The UK Government is to provide £30 million for rural energy projects in Tanzania in the next five years.
According to the Rural Energy Agency (REA), an autonomous body under the Ministry of Energy and Minerals of Tanzania, the UK is providing the funding through its Department for International Development.
The main objective of the Rural Energy Fund is to increase access to “modern energy services” in rural areas of mainland Tanzania for sustainable, social and economic development as well as poverty alleviation.
The Swedish Government is also providing 600 million kroners (£48m).
“The objective of the arrangement is to improve donor co-ordination and harmonisation through delegated co-operation, thereby reducing the administrative burden of the United Republic of Tanzania and enhancing the efficiency of the donors’ development co-operation,” REA stated.
It added Tanzania’s rural power access rate is 21%.
The Government of Tanzania aims to develop and implement a new strategy to address the modern energy needs of more than 85% of people living in rural areas.