In a landmark move to modernize its energy infrastructure, the Government of Tanzania is opening its electricity transmission sector to private investment for the first time . This strategic policy shift aims to close critical infrastructure gaps, meet rising industrial and domestic demand for electricity, and support the country’s broader industrialization goals .
The government will pilot this new model with one to two transmission projects, which are expected to be officially announced later this year . This initiative represents a significant step towards increasing private sector involvement in a domain traditionally managed by the state utility, TANESCO.
This opening creates immediate and strategic opportunities for international engineering firms, technology providers, and investors. Key areas of opportunity include Engineering, Procurement, and Construction (EPC) services, the supply of high-voltage equipment, and the implementation of smart grid technologies for digitization and improved grid management .
Furthermore, Tanzania’s role as a hub in the Eastern Africa Power Pool creates additional prospects for companies specializing in cross-border interconnection projects as the country continues to expand and modernize its power infrastructure to support economic growth and energy access These opportunities arise from the government’s focus on improving grid reliability, interconnectivity, and increasing electricity access under national strategies including Vision 2025, the Electricity Supply Industry Reform Strategy, and regional integration efforts.
