Tanzania’s Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko, has submitted a robust budget proposal for the Ministry of Energy, amounting to TZS 2.2 trillion for the fiscal year 2025/2026.
The proposed budget allocates 96.5% to development projects, focusing on energy infrastructure expansion, while 3.5% will cover operational costs.
Dr. Biteko’s presentation to Parliament on April 28, 2025, laid out the Ministry's key priorities for the year ahead, focusing on improving energy production, transmission, and distribution across the country.
The 2025/2026 budget is part of the Tanzanian government's ongoing efforts to modernize the country’s energy sector and ensure that every citizen, regardless of location, has access to affordable and reliable energy.
Dr. Biteko emphasized the need to expand the national grid to underserved regions such as Rukwa, Kagera, Lindi, and Mtwara—areas that have historically lagged behind in terms of energy access.
By doing so, the government aims to enhance economic growth, improve living standards, and reduce regional inequalities.
"One of our primary goals is to extend the national grid to areas that have previously been left out. These regions include Rukwa, Kagera, Lindi, and Mtwara. This will ensure that every Tanzanian, no matter where they live, has access to reliable electricity," Dr. Biteko explained.
Beyond grid expansion, the Minister identified several other critical priorities for the upcoming year.
One of the major focuses will be increasing access to electricity in rural areas, mining zones, agricultural sites, industrial hubs, and key community facilities such as health centers.
Dr. Biteko noted that the provision of reliable electricity in these areas is essential for economic development and the delivery of essential services.
"Another priority is to continue our efforts to expand electricity access to rural communities, agricultural sectors, and industrial zones, as well as to vital public services such as healthcare centers. This will not only improve the living conditions of citizens but also boost local economies," said Dr. Biteko.
Further investments in the energy sector are expected to improve the reliability and sustainability of the national grid.
Dr. Biteko highlighted ongoing efforts to strengthen the grid’s capacity, maintain and repair power plants, and enhance the overall efficiency of the energy sector.
The Ministry of Energy also plans to boost the use of clean energy sources, including renewable energy, as part of its long-term strategy for sustainable development.
Another key initiative within the proposed budget is the promotion of clean cooking energy, a priority in line with the National Clean Cooking Strategy (2024–2034).
The strategy aims to reduce reliance on traditional, polluting cooking methods and replace them with more environmentally friendly options.
Dr. Biteko reiterated the importance of this initiative, pointing out that it would not only reduce deforestation but also improve public health by decreasing indoor air pollution.
In line with these goals, the government is looking to ramp up efforts to promote the use of natural gas in vehicles, as well as support the development of cleaner cooking technologies.
Dr. Biteko noted that these steps are vital to reducing the nation’s dependence on imported fuels and improving the sustainability of Tanzania's energy resources.
"Promoting the use of clean cooking solutions and natural gas in vehicles is not just an environmental issue; it is also a matter of national security. By reducing our reliance on imported fuels, we are strengthening our energy independence and improving the economic resilience of the country," he said.
The budget also proposes continued support for the oil and gas sectors, including the exploration, development, and distribution of natural gas.
Dr. Biteko emphasized the need for strategic investments in these areas, as they are key to ensuring energy security and supporting the country’s industrialization agenda.
Additionally, the government plans to increase local participation in the energy sector, ensuring that Tanzanians have more opportunities to engage in energy exploration, production, and distribution.
The energy minister also acknowledged the substantial progress made in the 2024/2025 fiscal year, highlighting several key achievements.
Among these was the completion of the Julius Nyerere Hydropower Project (JNHPP), which has a capacity of 2,115 MW, making it one of the largest power projects in the country.
The completion of a 400kV transmission line connecting the JNHPP power station to Chalinze in the Coast Region was another significant milestone.
Furthermore, several rural electrification projects were completed, bringing power to 12,318 villages across Tanzania, a significant leap from the 506 villages that were electrified in 2007 when the Rural Energy Agency (REA) was established.
"Thanks to the ongoing efforts, we have connected 12,318 villages to the national grid, compared to just 506 in 2007. This marks a tremendous achievement for rural electrification in the country," Dr. Biteko said.
Dr. Biteko also highlighted the government's focus on improving energy access for regions that have previously faced challenges in obtaining reliable electricity.
The Ministry’s investments have increased the number of people connected to the grid, including in areas such as Lindi and Mtwara, where power generation capacity has increased thanks to a 20 MW natural gas power plant in Mtwara.
In the gas sector, Tanzania has made strides by expanding its natural gas distribution network, increasing the length of the network from 102.54 kilometers in 2020 to 241.58 kilometers by April 2025.
This expansion has allowed more Tanzanians to access natural gas, whether for cooking or industrial use.
Mr. David Mathayo, Chairman of the Parliamentary Committee on Energy and Minerals, commended the Ministry for its progress in executing the previous budget's priorities.
"We commend the Ministry of Energy for its progress in implementing the 2024/2025 budget. The Committee is pleased with the outcomes achieved and the continuous cooperation between the Ministry and Parliament to ensure that energy sector projects are successful," Mathayo said.
Looking ahead, the Committee also made recommendations for the 2025/2026 budget, urging the Ministry to continue prioritizing the timely availability of funds for energy projects, ensuring compensation for individuals displaced by infrastructure projects, and increasing the pace of repairs to existing power infrastructure.
With its proposed budget, Tanzania is poised to continue its trajectory towards becoming a leader in sustainable energy access in Africa. By focusing on infrastructure development, rural electrification, clean energy solutions, and local participation in the energy sector, the government aims to drive the country’s economic transformation while addressing the energy needs of all Tanzanians.