A review of private investment in Tanzania’s power generation sector

Abstract

This study investigates recent developments in Tanzania’s electric power generation to understand how to facilitate investment in the sector. Interviews were conducted with key public and private stakeholders; utility data was analysed and critical secondary source documents were reviewed. All interview data was triangulated to ensure integrity of findings. It was concluded that investment in the sector is suboptimal due to a lack of coherent planning; of processes related to contract negotiation; and of a commitment to contract with independent power projects. Research and analysis is limited to generation, but there are also implications for the distribution sector. The value of the findings extends beyond Tanzania across Africa and to other developing regions, where countries struggle to attract investment into electric power generation.