Dr Evans Rweikiza Executive Director Tanzania Private Sector Foundation April 2010

OVERVIEW OF LIGHTING IN TANZANIA According to the World Bank; Grid connection is notoriously poor throughout Africa Tanzania has one of the lowest rates of electrification in the world Only 10% of the population has access to the electricity grid, and in rural areas only 2% have access

OVERVIEW Not everyone in that community has power at their house even if the grid passes through it Connections to the grid are expensive and the waiting list for the utility to make the connection is long It is obvious that many people in Tanzania lack access to a functioning electricity and they keep relaying on other sources of fuel for lighting, cooking, communication, etc.

LOW RATE OF ELECTRIFICATION & ITS IMPACTS Increased use of fossils fuel sources to generate electricity such as diesel/petrol generators; Contributing to global warming due to high carbon emission, deforestation, etc Increased poverty as the costs for such fuel are high, prevalence of illnesses due to inhalation of the hazard smoke, increased production costs for the industry sector Under development of private sectors in rural settings – there is lack of serious investment in rural energy sector in any part of our country

IMPROVING ELECTRIFICATION IN TANZANIA The need to have a scheme guarantee appropriate power source to reduce household expenditures on lighting while providing improved quality, enhanced durability, clean, safe, easy to access products and services. Effective alternative energy sources for generating electricity; Wind Solar energy Natural gas Biomass Small-scale hydropower Geothermal energy

SOCIO-ECONOMIC BENEFITS OF ELECTRIFICATION Job creation through foreign investment in energy- intensive manufacturing New employment opportunities Small business development, for example, in shops and hair salons Change of lifestyle, for example: access to refrigeration, extended working hours and access to communications and other modern technology

SOCIO-ECONOMIC BENEFITS……. Improved security Improved education levels Rural development Higher GDP Reduced local air pollution levels, through reduced wood burning Major health benefits through fewer paraffin burns and poisoning, as well as vaccine refrigeration, water pasteurization and a decrease in respiratory disease

PPP FOR IMPROVING ELECTRIFICATION IN THE COUNTRY Tanzania Private sector Foundation is recognises the efforts made by Rural Energy Agency by opening and coming up with an innovative approach that could help individual entrepreneurs to participates and invest in Rural Energy sector. For the success of this initiatives the Public Private Partnership need to be observed at every stage of implementation

PPP FOR IMPROVING ELECTRIFICATION Identification of national companies that could be interested in the rural electrification programme need to be done Implementation of awareness raising and promotional actions in order to inform these companies of all the new business and investment opportunities arising Empowering local entrepreneurs and communities with technical and financial resources for them to lead to establish and operate sustainable community-based energy companies Govt should provide grant to private sector wishing to invest in rural areas where there is limited financial benefits

TPSF Experience in Business Plan Competition TPSF is recommending this approach as through business plan competition individual business idea that are doable could be conceived for funding TPSF had run similar competition and the positive result has been realized in the first round where about 3.3 billion were awarded to entrepreneurs through out the country

CONCLUSION The shortage of energy in rural settings posses a major road block in the development of private sector which drives the economy of this country The cost of doing business has increased to an alarming rate where the consumers bares a lot of cost and automatically this reduce the purchasing power. Unless the government is investing heavily in the rural energy then the sustainable economic development will be a reality

CONCLUSION TPSF recognizes investments happening in the energy sector which is crucial for private sector development TPSF call up on development of policy/guideline to ensure fully participation of private sector in this initiative

THANK YOU!