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Grid Transmission Distribution Tanzania Trade Opportunities

Tanzania Opens Electricity Transmission Sector to Private Investment

The Government of Tanzania is set to open electricity transmission projects to private investment for the first time, representing a significant step towards increasing private sector involvement in the country’s energy sector. The government will pilot this model with one to two transmission projects, which are expected to be officially announced later this year.  The new policy direction aims to close infrastructure gaps, meet a rising demand for electricity, and support the country’s industrialization efforts.

There are several strategic opportunities for U.S. companies to participate in electricity transmission projects in Tanzania, as the country continues to expand and modernize its power infrastructure to support economic growth and energy access. These opportunities arise from the government’s focus on improving grid reliability, interconnectivity, and increasing electricity access under national strategies including Vision 2025, the Electricity Supply Industry Reform Strategy, and regional integration efforts.

Key Opportunities for U.S. Companies

  1. Engineering, Procurement, and Construction (EPC) Services

Tanzania has several transmission line and substation expansion projects, especially in under-electrified and rural areas. U.S. firms with EPC expertise can bid for projects funded by international financial institutions.

  1. High-Voltage Equipment and Components Supply

Transmission lines and substations require transformers, circuit breakers, switchgear, protection systems, insulators, and conductors. U.S. manufacturers with proven technologies can supply high-quality, durable products for transmission infrastructure.

  1. Grid Digitization and Smart Technologies

Tanzania is working to modernize grid operations with SCADA systems, remote monitoring, smart meters, and grid management systems. U.S. firms specializing in grid automation, digital substations, AI-powered load management, and cybersecurity for critical infrastructure can offer scalable solutions.

  1. Cross-border Interconnection Projects

Tanzania is a hub in the Eastern Africa Power Pool (EAPP) and Southern African Power Pool (SAPP). Interconnection projects with Kenya, Zambia, and Uganda offer opportunities for U.S. companies in cross-border transmission line construction and regional grid harmonization and stability solutions.

  1. Capacity Building & Technical Assistance

There is demand for skill development in transmission system operation, protection engineering, asset management, and renewable grid integration. U.S. firms and institutions can provide workforce training, advisory services to TANESCO (national utility company) and consulting for regulatory framework development such as wheeling tariffs and IPP integration. 

For additional business insights and to analyze your company’s prospects in this growing region, contact Commercial Specialist Athanasius Lupatu at the U.S. Commercial Service, U.S. Embassy, Dar es Salaam Athanasius.Lupatu@trade.gov.