The report attributes this surge to rapid population growth combined with the limited affordability of alternative sources of cooking energy
Dar es Salaam. Over the past three years, the Bank of Tanzania (BoT) has reported a sharp increase in the value of charcoal sales, which have more than doubled.
According to the central bank’s Consolidated Zonal Economic Performance Report for the Quarter Ended March 2025 and that of March 2024 shows charcoal sales rose from Sh3.5 billion in the year ending March 2023 to Sh7.6 billion in the year ending March 2025.
This growth was not sudden but part of a steady upward trend, as the year ending March 2024 had already recorded Sh5.96 billion in sales.
The report, released on August 25, 2025, attributes this surge to rapid population growth combined with the limited affordability of alternative sources of cooking energy such as liquefied petroleum gas (LPG).
The findings come at a time when the government is implementing its National Clean Cooking Energy Strategy, which aims to ensure that 80 percent of Tanzanians shift away from firewood and charcoal by 2034.
While charcoal sales continued to climb, the same period saw firewood sales decline from Sh165.1 million in the year ending March 2023 to Sh125.9 million in the year ending March 2025.
Drivers of rising demand
Commenting on the trend Executive Director of the Research on Poverty Alleviation (Repoa) institute, Dr Donald Mmari said population growth is one of the major factors behind rising charcoal sales, particularly at a time when alternative sources of cooking energy remain limited. “Beyond their limited availability, the cost of alternatives is still high,” he explained.
“Many households depend on LPG, which is petroleum-based. Its price is influenced by global market dynamics and requires importation, making it expensive.”
Dr Mmari suggested that one practical solution lies in promoting the production and use of alternative charcoal made from raw materials that do not harm the environment. However, he noted that current production of such charcoal is small-scale and distribution remains limited.
“Producers have yet to reach large-scale levels,” he said.
“It is important to increase the number of producers and support them with equipment so they can manufacture enough to meet demand and reach wider markets.”
He added that another reason charcoal sales keep rising is the presence of a reliable customer base, which encourages forest-based charcoal producers to continue production.
“Awareness is also critical,” Dr Mmari said. “Traditional charcoal producers often lack alternative economic activities. Many have been in this trade for 20 or 30 years, and they keep producing because they have guaranteed buyers.
Once alternative charcoal is widely promoted and adopted, traditional producers will lose customers and shift to other forms of income generation.” He also urged closer attention to LPG production and supply chains as a way of lowering costs and expanding access.
“The issue of price is what troubles most people,” he said, pointing out that flexible payment methods or systems that allow consumers to buy according to usage should be strengthened to make LPG more affordable.
Affordability gap
For many households, affordability remains the central challenge. A cooking gas vendor, Sabrina Mashaka explained that charcoal offers flexibility that LPG does not.
“Someone can buy charcoal for as little as Sh1,500 or Sh2,000 and cook for the whole day,” she said. “But with LPG, you cannot make such small purchases. I have heard of systems that allow people to buy gas in small amounts in certain areas. If government could scale that up, it would make a big difference.”
She also highlighted the importance of expanding access to natural gas distribution, noting that it could help bring down prices and enable more people to shift away from charcoal and firewood.
Price interventions
Government efforts to address high energy prices are already underway. On February 27, 2025, President Samia Suluhu Hassan announced a subsidy programme targeting cooking gas. The initiative aims to create a favourable environment that will encourage greater private sector participation in LPG processing and distribution.
Under the subsidy plan, the government covers 50 percent of the cost of a gas cylinder for rural households, while residents contribute the remaining 50 percent.
In urban areas, the subsidy stands at 20 percent, with users paying 80 percent of the cost, in line with regulations under the Rural Energy Agency (REA).
President Samia outlined these measures while launching the second phase of a project to distribute 452,000 gas cylinders to households during her visit to Muheza District, Tanga Region.
In May 2025, Deputy Minister for Energy Judith Kapinga reported in Parliament that subsidies ranging from 20 to 50 percent had already been applied to 452,445 LPG cylinders distributed to end users. She emphasized that this was part of ongoing government efforts to promote clean cooking energy.
“The government, through REA, will also distribute 200,000 improved cookstoves at a discount of up to 75 percent,” she said.
“In addition, REA will facilitate the installation of clean cooking systems in public institutions serving more than 100 people.”
Plans for the future
To further address affordability, the government announced in August 2025 that it was preparing to begin bulk importation of cooking gas through the Petroleum Bulk Procurement Agency (PBPA) once enabling infrastructure is completed.
This system is expected to reduce LPG prices, making it more accessible to ordinary households and encouraging the shift to clean energy.
PBPA director Erasto Simon explained the ongoing preparations during a press briefing on August 7, 2025. He noted that while bulk procurement has successfully stabilised petroleum imports, LPG has not yet been included due to infrastructure limitations that restrict large vessels from docking.
“With bulk procurement, you need to consolidate large orders to bring in big shipments,” he said.
“That requires suitable offloading facilities and storage. Current infrastructure only allows small vessels. We are now expanding ports, building offloading terminals, and installing pipelines capable of moving large volumes of LPG to storage facilities.”
Simon added that once these developments are completed, LPG will be included in the bulk procurement system.
“The benefit is clear,” he said.
“When gas is imported in bulk, the overall cost will fall, and consumers will be able to afford it.”
Balancing growth and sustainability
The steady rise in charcoal sales illustrates the gap between national targets for clean energy adoption and the reality faced by many households.
As government subsidies, infrastructure projects, and awareness campaigns progress, stakeholders remain focused on narrowing this gap. For now, however, charcoal continues to dominate as a daily energy choice, driven by affordability, accessibility, and consumer habits.
This story is sponsored by the Bill & Melinda Gates Foundation. If you have any comments about this story, send us a message via WhatsApp at: 0765 864 917.
