Dar es Salaam. Experts have said Tanzania is on the cusp of becoming East Africa’s industrial leader, with reliable energy supply emerging as its greatest advantage.
Backed by surplus power generation, vast natural gas reserves, and bold policy commitments, they say, the country is laying the groundwork for a manufacturing-driven economy that could outpace its regional peers.
The experts were speaking to The Citizen at different occasions about Tanzania’s position to become an industrial leader in East Africa.
The debate stemmed from a recent “hot” discussion on the country's Dira 2050 at a recent forum hosted under the Media Council of Tanzania (MCT).
They said energy has long been a stumbling block in Africa’s industrialisation drive. Across the continent, factories sit idle during blackouts, investors pull back from projects due to power insecurity, and governments struggle to maintain growth momentum without affordable electricity.
Tanzania, however, the economists say is well positioned to break this cycle by turning its energy wealth into a lever for industrial expansion.
“Energy infrastructure is often referred to as the first domino in the chain of industrialisation because it sets everything else in motion,” said Head of Client Coverage, Corporate and Investment Banking (CIB) at Stanbic Bank Tanzania, Mr Elias Ngunangwa.
According to him, Tanzania’s emerging surplus in electricity production is changing the game. “Once that domino falls into place, it unlocks progress in manufacturing, job creation, and inclusive growth.
Tanzania is on the path to becoming East Africa’s leader in manufacturing precisely because we are solving the energy equation.”
A sector at the core of Dira 2050
The National Energy Policy of 2015 and the broader Dira 2050 blueprint place energy at the centre of Tanzania’s economic transformation.
The government aims to increase power generation to at least 10,000MW by 2040, compared to today’s installed capacity of around 2,400MW, with projects such as the Julius Nyerere Hydropower Project (JNHPP) contributing 2,115MW alone.
President Samia Suluhu Hassan has repeatedly emphasised that “energy is the foundation of industrialisation,” noting earlier this year that Tanzania’s surplus would not only meet domestic demand but also turn the country into “a reliable energy exporter in the region.”
This vision aligns with the government’s industrialisation agenda, which pushes for more goods consumed in Tanzania to be produced locally, reducing dependency on imports while creating jobs.
While hydroelectric power remains dominant, droughts have exposed its vulnerabilities. To address this, the government is diversifying through natural gas and renewables.
“Tanzania is blessed with abundant natural gas reserves, including Songo Songo and Mnazi Bay. Gas already fuels major industries in Dar es Salaam and beyond,” noted Ngunangwa. He described gas as “a critical bridge” that sustains industrialisation while the country scales up renewable projects such as solar and wind.
Figures from the Ministry of Energy show that Tanzania has over 57 trillion cubic feet of natural gas reserves, positioning it as one of Africa’s strongest players in energy-driven industrialisation.
Beyond resources, energy infrastructure requires heavy financing. Here, financial institutions like Stanbic Bank have been instrumental.
“It goes beyond traditional lending,” Ngunangwa explained. “We provide tailor-made solutions for energy infrastructure, including green bonds and Public-Private Partnerships (PPPs). These innovative models are helping to mobilise capital for critical projects like transmission lines.”
His views are echoed by Executive Director of Tanzania’s Public-Private Partnership Centre (PPPC), Mr David Kafulila, who noted: “The government cannot rely solely on borrowing or taxes. PPPs provide technical expertise and capital that accelerate the rollout of infrastructure crucial for industrialisation.”
Regional competitiveness
Energy ambitions are not confined to Tanzania’s borders. The country is part of the East African Power Pool and already exports electricity and gas during shortages in neighbouring countries.
“Becoming a net exporter of energy will boost Tanzania’s economic influence,” said an independent energy analyst, Ms Happiness Mshana. “It enhances regional competitiveness by attracting industries that want to operate in a reliable and cost-effective power environment.”
She added that with regional integration under the African Continental Free Trade Area (AfCFTA), Tanzania’s energy strength could underpin broader manufacturing trade across East Africa.
For sectors like cement, steel, glass, and textiles, among the most energy-intensive, Tanzania’s surplus is more than just numbers on a grid. It is a guarantee of stability, a magnet for foreign direct investment, and a driver of local job creation.
“Manufacturing growth follows energy security,” argued an economist at Mzumbe University, Johnson Mboya. “When Tanzania completes the Julius Nyerere project and scales up renewables, it will gain an edge over regional peers like Kenya and Uganda, where energy costs remain a major barrier to industrial growth.”
For Ngunangwa, energy is Tanzania’s ace card. “With infrastructure in place, diversified sources, and regional collaboration, Tanzania is not just preparing for industrialisation, it is positioning to lead it.”
This is a vision strongly tied to Dira 2050, which paints a future where Tanzania is a middle-income country powered by strong industries, advanced infrastructure, and inclusive growth.
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