Tanzania, Zambian firms in talks over landmark electricity export deal

The Tanzania Electric Supply Company (Tanesco) and Zambia’s Kanona Power Limited are reportedly in discussions over a groundbreaking electricity trade agreement that could see Tanzania exporting power to Zambia and beyond.

Sources familiar with the negotiations indicate that the deal, once finalised, would be set at a premium rate, exceeding the cost Tanesco currently pays for imported electricity from Ethiopia, The Citizen reports.

Pending regulatory approvals, the trade is expected to generate rapid returns, with projections suggesting that Tanzania’s Julius Nyerere Hydroelectric Project could recover its investment costs within four years.

Tanesco confirmed the ongoing talks in a statement on Saturday, March 22, 2025, describing them as preliminary but promising.

The company’s business development manager, Magoti Mtani, said the agreement could significantly boost Tanesco’s revenue, ensuring efficient operations.

“Tanesco has engaged with Kanona Electric Company of Zambia to explore electricity trade in the Southern region, with potential expansion into neighboring countries,” Mtani said.

Tanzania currently generates 3,431 megawatts (MW) of electricity, with 58 percent from hydropower, 35 percent from gas, and seven percent from other renewable sources.

By 2030, the country aims to expand capacity by 2,463 MW, leveraging solar, wind, and geothermal energy.

Mtani also credited Tanzania’s sixth-phase administration, under President Samia Suluhu Hassan, for supporting strategic energy projects that have positioned the country as a key regional.

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