Tanzania’s government plans to sell 49% of shares in the state-owned power utility company, Tanzania Electric Supply Company (Tanesco), to the public this year, while retaining a controlling stake, AllAfrica reported.
Energy and Minerals Minister, Sospeter Muhongo, told the EastAfrican newspaper that the state would split Tanesco’s assets into separate generation, transmission, and distribution units for the sale.
The government will also invest $1.2b in the company over 10 years, boosting efforts to increase electricity production to 10,000MW by 2025, up from the current 1,400MW.
Meanwhile, Tanesco recorded a loss of over $63.978m (Sh200m) in 2015, believed to be inflicted mainly by illegal connections of power supply and evasion of power payments, occurring in the Arusha region alone, officials have said, according to an additional report by AllAfrica.
Business owners told President John Magufuli at a meeting last month that inadequate and unreliable power supply had been increasing their production costs and frustrating their operations. Magufuli was elected in October 2015 with pledges to boost power output in order to expand industrial capacity, Mail Guardian Africa explained.