Tanzania has urged foreign companies to invest in the country’s energy market, as only 10% of the country’s estimated hydroelectric power potential of 4780MW has been harnessed. The government is currently preparing a new electricity policy to end the state-owned power company, Tanzania Electric Supply Company’s, monopoly in the energy sector. Domestic or international private companies will be allowed to invest in the field. The new policy is to be implemented after approval by the cabinet.

Electricity tariffs in Tanzania are very high compared with other east African countries. Tanzania Electric Supply Company is charging more than 14 US cents per kWh to customers, while in neighbouring countries the charge is about six US cents per unit.