PARLIAMENT PASSES THE 2026/2027 ENERGY MINISTRY BUDGET BY A LANDSLIDE





📌 TZS 2.53 trillion approved

📌 Government to introduce TZS 27,000 electricity connection project in urban areas with rural characteristics

📌 2000 MW coal-powered electricity project underway

The Parliament of the United Republic of Tanzania has overwhelmingly approved a budget of TZS 2.53 trillion for the Ministry of Energy for the 2026/2027 fiscal year.

Out of the total amount, TZS 2.46 trillion (equivalent to 97.5%) has been allocated to development projects, while 2.5% will cover recurrent expenditures.

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

He emphasized that the ministry is committed to achieving its target of generating 8,000 megawatts of electricity by 2030, with a long-term goal of reaching 70,000 megawatts by 2050.

To meet this target, the government plans to utilize all available energy sources, including hydropower projects such as Malagarasi (49.5 MW), Kakono (87 MW), Ruhudji (358 MW), and Rumakali (222 MW), as well as coal.

On coal-based power generation, the minister noted that Tanzania has significant coal reserves and is working with the private sector to begin producing more than 2,000 megawatts from this source.

Other projects contributing to the 2030 target include solar power initiatives in Kishapu, Manyoni, and Zuzu, wind power projects in Same and Makambako, and electricity generation using uranium.

Regarding electricity access, the government aims to ensure power generated reaches citizens and key economic sectors such as mining and industries.

The construction of a 220kV transmission line from Songea–Tunduru–Masasi–Mahumbika, connecting the national grid to the regions of Mtwara and Lindi, is ongoing, with contractors already paid TZS 83 billion.

The minister also directed Tanzania Electric Supply Company Limited and Rural Energy Agency to collaborate with Members of Parliament to identify urban areas that resemble rural settings, where residents currently pay higher connection fees. A special project will ensure such households are connected to electricity at a cost of only TZS 27,000 within one year.

“This government under President Samia Suluhu Hassan is responsive and will not tolerate inequality where one group pays TZS 27,000 and another pays TZS 320,000,” he said.

On electrification of institutions such as schools and health centers, REA has been instructed to conduct assessments and connect those still lacking electricity in already electrified villages.

Regarding fuel supply, the minister explained that global challenges—such as disruptions in the Strait of Hormuz, which accounts for 20% of global oil supply—pose risks. However, Tanzania has sufficient reserves, and no fuel stations have been closed due to shortages.

He added that the government is working to stabilize fuel prices and ensure consistent supply, supported by the construction of new storage facilities in Kigamboni, Dar es Salaam.

To improve fuel distribution, a pipeline from Dar es Salaam to Ndola, Zambia, is under construction, with storage depots planned in Morogoro, Njombe, and Songwe regions to reduce road congestion and logistical pressure.

In the natural gas sector, the Tanzania Petroleum Development Corporation is implementing several projects, including a 34-kilometer gas pipeline from Ntorya to Madimba and drilling a new well at Mnazi Bay, which has shown gas reserves double earlier estimates. Exploration is also ongoing in the Eyasi Wembere block.

On the Liquefied Natural Gas (LNG) project, the minister confirmed that Tanzania is in the final stages before implementation. Commercial and fiscal agreements have been completed, with legal agreements currently underway.

Preparatory activities such as compensation payments and the construction of Likong’o School have already begun.

To ensure local participation, the government has directed TPDC to provide awareness and training programs in Lindi region, while the Petroleum Upstream Regulatory Authority will build capacity among local stakeholders so they can benefit from opportunities in the LNG project.

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