Tanzania launches electricity connection financing scheme

Tanzanian Vice-President Deogratius Ndejembi has launched the LastMile Connection Financing Scheme, a partnership between the Tanzania Electric Supply Company (TANESCO) and CRDB Bank. The initiative aims to provide electricity connections through credit options, similar to mobile network loans, to assist citizens facing financial constraints.

A key focus of the scheme is addressing disparities in peri-urban areas. Ndejembi noted that some residents living in areas with rural settlement patterns are often charged 320,000/- for connections due to urban administrative classifications, whereas rural residents pay only 27,000/-. He directed TANESCO to ensure these peri-urban residents receive the lower 27,000/- rate to align with national energy goals and the ‘mission 300’ objective.

The Vice-President ordered the immediate commencement of a five-district pilot program and the establishment of monitoring mechanisms to track the target of 100,000 new connections annually. He emphasized that energy generated from projects like the Julius Nyerere Hydropower Project must effectively reach end-users in homes, factories, and hospitals.