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Triangular Development

India and the US fuel energy infrastructure in Tanzania

by Blitz India Media
September 10, 2024
in Tanzania
Triangular Development
Sukumar Sah

The United States, India, and Tanzania have established a Triangular Development Partnership to enhance energy infrastructure and advance renewable energy in Tanzania. The innovative clean energy alliance is the firstof-its-kind in Africa. Implemented by The Asia Foundation, a US-based non-profit, the partnership will utilise the strengths of each country to improve Tanzania’s energy grid, regulatory frameworks, regional interconnections, and to develop large-scale solar projects.

The US Agency for International Development (USAID) is collaborating with Indian institutions such as Grid Controller of India Limited and NTPC School of Business to involve Tanzanian policymakers, regulators, utilities, academics, and the private sector. The goal is to boost renewable energy usage and encourage climate-smart investments in Tanzania.

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Tanzania electrification

The US remains a key partner in accelerating electrification in Tanzania, aiming to provide clean and reliable energy to communities nationwide. Since the launch of USAID’s Power Africa programme in 2013, Tanzania has made significant progress, increasing energy connections from approximately 1.2 million to over 4.5 million by 2023.

Alexander Klaits, Acting Mission Director for USAID in Tanzania, stated, “We are excited to enter this important new partnership with India, which will broaden our energy collaboration with Tanzania. This effort will enhance local capacity and create new trade opportunities for American businesses. We are proud to work with India to support Tanzania’s growth as a regional energy exporter in East Africa.”

Manoj Verma, Chargé d’Affaires at the Indian High Commission, remarked, “It is a point of pride that the first India-US Triangular Cooperation in Africa is happening in Tanzania. This partnership highlights the strong strategic bond between Tanzania and India. By focusing on renewable energy and grid management, this initiative will support Tanzania as it completes key energy projects and integrates its grid with neighbouring countries. We believe this partnership will significantly leverage India’s experience in renewable energy to improve Tanzanians’ lives sustainably.”

Dr James Peter Mataragio, Deputy Permanent Secretary of the Tanzanian Ministry of Energy, expressed enthusiasm for the collaboration, noting, “This partnership is very exciting for Tanzania. We will greatly benefit from the US and India’s expertise in developing solar and wind energy. Together, we can accelerate the growth of renewable energy and strengthen our energy grid.”

Railway project

The US is also set to expand the Lobito Corridor – a railway project that runs from Angola to Zambia through the Democratic Republic of the Congo (DRC) – all the way to the Indian Ocean through Tanzania. The railway would connect African countries to global markets and enhance regional trade and economic growth..

According to Helaina Matza, the US acting special coordinator for the Partnership for Global Infrastructure and Investment, the focus is on “relaunching our partnership with the DRC and engaging with the Tanzanian Government and private sector on next steps towards extending the economic corridor to the Indian Ocean.

Erastus Mwencha, former Deputy Chairperson of the African Union Commission, said transport systems like the Lobito Corridor can help improve trade among African countries.

“One of the reasons intraAfrica trade is low is because of poor transport networks,” Mwencha said, adding that goods can sometimes be brought from Europe to Africa at more competitive rates than goods being moved from one African country to another.

Colonial biz model

But Mwencha is worried that the ports and railways used to export Africa’s raw material remain largely the same as they were during colonial times, and that Africa is also still operating on a colonial-era business model.

Studies show that a poor transportation network in Africa adds 30 per cent to 40 per cent to the cost of goods traded among African countries, hampering the development of the private sector.

The Lobito project would benefit not only the US but also African countries and would facilitate business on the continent. In addition to refurbishing the existing lines, the project envisions adding 1,300 kilometres of railway from Zambia to Tanzania.

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