The project, implemented by Novavis International Ltd, focuses on installing automatic voltage regulators, capacitor banks, and a Static Synchronous Compensator (STATCOM) system at the Mtoni Substation in Unguja
Unguja. Zanzibar President Hussein Ali Mwinyi has launched an $8.4 million electricity stabilisation project that promises to transform power reliability across Unguja and Pemba, hailing it as a landmark step in addressing decades of supply challenges.
The project, implemented by Novavis International Ltd, focuses on installing automatic voltage regulators, capacitor banks, and a Static Synchronous Compensator (STATCOM) system at the Mtoni Substation in Unguja.
The US-based Novavis International Ltd has Tanzanian ownership.
Speaking here on Wednesday, October 1, 2025 at the launch ceremony, President Mwinyi said the initiative marks a turning point for Zanzibar’s power sector.
“When we came in, our electricity supply was plagued by various problems, including an overwhelmed undersea cable from the mainland,” he said. “These challenges were driven by population growth and rising demand. This project is critical in stabilising distribution and ensuring reliable supply.”
The project, which began in July 2023, has already started easing operational costs for businesses, particularly hotels, which previously depended on expensive diesel generators. Mwinyi added that the broader goal is to make electricity affordable and accessible to all Zanzibaris.
Under the Zanzibar Energy Sector Transformation and Access (ZESTA) programme, he said, over 70,000 households will soon be connected to the grid, with connection fees set to drop further.
“In the near future, the cost of connecting electricity will be Sh100,000. When we came into office, the fee was above Sh400,000. We brought it down to Sh200,000, and now we are reducing it further,” he said, drawing applause from the audience.
Mwinyi also underscored the government’s push for renewable energy projects under the Ministry of Water, Energy and Minerals, including solar and wind initiatives, to expand supply and ensure universal access.
A multi-phase upgrade
According to the Ministry, the stabilisation project is being implemented under a 24-month contract. The first phase, which involved installation of 33-kilovolt automatic voltage regulators and capacitor banks, has been completed.
So far, 55 concrete poles, 36 voltage regulators, 37 capacitor banks, and the STATCOM unit have been delivered and installed.
On Unguja, 24 voltage regulators and 26 capacitor banks have been commissioned in areas such as Tungu, Kitogani, Ubago, Chiuni, Mahonda, Donge, Upenja, Fukuchani, Kiembe Samaki, Fumba, and Nungwi.
On Pemba, nine voltage regulators and five capacitor banks have been installed in locations including Dodo Pujini, Wesha, Kiungoni, Konde, Wete, and Bahanasa.
The STATCOM system at Mtoni Substation will balance the 33-kilovolt grid supplied from mainland Tanzania, ensuring steady voltage and a more reliable flow of power to consumers.
Principal Secretary in the Ministry, Joseph Kilangi, said the investment directly addresses long-standing flaws that have hampered distribution.
“For years, we have struggled with voltage fluctuations, overloads, and technical losses that forced ZECO to resort to emergency measures, including power cuts,” he said. “These new systems will significantly improve voltage quality, enable better management of rising demand, and reduce the need for temporary fixes.”
Kilangi stressed that the upgrades will not only benefit households but also support industries, hotels, and small businesses that rely heavily on stable electricity.
Advanced technology
Novavis International CEO Eric Kasarika highlighted the advanced technology deployed in the project, saying the equipment stabilises power, minimises fluctuations, and strengthens low-voltage supply.
“The equipment was sourced from the United States, China, India, Australia, and South Africa,” he said. “We have installed voltage regulators that can automatically adjust and balance supply as demand rises or falls.”
By 2027, the energy sector is expected to benefit from additional grid investments and oversight from the European Union, particularly in strengthening governance and ensuring projects deliver maximum value to citizens.
President Mwinyi concluded by stressing that reliable power lies at the heart of his administration’s development vision.
“Reliable energy is the backbone of our economy,” he said. “With these investments, we are not only solving today’s problems but also preparing for the Zanzibar of tomorrow.”
