Tanesco, a Tanzanian state-owned utility, has been engaged in preliminary negotiations with Kanona Power Limited, a Zambian-Tanzanian consortium, to export electricity to Zambia and potentially other neighboring countries.
Following the commencement of operation of the 2.1 GW Julius Nyerere Hydropower Project (JNHPP), increasing Tanzania’s electricity generation capacity to 3.4 GW which exceeds domestic demand and in turn creating an opportunity for exports.
The Status & Progress
Tanzania’s Tanesco is in talks with a Zambian firm to export electricity to Zambia and other countries, local media reports. The deal will reportedly offer a premium rate that exceeds the current cost of importing power from Ethiopia.
The proposed deal aims to set a premium export rate higher than the cost Tanesco currently incurs to import power from Ethiopia, which is estimated at around 7.78 US cents per KWh. Analysts suggest that this trade (export volume) is expected to recoup Tanzania’s investment cost in the JNHPP within four to five years, generating foreign exchange earnings and strengthening its position as a regional energy supplier.
The negotiations are set for regulatory approval as Kanona Electric Company’s Head of Business, Miss Msofwa Sikanika, said, on 20th March 2025, “We are in talks with Tanesco, and this being the 3rd round of talks. We hope that an agreement will be signed in a few weeks to come”.
Preliminary Transmission Route
The electricity trade is expected to be facilitated through new transmission infrastructure, such as the 400kV transmission line linking Sumbawanga in Tanzania to Zambia, which supports regional power pool integrations like the Southern African Power Pool (SAPP) and the Eastern Africa Power Pool (EAPP).
The trade will strengthen Tanzania-Zambia ties and mark a private-sector breakthrough in the region, facilitated by the Zambian-Tanzanian consortium, Kanona Power Limited.
As a member of the EAPP and the SAPP, Tanzania is well-positioned to benefit from trading electricity with other African nations. Challenges with regulatory hurdles, infrastructure readiness, and market conditions are set to influence the final outcome of the project.
