The initiative aims to increase Tanzania’s power generation capacity to 1,000 megawatts by 2030, ensuring reliable electricity for domestic use and export.
By Prosper Makene
TANZANIA has signed a memorandum of understanding with Siemens Energy of Sweden to construct gas-fueled power plants with a total capacity of 177 megawatts, worth $320 million.
The project, facilitated by CRDB Bank, involves manufacturing equipment in Tanzania and commissioning it by the end of 2027.
Raddy Energy Solution Limited, the parent company of Raddy Fibers, is leading the project.
The initiative aims to increase Tanzania’s power generation capacity to 1,000 megawatts by 2030, ensuring reliable electricity for domestic use and export.
The Tanzania-Sweden business forum, held in Stockholm, facilitated the partnership between Raddy Energy and Siemens Energy. Tanzanian Ambassador Mobhare Matinyi and Raddy Energy CEO Ramadhan Hassan Mlanzi led the Tanzanian delegation.
Swedish government agencies, including the Swedish Energy Agency (EKN), Swedish International Development Cooperation Agency (SIDA), and Business Sweden, are supporting the project. The Swedish National Institute of Technology (NIR) will provide technical support.
The project is expected to boost Tanzania’s energy sector and economic growth through increased power generation and infrastructure development. CRDB Bank is providing financing for the project, with the Swedish government agencies supporting the initiative.
Moreover, the timely initiative aligns with Tanzania’s development goals, aiming to increase access to reliable and affordable energy. Siemens Energy will provide technical expertise and equipment for the project.
It further expected to create opportunities for local employment and skills development in the energy sector. Raddy Energy and Siemens Energy will work together to ensure the successful implementation of the project.
The Tanzanian government supports initiatives that promote economic development and energy security through public-private partnerships. The partnership with Siemens Energy and Raddy Energy demonstrates the country’s commitment to energy development.
The project is a significant step towards enhancing Tanzania’s energy infrastructure and economic prospects. With this deal, Tanzania is poised to take a major leap forward in its energy sector.
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