fully participation of private sector in this
initiative
THANK YOU!