Tanzania: Economic Stability in Peril Over Ongoing Power Outages.

By Adonis Byemelwa

Despite promises from the Tanzanian government to end power rationing by March 2024, the continued struggle with electricity shortages has cast a shadow over the nation's economic stability. The Deputy Minister of Energy, Judith Kapinga, provided updates on February 1, assuring the public that trials at the Mwalimu Nyerere Hydropower Plant (JNHPP) would be completed by February 16, bringing 215 megawatts to alleviate the crisis.

In a recent development on February 16, Kapinga announced the successful trials of the No. 9 generator at the Mwalimu Nyerere Dam, producing 235 megawatts. While she reiterated the government's commitment to ending power rationing by March 2024, concerns were raised by the Speaker of the Parliament, Dr. Tulia Ackson, regarding the government's changing deadlines.

The power rationing crisis, which commenced in September 2023 due to electricity production shortages, has inflicted severe economic consequences. Businesses in major cities like Dar es Salaam, Mwanza, Mbeya, and Arusha have borne the brunt, with small-scale traders facing challenges in running entrepreneurial projects.

Despite Tanzania's abundance of natural resources, providing affordable access to electricity remains a daunting task. Critics emphasize the need for a strategic focus on reliable and cost-effective energy sources, such as natural gas, to address the persisting power issues.

The current trajectory of the power sector, marked by a shift away from coal and natural gas, has raised apprehensions. The Tanzania Electric Supply Company (Tanesco) has encountered challenges, including system errors in gas-fired power plants, leading to intermittent outages.

Tanesco reported a significant profit of Sh109.45 billion in the 2021/22 financial year. However, mismanagement and poor planning have hindered the effective harnessing of Tanzania's energy potential.

Coherent planning, transparent procurement processes, and strategic investments in Independent Power Projects (IPPs) have been deemed essential.

The government's commitment to resolving the power crisis is under scrutiny, with the Parliament extending the deadline to June 2024.

This shifting timeline has further eroded public confidence in the government's ability to provide a sustainable solution to power outages.

The economic toll of power shortages is evident in the struggles faced by businesses and entrepreneurs. In major cities, power outages have left businesses in the dark, affecting daily operations.

 Small-scale traders, including juice vendors and welding projects, are grappling with financial losses, exacerbating the economic challenges already faced by many.

Notwithstanding the promise of economic growth and development, the power sector's nonchalance toward leveraging natural resources like natural gas has hindered progress.

 Observers point to successful models in countries like South Korea, which efficiently harnesses its energy potential and boasts twice the electricity generation of 48 Sub-Saharan African nations combined.

The legacy of former President John Pombe Magufuli, who prioritized industrialization and reliable energy, has faced challenges since his passing. Cabinet reshuffles have seen leadership changes, with mixed results in addressing power shedding and outages.

The recent revelation of a system error in Tanesco's gas-fired power plant in August 2023 added to the woes.

 While Tanesco recorded profits, the lack of a coherent strategy and reliance on temperamental energy sources like hydro, wind, and solar have raised concerns about long-term sustainability.

The emphasis on coal and natural gas, which are reliable for base load capacity, has been downplayed in favor of alternatives with inherent challenges.

Critics argue that the Mtwara corridor project, relying on coal, is key to unlocking the southern region's potential and contributing to Tanzania's GDP growth.

The need for strategic planning and transparent procurement processes is paramount to overcome the historical challenges faced by Tanzania's energy sector. Independent Power Projects (IPPs) should play a crucial role in providing reliable, affordable, and sustainable energy solutions.

As Tanzanians grow weary of the persisting power challenges and the unfulfilled promises from their leaders, the scrutiny intensifies on the government's commitment to delivering tangible and sustainable solutions by June 2024.

 The economic consequences of prolonged power shortages underscore the pressing need for a comprehensive and effective energy strategy to propel Tanzania's progress and ensure economic stability.

In contrast to Tanzania's struggles, South Korea, a nation geographically small enough for one to traverse from one point to another within four hours, stands out as a remarkable example.

The country boasts twice the amount of electricity generated by 48 Sub-Saharan African nations combined. South Korea has emerged as a beacon of success in efficiently harnessing its energy potential.

Tanzania, on the other hand, finds itself grappling with a disparity between political rhetoric and effective implementation.

Despite the abundant natural resources that could facilitate the generation of reliable and affordable energy, the nation's progress in this crucial sector has been hindered by a lack of tangible action.

The juxtaposition of South Korea's energy success with Tanzania's ongoing challenges serves as a poignant reminder that the time has come to emulate successful models.

On a lighter note, both Tanzania and South Korea attained independence in the same year, making it imperative for Tanzania to reflect on the missed opportunities and strive for transformative change.

It is time for Tanzanian leaders to move beyond mere podium promises and rhetoric, taking concrete steps to implement a robust energy strategy. Emulating the success of nations like South Korea could be a catalyst for driving economic development, industrialization, and overall progress.

As Tanzania navigates its way through power rationing and outages, there is a critical need for a paradigm shift in energy planning. A strategic focus on reliable sources, such as natural gas, and a commitment to transparent procurement processes are essential components for sustainable growth in the energy sector.

The urgency lies in learning from success stories, adapting proven strategies, and fostering a culture of implementation. With South Korea serving as a testament to the transformative power of effective energy policies, Tanzania has the opportunity to harness its potential and overcome the persistent challenges that have hindered progress for far too long.

In the pursuit of economic stability and progress, the Tanzanian government must heed the lessons from nations that have successfully navigated energy challenges. By doing so, Tanzania can pave the way for a brighter and more energized future, leaving behind the era of empty promises and embracing a path of tangible and sustainable development.