Sh2.46 Trillion Allocated to Energy Development as Tanzania Expands Power Capacity Plans




The Parliament of the United Republic of Tanzania has approved a budget of Sh2.53 trillion for the Ministry of Energy for the 2026/2027 financial year, with the bulk of the funds earmarked for development projects.

Out of the approved amount, Sh2.46 trillion—equivalent to 97.5 percent of the total budget—has been allocated to development expenditure, while 2.5 percent will cater for recurrent spending.

Presenting the ministry’s revenue and expenditure estimates, Energy Minister Deogratius Ndejembi told Parliament that the ministry will continue to implement the vision of President Samia Suluhu Hassan, in line with the ruling party manifesto and the national Development Vision 2050.

He said the ministry remains committed to achieving its target of generating 8,000 megawatts of electricity by 2030, noting that preparations are already in place to meet the goal. Looking further ahead, the country aims to produce up to 70,000 megawatts by 2050.

“To achieve these targets, we will utilize all available domestic energy resources, including hydropower projects such as Malagarasi (49.5MW), Kakono (87MW), Ruhudji (358MW), Rumakali (222MW), and others, alongside coal,” Ndejembi said.

On coal-fired power generation, the minister noted that Tanzania possesses significant coal reserves and that the government is working with the private sector to initiate projects capable of producing more than 2,000 megawatts from coal.

He added that additional projects expected to contribute to the 8,000MW target by 2030 include solar power initiatives in Kishapu, Manyoni and Zuzu, as well as wind energy projects in Same and Makambako. The government is also exploring electricity generation through uranium as part of its long-term energy strategy.

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