Tanzania defends plan to buy electricity from Ethiopia

Dar es Salaam. The government has defended its decision to purchase electricity from Ethiopia, saying it is a cost-effective move rather than a result of power generation shortfalls.

Energy permanent secretary Felchesmi Mramba said the decision would benefit the country by reducing electricity costs, as some local sources generate power at higher prices than the tariff agreed upon with Ethiopia.

“Electricity from Ethiopia will cost 0.077 US cents (Sh202.3) per unit, which is cheaper than from some of our domestic sources. This makes economic sense,” Mr Mramba told reporters on Monday.

He clarified that Tanzania will only purchase 100 megawatts (MW) from Ethiopia.

President Samia Suluhu Hassan recently disclosed that the government was in the final stages of signing an agreement to import power from Ethiopia. Speaking at a public rally in Kilimanjaro Region, she said the move was aimed at ensuring a reliable power supply for the northern regions.

“Our government is taking steps to buy electricity specifically for these northern regions so that they can have power 24/7 without interruptions,” she said.

Her remarks sparked debate on social media, with some questioning the need for power imports given the significant investment in the 2,115-MW Julius Nyerere Hydropower Project. In response, government officials reiterated that the move is financially viable and aligns with global electricity trade practices.

Mr Mramba explained that power transmission to northern Tanzania currently results in a loss of about 17MW, equivalent to the entire electricity demand of Songwe Region.

“Even the power we will receive from Ethiopia will experience some loss, but that is not our concern. We are buying it at the Namanga border, and distribution will be our responsibility,” he said.

Energy experts have backed the move, citing the efficiency of Ethiopia’s transmission infrastructure. Dr Avit Mushi, an electrical engineering lecturer at the University of Dar es Salaam (UDSM), said long-distance transmission leads to power losses of 15 percent–20 percent, making regional purchases a viable option.

“Our counterparts in Ethiopia have advanced transmission systems that limit power losses to about 5 percent, which is much better for business,” Dr Mushi noted.

Former ACT-Wazalendo party leader Mr Zitto Kabwe also defended the decision, stating that international electricity trade does not involve physically transporting power from one country to another.

“In global electricity trade, power from one country is fed into a shared grid, and recipient countries withdraw equivalent amounts from their own connections,” he explained.

He urged the government to clarify where Tanzania’s surplus power is being sold, questioning whether the country is a net exporter or net importer.

Responding to this, Mr Mramba affirmed that Tanzania remains a net power exporter, selling more electricity than it imports. He noted that Zambia has expressed interest in purchasing 600MW from Tanzania, while a mining company in Zambia has requested 1,000MW.

Currently, Tanzania generates 3,796MW of electricity, while domestic consumption stands at 2,200MW. The national grid requires 1,902MW, and the government believes the Ethiopian deal will further stabilise power supply in the northern regions, including Arusha, Kilimanjaro, Tanga, Manyara, Mara, and Mwanza.

“The additional supply will enhance grid stability, preventing disruptions that can affect other regions,” Mr Mramba said.