Tanzania Offers the Cheapest Electricity in East Africa Despite Limited Access
Tanzania’s power sector, while struggling to provide electricity to the entire country, boasts the lowest electricity prices in East Africa, thanks to government subsidies.
Judith Kapinga, Tanzania’s Deputy Minister of Energy, recently disclosed that the country has the cheapest electricity tariffs in the East African region. She attributed this to government subsidies that help reduce costs for consumers, as reported by The Citizen.
Speaking before Tanzanian MPs who sought a status update on the Julius Nyerere Hydro Power Project, Kapinga emphasized that these subsidies ensure Tanzanians enjoy the lowest electricity costs in the region.
“Honorable Speaker, the current electricity price already includes government subsidies, with the average subsidized rate being Sh100 per unit for ordinary users, up to 75 units per month, compared to Sh292 per unit without the subsidy,” she revealed.
Without the government subsidy, consumers would have to pay Sh320 per unit.
Tanzania’s Ongoing Electricity Challenges
Despite these low prices, Tanzania faces significant electricity access challenges. A recent energy progress report, published in June by a collaboration between the International Energy Agency (IEA), the United Nations Statistics Division (UNSD), the World Bank, and other partners, revealed that 36 million people in Tanzania still lack access to electricity.
This places Tanzania fourth among African countries with the largest populations without electricity, behind Nigeria, the Democratic Republic of Congo, and Ethiopia.
Earlier this year, Tanzania announced plans to become a leading manufacturer of electrical equipment. However, this initiative is more focused on diversifying the country’s economy rather than directly addressing its electrical infrastructure challenges.
