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| Elias Ngunangwa, Head of Client Coverage for Corporate and Investment Banking at Stanbic Bank Tanzania. |
Dar es Salaam, Tanzania — Tanzania is accelerating investments in energy infrastructure to advance its industrialization goals and position itself as East Africa’s next manufacturing hub.
Reliable and affordable electricity remains at the heart of the country’s economic strategy. By expanding and diversifying its energy sources, Tanzania is building a foundation for sustainable industrial growth and long-term competitiveness.
“Energy infrastructure is often the first commitment in the industrial value chain because it drives everything else forward,” says Elias Ngunangwa, Head of Client Coverage for Corporate and Investment Banking at Stanbic Bank Tanzania. “Once that commitment is right, it opens the door for progress in production and job creation.”
Energy Policy Anchored on Industrial Ambition
The National Energy Policy of 2015 placed infrastructure development at the core of Tanzania’s industrialization agenda. Hydropower currently contributes about 60% of national electricity generation, but dependence on rainfall has underscored the need for a more diversified energy mix. This has prompted the government to expand renewable energy projects and maximize the use of natural gas reserves to ensure stability.
“Tanzania is blessed with vast natural gas reserves, including those in Songo Songo, strengthening its position as a regional energy leader,” explains Ngunangwa. “Gas provides a reliable source of power for industries and supports the country’s industrialization goals.”
Today, natural gas powers more than 45 large industries in Dar es Salaam, ensuring steady energy supply for sectors such as cement, steel, and textiles. These developments not only enhance Tanzania’s energy security but also boost its competitiveness in regional trade.
Regional Integration and Energy Trade
Tanzania is also advancing cross-border energy cooperation as part of the East African Power Pool (EAPP). The country already exports surplus electricity to neighboring states during shortages — a move that strengthens regional stability and economic integration.
Financing Innovation Driving Growth
As energy infrastructure expands, innovative financing has become essential. Stanbic Bank Tanzania continues to play a leading role in structuring tailored financial solutions to support large-scale energy and industrial projects.
“We go beyond traditional lending,” notes Ngunangwa. “We design financial solutions that match the unique needs of Tanzania’s energy sector while supporting investors through capacity-building programs that deepen their market understanding.”
Alternative financing models such as green bonds and public-private partnerships (PPPs) have gained momentum, accelerating the implementation of power generation and transmission projects. According to David Kafulila, Executive Director of the Public Private Partnership Center under the Ministry of Finance, PPPs enable the government to leverage private capital and technical expertise while reducing dependency on loans and tax revenues.
“These partnerships fast-track the delivery of critical infrastructure, which is essential for industrial growth,” Kafulila explains.
Building Long-Term Partnerships
Stanbic Bank’s approach focuses on fostering long-term relationships across the value chain, ensuring sustainable collaboration in key sectors driving Tanzania’s growth.
“We build relationships by understanding our clients, gathering insights, and transforming that knowledge into value,” emphasizes Ngunangwa.
Powering the Future of Industry
Through sustainable investment, energy diversification, and strategic collaboration, Tanzania is laying a strong foundation for industrial transformation. With reliable power and innovative partnerships fueling progress, the country is steadily positioning itself as a leading energy and manufacturing hub in East Africa.
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