Tanzania's rural electrification transforms local businesses and industries

Tanzania's rural electrification transforms local businesses and industries
Banking & Financial Services
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After living in Kawe near Dar es Salaam, Mosi Gungurugwa moved to Buyuni, a small village in Chalinze district. Seeking new business opportunities, she initially started a mobile money business and later opened a salon, relying on solar energy. The limited reliability of solar power and the high costs of generators were challenges. However, the electrification of Buyuni has transformed her business into a successful stationery shop, benefitting locals who used to travel for basic services.

Buyuni's electrification is part of the Tanzania Rural Electrification and Expansion Project (TREEP) with $550 million funding from the International Development Association. This initiative aims to enhance electricity services, boost renewable energy, and improve the financial sustainability of Tanzania’s energy sector.

Mariam Yusufu and other local business owners have expanded their operations significantly due to access to electricity. Before, Yusufu's shop was much smaller, but now offers a broader range of products including refrigerated items. Hidaya Tinde, a local food vendor, similarly expanded her offerings, generating additional income to support her family.

For Yahaya Omary, the coming of electricity enabled him to transition from a crowded motorbike taxi market to owning a mobile money and cellphone service shop. Electrification has also led to the growth of small industries like brickmaking and welding, contributing to increased council revenue and attracting new residents to Buyuni. Shimba Bilal, a local farmer, explained that electricity and income from brickmaking encouraged him to settle in the area.

The rural electrification program has significantly increased connectivity, impacting nearly 8 million people, and connecting numerous healthcare, educational, and business facilities. Nathan Belete, World Bank Country Director, recognized Tanzania's commitment to energy access and leadership, highlighted by the hosting of the Mission 300 Africa Energy Summit.

In Tanga, the Ngageni women's group, led by Fatma Kaimu, experienced similar benefits. Previously relying on a generator for irrigation, the introduction of grid power improved their farming capabilities, allowing for year-round okra cultivation. This has shifted their focus to fertilizer to further enhance their agricultural output.