The Energy Ministry in Tanzania has been given a significant budget boost for 2025–2026 by the Tanzanian government, with goals to improve sustainable cooking energy options, increase access to power, and improve transportation of natural gas and electricity.
The budget, which was Sh1.88 trillion in the current fiscal year, has been increased by 19% to Sh2.25 trillion.
It is expected that the increase, announced in the Parliament by Energy Minister Doto Biteko, will address the growing demand for electricity, reduce Tanzania's dependence on traditional cooking fuels and enhance its integration with regional energy networks.
According to him, Sh2.17 trillion (96.5 percent) of the budget will be allocated to development projects, which span a wide range of initiatives in areas such as electricity transmission and electrification.
In the fiscal year 2025 and 2026, the Hamlet Electricity Project IIB (HEP IIB) was one of the most significant projects funded. This project consists of the construction of 13,180.56 kilometres of medium-voltage distribution lines and 14,016.50 kilometres of low-voltage distribution lines between 9,009 hamlets.
A total of 8,003 100kVA transformers and 1,006 200kVA transformers will be installed as part of the project, which is expected to cost approximately Sh1.39 trillion. This project will benefit 290,300 customers. As Dr Biteko confirmed, the project will be financed by domestic resources of Sh350 billion and Norwegian contributions of Sh2.26 billion.
Additionally, Tanzania's growing capacity for electricity generation is also reflected in the increase in its budget.
The role of Tanzania in regional power pools such as the Eastern African Power Pool (EAPP) and the Southern African Power Pool (SAPP) is becoming increasingly prominent. A growing electricity surplus in Tanzania positions the country well to participate in regional power trading, according to Dr Biteko. A 400kV transmission line has been completed between Singida-Arusha-Namanga, linking Tanzania with Kenya and the East African Power Pool. Morover, Tanzania will be connected to the SAPP via Zambia through the 400kV Iringa-Mbeya-Tunduma-Sumbawanga transmission line, which spans 620 km.
Tanzania is also investigating the possibility of exporting electricity to Zambia and is negotiating a 100 MW purchase from Ethiopia through Kenya.
The government is concentrating on encouraging clean cooking energy in addition to increasing access to electricity. In addition to 40,000 electric stoves, Dr. Biteko described plans to distribute 370,000 upgraded cooking stoves in rural and peri-urban areas. Additionally, the government would keep up its Liquefied Petroleum Gas (LPG) cylinder distribution program, which provides citizens with subsidized LPG cylinders.
Additionally, 400 public institutions, including schools, vocational colleges, and prisons, would receive Sh4.7 billion from the World Bank to help distribute clean cooking technologies and establish clean cooking systems. For these initiatives, Sh20 billion has been set aside in total.
The National Strategy for Clean Cooking Energy (2024–2034), which seeks to guarantee that 80 percent of Tanzanians utilize clean cooking energy by 2034, is in line with the government's clean cooking programs. The government has already started installing clean cooking systems in schools in Mwanza, Dodoma, and Morogoro in collaboration with the European Union (EU) and the United Nations Capital Development Fund (UNCDF). There are also plans to expand into Dar es Salaam, Pwani, and Mwanza.
In order to make energy access more affordable, the Parliamentary Committee on Energy and Minerals suggested in its observations that the government change its policy regarding electricity connection fees to allow rural residents to pay in instalments rather than all at once.