TANZANIA’S government plans to sell shares in the state-owned power utility to the public this year and split it into separate generation, transmission and distribution units, Energy and Mining Minister Sospeter Muhongo said.
The state will offer as much as 49% of Tanzania Electric Supply Co., or Tanesco, while the government will retain a controlling stake, Muhungo said in an interview published in the Nairobi-based East African newspaper.
The government will also invest $1.2 billion in the company over 10 years, boosting efforts to increase electricity production to 10,000 megawatts by 2025 from 1,400 megawatts, Muhongo said.
Business owners in Africa’s third-biggest gold producer told President John Magufuli at a meeting last month that inadequate and unreliable power supply is increasing production costs and frustrating their operations, The East African reported. Magufuli was elected in October with pledges to boost power output in order to expand industrial capacity.