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Tanzania launches $8.4 million power project to curb power outage

Simon Osuji by Simon Osuji
October 2, 2025
in Energy
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Tanzania launches $8.4 million power project to curb power outage
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Tanzania major city, Zanzibar, has launched an $8.4 million electricity stabilisation project aimed at modernising its grid and ending years of unreliable supply and costly blackouts.

The project, led by Novavis International Ltd, will install automatic voltage regulators, capacitor banks to stabilise Zanzibar’s power supply.

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Speaking at the launch, President of Zanzibar, Hussein Ali Mwinyi, described the project as a crucial move in addressing Zanzibar’s long-standing power challenges.

He noted that the islands had faced serious issues due to rising demand and an overstretched undersea cable from the mainland.

“When we came in, our electricity supply was plagued by various problems, including an overwhelmed undersea cable from the mainland,”

“These challenges were driven by a growing population and rising demand. This project is critical in stabilising distribution and ensuring reliable supply,” Mwinyi said.

Push for energy access

The initiative, which began in July 2023, is already helping businesses cut costs especially those that depended on expensive diesel generators are now benefiting from a more stable grid.

Mwinyi added that the government’s broader goal is to make electricity affordable and accessible to every household.

Under the Zanzibar Energy Sector Transformation and Access (ZESTA) programme, over 70,000 households are expected to be connected.

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Connection fees are being reduced to Sh100,000 ($37) from the current Sh200,000 ($74).

The Ministry of Water, Energy and Minerals explained that the stabilisation project was designed as a 24-month contract.

The first phase, which installed 33-kilovolt automatic voltage regulators and capacitor banks, has been completed.

The second phase, which focuses on the STATCOM system, is 99.9 percent complete. So far, 55 concrete poles, 36 voltage regulators, 37 capacitor banks, and the STATCOM unit have been delivered and installed.

Addressing power gaps

In January, residents and small-scale business owners in Zanzibar are experiencing significant challenges due to persistent and unpredictable power interruptions.

These unscheduled blackouts caused substantial economic losses, particularly for businesses dealing with perishable goods .

However, Principal Secretary of the Ministry, Joseph Kilangi, said the investments are designed to address technical weaknesses that have plagued Zanzibar’s electricity network for years.

The Secretary explained that Zanzibar has long faced voltage fluctuations, overloads, and technical losses that often forced ZECO to impose emergency power cuts.

He added that the new upgrades will stabilise supply, improve demand management, and reduce dependence on temporary solutions.



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