TANZANIA
1.
2.
3.
4.
GENERAL OPERATING ENVIRONMENT
ENERGY AND RENEWABLE ENERGY
ENVIRONMENTAL GOVERNANCE
ORGANIZATIONS, SOURCES, REFERENCES
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-1GENERAL OPERATING ENVIRONMENT
1.1 Basic Facts & Geography
1.2 People & Society
1.3 Culture & Business Culture
1.4 Infrastructure & Logistics
1.5 Government & Legislation
1.6 Economy
1.7 International Trade, Tanzania & Finland
1.8 Education
1.9 General Operating Environment - Summary
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1.1 BASIC FACTS & GEOGRAPHY
Location
Area
Borders
Climate
Terrain
Natural hazards
Eastern Africa
947 300 km2 (94 % land, 6 % water)
West: Democratic Republic of Congo (459 km)
North West: Burundi (451 km)
North West: Rwanda (217 km)
North: Uganda (396 km)
North East: Kenya (769 km)
East: Indian Ocean (1 424 km)
South: Mozambique (756 km)
South: Malawi (475 km)
South West: Zambia (338 km)
Tropical (coast), temperate (highlands)
Coastal plains, central plateau, highlands in north & south
Rainy season flooding, droughts, volcanic activity
Source: CIA, World Bank, OECD

Tanzania is located in Eastern Africa. It is positioned on the Indian Ocean coast and its neighbouring countries
are DRC, Burundi, Rwanda, Uganda, Kenya, Mozambique, Malawi and Zambia (CIA)

After Tanganyika and Zanzibar gained independence from UK in 1961 resp. 1963, they merged to form
Tanzania in 1964 (CIA)

Tanzania has a tropical climate. In the highlands, temperatures range between 10 and 20 °C during cold and
hot seasons respectively. The rest of the country has temperatures rarely falling lower than 20 °C. The hottest
period extends between November and February while the coldest period occurs between May and August.
Annual temperature is 32 °C

Kilimanjaro is the highest point in Africa and one of only two mountains on the continent that has glaciers
(the other is Mount Kenya). There is also one active volcano in Tanzania, Ol Doinyo Lengai. On the central
plateau there are floods during the rainy season. Drought is a big problem causing deforestation and soil
degradation. The coast has a tropical climate and the terrain is plain. In the northern and southern highlands
the temperature is cooler. Tanzania has large lakes, Lake Victoria in the north, Lake Tanganyika in the west
and Lake Malawi in the south

There are three of the largest lakes on the continent: Lake Victoria (the world's second-largest freshwater
lake) in the north, Lake Tanganyika (the world's second deepest) in the west, and Lake Nyasa (Lake Malawi) in
the southwest parts
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1.2 PEOPLE & SOCIETY
Population, total
Population, growth
Population, density
Urban population
Rural population
Population (0-14 years)
Population (15-64 years)
Population (65 years and above)
Life expectancy at birth
Major cities(2009)
2009
2010
43,52 mil.
44,84 mil.
3%
3%
2
49/km
51/km2
26 %
26 %
74 %
74 %
45 %
45 %
52 %
52 %
3%
3%
57
57
Dodoma - capital
Dar es Salaam - (3,2 million)
Mwanza (1,2 million)
2011
46,22 mil.
3%
…
27 %
73 %
45 %
52 %
3%
58
Source: CIA, World Bank

Tanzania’s efforts to control corruption do not seem to have a lot of success, as corruption is still rampant.
Tanzania CPI is at the same level as Argentina and Indonesia (RABOBANK)

Poverty has declined only slightly over the last decade in Tanzania. Poverty remains widespread, with one in
three living below the poverty line (RABOBANK)

The fast-growing population, growing at 3 % a year increases the difficulty in fighting poverty and improving
public services. Nevertheless, the country has made progress in meeting Millennium Development Goals.
Child mortality has been reduced markedly, while also combatting diseases moves forward steadily
(RABOBANK)
1.3 CULTURE & BUSINESS CULTURE
Language
Ethnic groups
Religion
Official: English, Swahili (de facto)
Other: Arabic, many local languages
Bantu (95 %) – more than 130 tribes
Other African (4 %)
Asian, European, Arab (1 %)
Christian (30 %)
Muslim (35 %)
Indigenous beliefs (35 %)
Source: CIA, OECD

The Finnish Embassy in Dar es Salaam doesn’t recommend travelling to western Tanzania to the border areas
of Rwanda, Burundi or Democratic Republic of the Congo due to violent robberies that have happened in
those areas. There is a risk of international terrorism in both Tanzania and Zanzibar. One should avoid all
political or religious rallies. Armed robberies and credit card frauds are in the increase in the whole of the
country (FINPRO)
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
In most ethnic groups in Tanzania, traditional norms still result in a strong division of labor between men and
women. On the whole, women also have a lower standard of living than men. Women employed in the work
place are still most commonly found in roles such as teaching and nursing (COMMUNICAID)

Both education and experience are important and respected qualities in Tanzania. It is important to pay
attention to others’ credentials and afford them respect. Foreigners tend to be held in high regard based on
their international expertise (COMMUNICAID)
1.4 INFRASTRUCTURE & LOGISTICS
Railways:
Roads:
Ports:
Waterways:
Airports:
3 700 km
91 000 km (total)
6 500 km (paved)
84 500 km (unpaved)
Dar es Salaam
Zanzibar
Lake Tanganyika
Lake Victoria
Lake Nyasa (Lake Malawi)
Total: 106 (11 paved, 95 unpaved)
Zanzibar, Moshi, Dar es Salaam
Source: CIA, Logistics Cluster, EIU

Dar es Salaam is a major port in East Africa in the container sector. Dar es Salaam is a major port in terms of
tonnage and containers handled and, alongside Mombasa, is one of the key transhipment centres for the East
Africa region (AfDB)

Shipping in territorial and offshore waters in the Indian Ocean remain at risk for piracy and armed robbery
against ships, especially as Somali-based pirates extend their activities south; numerous commercial vessels
have been attacked and hijacked both at anchor and while underway; crews have been robbed and stores or
cargoes stolen (CIA)

Infrastructure is very old and not in an efficient use (FINPRO)

The length of the trunk network is adequate. Even if Tanzania’s road density indicators look relatively low by
some standards, the trunk network provides basic regional and national connectivity. It links the capital to
the coast as well as the international border crossings and the internal provincial capitals (AfDB)

Tanzania’s rail corridor is of strategic importance to the region (north-east and east-south (AfDB)

Tanzania stands out for allowing competition in its domestic air transport market. Tanzania allows
competition in its domestic air transport market and has more than one air transport provider. The only
other country permitting competition in its domestic air transport sector in the region is South Africa (AfDB)

The country has a poor infrastructure, with just 10% of the population having access to electricity
(RABOBANK)
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1.5 GOVERNMENT & LEGISLATION
Official name
Conventional short form
Form of state
Regions and districts
Government
Legal system
Independence
Corruption perception index (2011)
United Republic of Tanzania
Tanzania
Federal presidential constitutional republic
26 main regions
President: Jakaya Kikwete (since 2005)
National Assembly: 357 members
Parties: Revolutionary Party
English common law
1961-1964 (from UK)
100 (out of 183 countries)
Source: CIA, World Bank, Transparency International

Despite the broad political stability, anti-government sentiment is mounting, fuelled by a high unemployment
rate as well as public discontent with rising inflation, a weak shilling, power cuts and authorities’ oppressing
methods (RABOBANK)

Political tensions are increasing since the opposition is pushing for constitutional reforms. Political risks are
now considerable (FINPRO)

As of 2010 Tanzania was ranked Partly Free by Freedom House. The 2011 Democracy Index marked Tanzania
th
nd
as a "hybrid regime", ranking it 90 out of 167, an improvement from 92 the year before
1.6 ECONOMY
World bank ranking
Currency
GDP (current US$) (billions)
Structure of the economy (% of GDP)
- Agriculture
- Industry
- Services
GDP growth (annual %)
GNI per capita, PPP (current intl.)
Inflation, consumer prices (annual %)
Ease of doing business ranking
Low Income
Tanzanian shilling (TZS)
2009
21,37 bil.
29 %
24 %
47 %
6%
$ 1350
12 %
127
(out of 181)
2010
22,92 bil.
2011
23,71 bil.
28 %
25 %
47 %
7%
$ 1430
6%
131
(out of 178)
27 %
27 %
46 %
6%
$ 1510
13 %
128
(out of 183)
Source: CIA, World Bank, OECD

Like many other Sub-Saharan African countries, Tanzania is one of the poorest in the world in terms of GDP
per capita (FINPRO)

The inflation rate (consumer prices) has also been quite high recently, 12 % in 2009 followed by 6 % in 2010
and 12 % in 2011. Inflation is in the rise again due to steadily increasing food prices. (FINPRO)

Real GDP growth is now expected to slow as electricity shortages and poor rains restrict overall output. Poor
energy and transport infrastructure will keep growth below potential (EIU)
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
In 2011, East Africa was hit by its worst drought for 60 years. Tanzania experienced the consequences of the
drought in its power supply, which relies for more than half on hydro-electric dams. As remaining water in
hydro-electrical dams reached critical levels in July 2011, electricity was rationed and persistent power
shortages occurred (RABOBANK)

The agricultural sector is one of the key sectors of the economy, contributing nearly 30% to GDP and
employing nearly 80% of the labor force (RABOBANK)
1.7 INTERNATIONAL TRADE, TANZANIA & FINLAND
Export of goods and services ($)
Import of goods and services ($)
Net export ($)
FDI net inflows (% of GDP)
2009
4,96 bil.
23 % of GDP
7,51 bil.
35 % of GDP
-2,55 bil.
1,94 %
2010
5,97 bil.
26 % of GDP
8,65 bil.
37 % of GDP
-2,68 bil.
1,89 %
2011
7,15 bil.
30 % of GDP
9,99 bil.
42 % of GDP
-2,84 bil.
…
Source: CIA, World Bank, OECD

The export commodities are gold, coffee, cashew nuts, manufactures and cotton, and the most important
export partners are India (8,5 %), China (7,6 %), Japan (7, 1 %), Netherlands (6,2 %) and the UAE (5,7 %)
(FINPRO)

The most important import commodities include consumer goods, machinery and transportation equipment,
industrial raw materials and crude oil. Most important import partners are India (14 %), China (13,7 %), South
Africa (7,8 %), Kenya (6,9 %) (FINPRO)

Exports seem to be geographically diversified, since none of the countries have a share over 10 %. This could
partly explain why the country was so little affected by the financial crisis (FINPRO)

Gold production has been growing significantly in the past decade. Tanzania is Africa’s third largest gold
producer after South Africa and Ghana (FINPRO)

Economic progress seems favorable in general and the only concern is the inflation pressure. So far, the
country has been able to keep its macroeconomic policies stable (also with the support of WB and IMF),
which shows in good performance during the global recession (FINPRO)

Finland and Tanzania have long-standing relations in development cooperation, but trade happens on a very
small scale. Bilateral development cooperation has many projects in forestry related issues so investment
opportunities could be found via these connections, even though the sector is small in Tanzania. There is also
some cooperation in ICT and energy (FINPRO)
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1.8 EDUCATION
Literacy rate, % of people ages 15 and above, 2009
Primary school enrolment, % net, 2010
Higher education:
Largest universities:
73 %
91 %
Public universities, public university
colleges/institutes
Private universities, private university
colleges/institutes
University of Dar es Salaam
Open University of Tanzania (Dar es Salaam)
Mzumbe University
St. Augustine University of Tanzania (Mwanzay)
Institute of Finance Management (Dar es
Salaam)
Source: World Bank, Herana Gateway

Public universities and university colleges fall under the jurisdiction of the Ministry of Higher Education,
Science and Technology (MHEST), while public non-university institutions are regulated by respective
government ministries. The Directorate of Higher Education in the Ministry coordinates all the activities of
public universities (HERANA GATEWAY)

Dar es Salaam city is the major location of over 40 % of the public and private higher educations in Tanzania
raising some critical questions about the equitable distribution of these institutions and their accessibility to
the majority of Tanzanians especially those in rural areas (HERANA GATEWAY)

The low participation rate in higher education in Tanzania can be attributed to the low participation rate in
secondary education, which in turn is attributed to low budgetary allocation to secondary education
compared to primary education (HERANA GATEWAY)
1.9 GENERAL OPERATING ENVIRONMENT - SUMMARY

Stable political environment.

Tanzania’s popularity as a tourist destination is growing. Large potential in future regarding income from
tourism, with opportunities also for business sector.

Poor economic performance. Ease of doing business index shows lack of support in business environment.

Poverty situation is improving very slowly also due to high inflation and rising prices of food.

Very problematic energy conditions. Electricity shortages and blackouts.
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-2ENERGY & RENEWABLE ENERGY
2.1 General Situation in Energy Sector
2.2 Energy Policy
2.3 Renewable & Fossil Energy Resources
2.4 Supply & Demand for Energy Solutions
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2.1 GENERAL SITUATION IN ENERGY SECTOR
Total energy consumption:
Energy consumption per capita:
Electricity consumption:
Electricity consumption per capita:
Access to electricity:
Access to electricity urban population
Access to electricity rural population
Energy imports (% of energy use)
Electricity imports (% of electricity use)
Power production capacity:
Hydro power production capacity:
Electricity production:
Hydro electricity production:
Share of population using solid fuels:
Fossil fuels % of total energy
2009
228,1 TWh
5,2 MWh/capita
3,73 TWh
86 kWh/capita
14 %
39 %
2%
8%
0%
957 MW
579 MW
4,63 TWh
2,65 TWh
90 %
11,1 %
1990
113,2 TWh
2,6 MWh/capita
1,30 TWh
7%
506 MW
329 MW
1,63 TWh
1,46 TWh
6,9 %
(IEA, World Bank, IRENA, UN data)
Major sources of commercial energy in Tanzania are petroleum, hydropower and natural gas. 81 % of population use
traditional solid fuels such as fuel-wood and charcoal in residential sector for heating, light and cooking. The
residential sector contributed 73 % of energy consumption in 2009. Further development of the use of biomass and
extension of national electricity grid would reduce this consumption greatly.
Self-sufficiency

Energy import is only 8 % of energy consumption in Tanzania

Tanzania has no proven oil reserves. Tanzania has one oil refinery in Dar es Salaam with capacity of 17,500
barrels per day. Oil imports were estimated at 30,040 bbl/day (2009). Total petroleum product imports were
1,705 ktoe in 2009 and the only energy resource imports that year. The petroleum import bill is estimated at
US$ 160 million per year, accounting for 30% of the country’s foreign currency earnings. This constitutes
about 8% of total national imports.

Grid connections to Zambia and Uganda enable small amounts of electricity import (5-10MW).
(Reegle Country Profile), (MBendi)
Electricity availability

14 % of the population had access to electricity in 2009. Only 2% of rural people and 39% of urban people
have access to electricity. Only 1% is able to use electricity for cooking. 37.7 million people are lacking access
to modern energy services.

Distribution from power stations occurs via 2,986 km of 220 kV transmission lines, 1,971 km of 132 kV lines,
and 554 km of 66 kV lines. The grid runs primarily East-West through the centre of the country. Northern and
southern areas lack easy grid access.
(Reegle Country Profile)
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Electricity capacity

Due to droughts over the East Africa region there are low water levels in the hydro-electric dams causing
power cuts. Tanzania Electric Supply Company (Tanesco) has needed to rely on gas-powered generators and
Tanesco plans to meet future demand with more thermal electricity projects

Peak demand in 2010 was 879 MW. Capacity was that year 660 MW and 192 MW of emergency power plants
were retired. The lack of margin for stable operation of the power system network grows more acute. New
power generation and transmission projects are needed
Tanzania electricity consumption per capita was 85/kWh per annum in 2009. Consumption is growing at a
rate of 11 – 13% per annum. (Reegle Country Profile)
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Source: IEA Country Energy Balance, 2009
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2.2 ENERGY POLICY
Energy policy publications
Organizations responsible for energy policies
Targets to increase use of renewable energy
Subsidies/ Incentives for Renewable Energy
The National Energy Policy (2003)
Ministry of Energy and Minerals /
Department of Energy
No information available
Feed-in Tariffs for renewables approved 2009
The National Energy Policy 2003 (link)

Formulated in 2003 to Revision the 1992 National Energy Policy. Focussed on market mechanisms and means
to reach the objective, and achieve an efficient energy sector with a balance between national and
commercial interests.

The overall aim of the policy is to have affordable and reliable energy supplies in the whole country;
o
have affordable and reliable energy supplies in the whole country;
o
reform the market for energy services and establish an adequate institutional framework, which
facilitates investment, expansion of services, efficient pricing mechanisms and other financial
incentives;
o
enhance the development and utilisation of indigenous and renewable energy sources and
technologies;
o
adequately take into account environmental considerations for all energy activities;
o
increase energy efficiency and conservation in all sectors; and
o
increase energy education and build gender-balanced capacity in energy planning, implementation
and monitoring.
The 2009 Electricity Act (link)

Opened the Tanzanian electricity sector for private companies. Ended 40 year monopoly held by TANESCO in
the national power sector. Independent power producers (IPP) penetration so far has been limited, but is
steadily increasing.
The Rural Energy Act of 2005 (link)

Established the Rural Energy Board, Fund and Agency responsible for promotion of improved access to
modern energy in rural areas.
National Solar Programme

Tanzania is in the process of implementing a National Solar Programme under the World Solar Programme
(WSP). The government has declared two of its five project proposals submitted to UNESCO as being of high
national priority. These are: village level solar electrification and small islands solar electrification. Efforts
have been made to seek donor support; however, no funds have been committed yet.
(Reegle Country Profile)
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Energy efficiency
No governmental projects are currently under-way in the sector. Energy efficiency development is slow due
to limited capacity in strategic planning at Ministerial levels, a lack of awareness, a lack of financial resources
for investing in efficient equipment, a shortage of technical capacity to disseminate the skills and adaptation
of the technologies, and other issues. (Reegle Country Profile)
Subsidies/ Incentives for Renewable Energy

Feed-in Tariffs, approved 2009 (Tanzania Renewable Tariffs (link), Feed-in-Tariffs for Renewables (link))
Other

Tanzania is member of Eastern African Power Pool (EAPP) (link) and Southern African Power Pool (SAPP) (link)
which are promoting regional integration in energy development and policy.

Tanzania was included in a 2005 study commissioned by The Energy, Environment and Development Network
for Africa (AFREPREN) (link) and Heinrich Böll Stiftung to examine the biomass co-generation and geothermal
potentials of Ethiopia, Kenya, Tanzania and Uganda.

In an effort to increase access to electricity, the government is promoting Small Power Projects of up to 10
MW, through the introduction of a simplified implementation framework. The MEM, EWURA and the REA are
developing the framework for renewable energy projects. The framework shall include a Standardised Power
Purchase Agreement (SPPA), Standardised Power Tariff Methodology, and a Standardised Power Tariff (SPT).

Power System Master Plan 2007-2031 (PSMP) presents strategic Visions, Scenarios and Action Plans for
Enhancing Tanzania Power Systems towards Next Generation Smart Power Grid (link). Short and medium
term projects have been identified. These include: the processing of a number of PPAs relating to
interconnections with neighbouring countries and IPPs, the construction of new generation facilities
(including 100 MW at Ubungo, 60MW at Nyakato – Mwanza, and 222 MW at the Rumakali Hydropower
Project), the expansion of the high-voltage transmission network, and further studies into wind energy
projects at Singida and Makambako.

In 2008, the Energy Development and Access Expansion Project, a US$111.5 million International
Development Association credit and Global Environment Facility grant, was approved by the World Bank.
This project is primarily focused on the improvement of TANESCO's transmission and distribution grid. The
project also supports renewable energy options, namely, mini-hydropower generation, biomass cogeneration, and solar energy. Mechanisms to encourage investment include a US$ 500 grant for each new
rural connection using RE sources, and a Sustainable Solar Market Packages program, providing effective
power solutions for a wide range of sectors. Rural Energy Agency and Innovation in Delivery of Modern
Energy Services to Rural Areas (link)
(Reegle Country Profile)
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2.3 RENEWABLE & FOSSIL ENERGY RESOURCES
Significant renewable energy resources
Proven oil reserves
Wide renewable energy resources
0 BBL
OPEC
Fossil fuels

The Tanzania Petroleum Development Corporation (TPDC) (link) undertakes oil exploration and development
in the country. The natural gas company, Songas, is jointly owned by Globeleq, TANESCO, TPDC, the Tanzania
Development Finance Company Ltd. (TDFL) and Finance for Development (FMO).
(Reegle country profile)
Solar energy

Although potential for solar PV technology is good with an average daily solar insolation of 4.6 kWh/m², the
potential has hardly been tapped. Solar PV in Tanzania has mainly been implemented by donor and NGO
projects for dispensaries, hospitals, offices and communication technology, but has also found use in lighting,
radio, TV, and in a few cases for water pumping. Recent estimates on the installed capacity of PV systems in
the country is about 1.7 MW, however market potential for solar PV countrywide is estimated to be 20.2MW.
Tanzania is now experiencing significant growth in its PV market (100kW in 2005 to 350kW in 2008).
(Reegle Country Profile)
Wind energy
Tanzania has large areas with average wind speeds of 5-7m/s. There is, therefore, a technical potential for
electricity generation from wind energy. There are about 7 wind sites potential for electricity generation.
Wind turbine installations amount only to 8.5 kW. It is estimated that about 58 wind pumps have been
installed in Tanzania. This potential has not been fully exploited, mainly due to the high initial cost of pumps.
(Renewable Energies in Africa (link), Reegle Country Profile)
Biomass energy
Tanzania has 4.39 billion m3 of woody growing stock with an annual increment of 140 million m3. There are
about 15 million tons per annum of crop residues available for use as fuel. The estimated theoretical cogeneration potential in Tanzania is over 395 MW. Currently, the country has an installed capacity of 33 MW
from both sugar and wood-based industries. Studies have revealed that Tanzania has the capacity to
generate more than 200MW of electricity per annum from sugar cane residues (bagasse), in four sugar
factories, namely Mtibwa, Kilombero, Kagera and TPC. Estimated energy generation potential from excess
bagasse is about 99.42 GWh per year. (Reegle Country Profile)
Geothermal energy

Rift Valley is potential area for geothermal exploitation. At least 15 thermal areas with hot spring activity
occur in Tanzania. Potential geothermal sites could contribute up to 650 MW to the country’s energy mix,
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however the potential is still under investigation, and geothermal power is still a long-term option for the
country (Geothermal Energy as an Alternative Energy Source for Tanzania (link), Geothermal Exploration in
Tanzania - Status Report (link))
(Reegle Country Profile)
Hydropower
With hydroelectric power potential estimated to be 3,800 MW, of which only roughly 382 MW has been
exploited, Tanzania has a high potential for investment in its hydropower sector. Moreover, with a large
isolated rural community unable to access the national grid, the government of Tanzania has placed rural
electrification as a major component of its rural development programs, with hydropower being a suitable
energy source for such purposes. (Reegle Country Profile)
2.4 SUPPLY & DEMAND FOR ENERGY SOLUTIONS
Households

Heat for cooking and warm water

Power for lighting, communication and electronics
Commercial and public services - including healthcare, education, administration, business

Power, heat and cooling
Infrastructure - including water supply, sanitation, communication, waste management

Power, heat and fuels
Traffic and transportation

Fuels and power for vehicles
Agriculture

Fuels for vehicles

Fertilizer

Power and heat for processing crop
Industry

Heat, cooling and power
Tourism - including resorts, lodges etc.

Heat, cooling, electricity, warm water
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Competition

The electricity sector is dominated by TANESCO, which is a vertically integrated utility owning generation,
transmission and distribution facilities for electricity supply in Tanzania. Due to the high cost of diesel,
TANESCO have not dispatched power from APR Energy, a global temporary power provider, in recent times.
TANESCO operates the main transmission network of the country, through which the vast majority of
electricity flows. Some small decentralised grid systems also exist, operated by private IPPs or communities.

The recent Electricity Act 2008 has liberalized the electricity generation, transmission and distribution sector.
The effect of liberalization is to remove the monopoly of state owned electricity companies to generate,
transmit and distribute electricity.

There are a few Independent Power Producers (IPPs) in the generation of electricity, including short-term
emergency rental power plants. Songas has a long-term contract (over 10 years) to provide power, while
Artumas Group & Partners (Power) has an interim power purchase agreement, which is renewable each year.
Aggreko, APR Energy and Dowans are emergency power providers with short-term contracts (2 years). By the
end of 2008, IPPs contributed a total installed capacity of 282 MW.

Questions have been raised concerning the lack of private sector investment into long-term electricity
generation capacity. The current low level of electricity tariffs make the construction of large capacity power
plants unfeasible, as evidenced by TANESCO's operating loss of US$18 million in 2010, whilst charging an
average tariff of 8.6 USc/kWh. (Reegle country profile)
(Reegle Country Profile)
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-3ENVIRONMENTAL GOVERNANCE
3.1 Description of Environmental Governance
3.2 Environmental & Social Requirements for Projects
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3.1 DESCRIPTION OF ENVIRONMENTAL GOVERNANCE
According to African Development Bank Country Strategy Paper 2011 – 2015, Tanzania’s strengths include liberties
such as freedom of press, speech and religion, and freedom of assembly and associations. Challenges remain in weak
transparency and accountability of institutions, business climate bottlenecks and deteriorating educational quality.
Despite good macroeconomic progress, the incidence of poverty remains high. There are also serious environmental
threats, which climate change is aggravating. The state of transport, energy and water infrastructure remains poor.
(AfDB 2011).
Responsibilities for environmental issues are divided into several different ministries, like the Ministry of Natural
Resources and Tourism, and the Ministry of Water. The National Environment Management Council (NEMC) came into
being in 1983 when the Government of Tanzania enacted the National Environment Management Act No. 19. The
mandate of NEMC includes:

To enforce and ensure compliance of the national environmental quality standards.

To review of Environmental Impact Statements (EIS) and conduct environmental monitoring and auditing of
projects and facilities.

To undertake and co-ordinate research, investigation and surveys in the field of environment and collect, and
disseminate information.

To carry-out research and surveys for the proper management and conservation of environment.

To render advice and technical support to entities engaged in natural resources and environmental
management.

To initiate and evolve procedures and safeguards for the prevention of accidents which may cause
environmental degradation.

To enhance environmental education and public awareness; and establish and operate national
environmental information system for sound environmental management.

To publish and disseminate manuals, codes and guidelines relating to environmental management and
prevention or abatement of environmental degradation.
3.2 ENVIRONMENTAL & SOCIAL REQUIREMENTS FOR PROJECTS
The legislation for Environmental Impact Assessments (EIA) came into force in Tanzania only in 2004 with the
Environmental Management Act. According to Sosovele (2011), the number of EIAs has rapidly increased after the
official regulations. However, numerous projects are still conducted without an EIA, although required by the law.
Sosovele argues that even the central government has implemented several large construction projects with no EIA.
Also the quality of EIAs done has been questionable. Local decision makers’ awareness on legal requirements is low,
although most decisions on development projects take place at this level. There are also cases there municipal leaders
and the National Environment Management Council have made contradictory decisions. One problem is also that
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NEMC is unwilling to oppose government development projects for environmental reasons, even though acting as a
watchdog is a part of NEMC mandate.
NEMC determines the required level for environmental assessment. Projects can be required to conduct a full EIA or a
preliminary assessment, or it can be deemed that no EIA is needed. In some cases NEMC can also reject the project
proposal. For full EIA also a public information programme is required and public consultations organized. For
controversial projects, NEMC will organize its own additional public hearings. EIAs can only be done by individuals and
firms registered at NEMC. (Rebelo and Guerreiro 2006).
Projects listed as requiring an EIA in the Environmental Management Act include:

General:
o
any activity out of character with its surrounding;
o
any structure of a scale not in keeping with its surrounding; and
o
major changes in land use.

Urban Development.

Transportation.

Dams, rivers and water resources.

Aerial spraying.

Mining, including quarrying and open-cast extraction

Forestry related activities.

Agriculture including.

Processing and manufacturing industries including.

Electrical infrastructure.

Management of hydrocarbons including the storage of natural gas and combustible or explosive fuels.

Waste disposal.

Natural conservation areas.

Nuclear Reactors.

Major development in biotechnology including the introduction and testing of genetically modified
organisms.

Any other activity as may be prescribed in the regulations.
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-4ORANIZATIONS, SOURCES, REFERENCES
4.1 Organizations & Funding Possibilities
4.2 Sources of Information, References & Links
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22 (28)
4.1 ORGANIZATIONS & FUNDING POSSIBILITIES
ENERGY
Ministry of Energy and Minerals (MEM) (link)

The MEM has responsibility for setting and reviewing policies and strategies as set out in the National Energy
Policy and the National Energy Strategy through issuances and guidelines. (Reegle)
Department of Energy (DoE)

The Department of Energy within the Ministry of Energy and Minerals works on new and renewable energy
issues, including the planning and implementation of biomass projects. There are strong links to national
NGOs, higher learning institutions, private companies and other relevant institutions, which frequently act as
implementing partners. (Reegle)
Ministry of Industries and Trade (link)

This is the parent ministry of the Centre for Agricultural Mechanisation and Rural Technology (CAMARTEC)
and the Small Industries Development Organisation (SIDO) which have both played key roles in biomass
technology development and dissemination. SIDO is responsible for planning, coordinating, promoting and
offering technical, economic and management services to small industries. It has carried out several projects
in the sector. Other areas of competence are design and fabrication of stoves for residential and institutional
applications (Reegle)
Rural Energy Agency (REA) (link) and the Rural Energy Fund (REF)

Established under the Rural Energy Act in 2005. The Agency is governed by the Rural Energy Board, which
was established in 2006 to oversee the administration of the Rural Energy Fund. (Reegle)
Rural Energy Fund (REF)

Established under the Rural Energy Act in 2005. The REA is an autonomous agency under the MEM, and has
been in operation since October 2007. The major functions of the REA are: to
o
Promote, stimulate, facilitate and improve modern energy access for productive uses in rural areas,
in order to stimulate rural economic and social development
o
Promote rational and efficient production and use of energy, and facilitate identification and
development of improved energy projects and activities in rural areas
o
Finance eligible rural energy projects through the REF
o
Prepare and review application procedures, guidelines, selection criteria, standards and terms and
conditions for the allocation of grants
o
Build capacity and provide technical assistance to project developers and rural communities
o
Facilitate the preparation of bid documents for rural energy projects. (Reegle)
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The National Environment Management Council (NEMC) (link)

Established in 1986, is part of the Vice President’s Office. The main role of the NEMC is to perform an
advisory role to the government on all matters relating to environment management. In particular, the
NEMC sets environmental standards for project investment in conjunction with the Tanzania Bureau of
Standards (TBS), which sets and approves technical equipment specifications. (Reegle)
The Energy and Water Regulatory Authority (EWURA) (link)

An autonomous multi-sectorial regulatory authority, established under Cap 414 of the laws of Tanzania.
EWURA commenced its operations on 1st of October 2005.

EWURA is responsible for:
o
Promoting effective competition
o
Protecting consumers and suppliers
o
Promoting the availability of regulated services to all consumers, including low-income and rural
communities
o
Taking into account the need to protect the environment, and
o
Enhancing consumer knowledge of the regulated sectors
o
Tariff-setting, and the issuing of licenses to prospective actors in the power sector (Reegle)
The recent Electricity Act 2008 has liberalized the electricity generation, transmission and distribution sector. The
effect of liberalization is to remove the monopoly of state owned electricity companies to generate, transmit and
distribute electricity.
TANESCO (link)

The state-owned utility is still the dominant player, accounting for 68% of installed generation capacity in
September 2008. Although TANESCO distributes and supplies electricity to the larger part of mainland
Tanzania, and supplies bulk power to Zanzibar, there are some small generators distributing power in limited
areas.
Independent power producers (IPPs) are emerging:

Songas (link) 18%; and Artumas/others 4%.

The 100 MW contract previously administrated by Independent Power Tanzania Ltd, a Malaysian firm, is in
jeopardy after a forced liquidation order was issued by the Tanzanian High Court in 2011, following persistent
corruption allegations.
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OTHER
African Development Bank (AfDB) (link)

Has several projects in Tanzania. Projects are related to, for example, infrastructure development and
governance. AfDB field office is in Dar Es Salaam. The World Bank has 24 active projects in Tanzania and a
country office in the capital.
The Energy and Environment Partnership (EEP)

Programme is active in Tanzania. Several projects are under implementation and five new projects were
approved in 2012.
Nordic Development Fund (link)

Supports also projects in Tanzania.
Finnish development cooperation (link)

Tanzania is one of long term partners of Finnish development cooperation. Cooperation has focused on the
natural resources, local government reform, and the development of economic activities.

The cooperation includes projects with consultants, sector programmes and budget support. Finland has an
embassy in Dar es Salaam.
United Nations agencies are active in Tanzania:

UNDP has an office in Dar es Salaam. UNDP focuses on pro-poor policy development and wealth creation,
democratic governance, environment and energy, HIV / AIDS and gender, and crisis prevention and recovery.

Global Environment Facility has several projects in Tanzania.
Clean Development Mechanism (CDM) (link) projects

Tanzanian government is promoting CDM projects and the Designated National Authority for CDM is VicePresident’s Office, Division of Environment. Tanzania CDM guide for investors provides a list of the approved
interim CDM projects that can apply in Tanzania. Similar to other African countries, Tanzania lacks capacity to
utilize the complicated CDM process. There is one registered project in Tanzania and two are under
evaluation. Tanzania participates in UNDP’s CDM capacity building programme CD4CDM (link)
The Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) (link)

Has offices in all 21 regions. TCCIA offers commercial services, business support and information.
There are many NGOs in Tanzania. The Ministry of Community Development, Gender and Children provides National
NGO Coordination (link). The website has lists of NGOs according to their line of action. There are some eighty
environmental NGOs listed.
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4.2 SOURCES OF INFORMATION, REFERENCES & LINKS
Tanzania Renewable Energy
Association
Promoting sustainable development of RE in
Tanzania. Non-profit, non-governmental
Business
Link
The Tanzania Chamber of
Commerce, Industry and
Agriculture
Trade
Business
Link
Energy access
Business success stories
Business
Link
Tanzania Trade Statistics
EU
EU – Tanzania trade overview
Economy
Link
Tanzania Economic Update
World Bank
Economy, labour force and education
in Cameroon
Economy
Link
International Monetary Fund
Economy
Link
OECD
Economy
Link
Education
Link
University of Dar es Salaam
Education
Link
Country Profile
Finpro
General
Link
Country Profile
Rabobank
General
Link
Tanzania at a Glance
World Bank
General
Link
Country Profile
CIA
General
Link
Country Report
Economic Intelligence Unit
Country report
General
Link
The Energy and Environment
Partnership Africa
Project funding
General
Link
The Ministry of Community
Development, Gender and
Children
NGO coordination
General
Link
Government
Link
Government
Link
Infrastructure
Link
Infrastructure
Link
United Nations
Society
Link
United Nations
Society
Link
Business
Link
HE Financing in East and Southern
Africa
Johnson
Inshengoma
Herana Gateway
African higher education research
Government
Tanzania Country Specific
Information
US Department of State
Tanzania's Infrastructure A
Continental Perspective
World Bank
Tanesco
International travel information
Generation, transmission and distribution of
electricity
International Tax
Deloitte
Taxation highlights in Tanzania 2012
Country Energy Information
Developing Renewables
Business
Link
Doing Business
World Bank
Business
Link
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Economic Outlook
AfDB, UN, OECD
Economy
Link
Country Risk Classification
Finnvera
Economy
Link
Corruption Perceptions Index
Transparency International
Society
Link
Country BTI Transformation Level
BTI Group
Economy
Link
International Energy Association
General
Link
International Renewable Energy
Agency (IRENA)
General
Link
Country profile, energy maps, tools, programs,
organizations & institutions
General
Link
Clean energy info portal
General
Link
Government
Link
Environmental
Governance
Link
Environmental
Governance
Link
Renewable Energy Country Profiles
Open Energy Info
Country Energy Profile &
Information
Reegle
Renewable Energies in Africa
European Commission, Joint
Research Centre
Global Environment Facility
BTI analyzes and evaluates the quality of
democracy, a market economy and political mgmt.
in 128 developing and transition countries
The GEF unites 182 countries in partnership with
intl. institutions, civil society organizations, and
the private sector to address global env. issues
United Nations Framework
Convention on Climate Change
Clean Development Mechanism
The Energy and Environment
Partnership Africa
Project funding
Business
Link
MBendi
Economy, Risks, Industry, Business, Energy and a
lot of other information
Business
Link
African Development Bank
(AfDB)
Contains structured and analysed information on
economic, political and social status
General
Link
Directory of Development
Organizations
Contains list of development organizations in the
country
Society
Link
United Nations Development
Programme (UNDP)
Un-political information on country's status on
environmental, social and financial situation
General
Link
Communicaid
Communicaid is a culture and communication
skills consultancy. They enable their clients to
create profitable international relationships by
building cultural bridges that enhance
understanding and establish trust.
Society
Link
Oil and Gas Profile
A Barrel Full
Business
Link
The National Energy Policy 2003
The Ministry of Energy and
Minerals
Government
Link
Tanzania Electricity TANESCO
Monopoly Ending
Tanzania Invest article
Business
Link
The Rural Energy Act 2005
The Government of Tanzania
Government
Link
Tanzania Renewable Tariffs 2010
Alliance for Renewable Energy
General
Link
Growlings (UK)
Business
Link
Business
Link
Business
Link
General
Link
Renewable Energy Feed-in-Tariffs
Andrew Gray
Eastern Africa Power Pool (EAPP)
Southern African Power Pool
(SAPP)
Renewable Energy Technologies in
Tanzania Biomass based
cogeneration
Gwnag'Ombe
2009
Membership of EAPP comprises public utilities,
companies in charge of power generation,
transmission and/or distribution in Eastern Africa
The members of SAPP have created common
power grid between their countries and a common
market for electricity. SAPP was founded in 1995
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TANZANIA report
Visions, Scenarios and Action Plans
Towards Next Generation Tanzania
Power System
Rural Energy Agency and
Innovation in Delivery of Modern
Energy Services to Rural Areas
Kihwle, Hur,
Kyaruzi
MDPI Journal
General
Link
Justina Uisso
Rural Energy Agency
General
Link
The Tanzania Petroleum
Development Corporation (TPDC)
Business
Link
Cooperation Project
Business
Link
Status Report
General
Link
Rural Energy Agency
Government
Link
National Environment
Management Council - Tanzania
Environmental
Governance
Link
Energy and Water Utilities
Regulatory Authority
Government
Link
Songas generates electricity using gas from the
Songo Songo Island gas fields, off the coast of
southern Tanzania
Business
Link
Paper presented at the 26th annual conference of
International Association for Impact Assessment
Environmental
Governance
Link
Published: 2011, Vol 5 (2), pp 126-130
Environmental
Governance
Tanzania: Geothermal Energy as an
Alternative Energy Source for
Tanzania
Geothermal Exploration in Tanzania
The Federal Institute for
Geosciences and Natural
Resources (BGR)
Taramaeli
Mnjokava
Songas
Comparing EIA procedures in KEN,
TAN, MOZ and EU
Rebelo, Guerreiro
Governance challenges in
Tanzania's environmental impact
assessment practice
Sosovele, Hussein
African Journal of Environmental
Science and Technology
Energy Systems: Vulnerability Adaptation - Resilience (VAR) 2009
Damian Casmiri
Helio
General
Link
African Energy
Supplying solar, wind and power backup
equipment on a wholesale basis
Business
Link
Alternative Energy Africa
Information portal about alternative energy in
Africa
Business
Link
Inforse-Africa
International network for sustainable energy
Business
Link
Business
Link
Business
Link
Business
Link
Business
Link
Cleantech Knowledge Hub
Business
Link
The World Council for Renewable
Energy
Business
Link
International Network for
Sustainable Energy
Business
Link
African Wind Energy Association
Renewable Energy World
Conferences & Expo in Africa
Renewable Energy Africa
How We Made It in Africa
Insight into business in Africa
Herana Gateway
African higher education research
Education
Link
African Rural Energy Enterprise
Development
Community-based organization developing a
strategy for improved access to energy
Government
Link
African Center for Economic
Transformation
An economic policy institute supporting the longterm growth with transformation of African
economies
Government
Link
Nordic Development Fund
Project funding
Business
Link
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Africa and Europe in Partnership
The Foundation for the
Development of Africa
Non-profit organization supporting sustainable
development
European Biomass Industry
Association
Government
Link
Government
Link
Business
Link
Global Network on Energy for
Sustainable Development
GNESD is a knowledge network facilitated by UN
Environmental Programme
Government
Link
Global Village Energy Partnership
GVEP works with local businesses in developing
countries to increase access to modern energy
Business
Link
World Resources Institute
WRI works with governments, companies, and civil
society to build solutions to urgent env. Changes
Government
Link
Economy
Link
The World Bank