Africa has 60% of the world's solar potential, but only 3% of global solar capacity is installed on the continent. While countries such as South Africa and Kenya are already investing in renewable energies, Tanzania is still at the beginning of a comprehensive energy transition. With an electrification rate of only 40 % and a rapidly growing energy demand, the country offers enormous opportunities for companies, investors and political players.
Africa Swiss sees Tanzania as a strategic starting point for promoting sustainable energy projects in Africa. The conditions here are ideal: the government is committed to renewable energies, there are massive untapped resources and the market is growing rapidly. What works in Tanzania can serve as a model for many other African countries.
Africa's energy potential - a billion-euro market in development
- Solar energy - Africa has some of the world's best solar locations, including regions in Tanzania, Namibia and Egypt with irradiation values of 4.5-6.5 kWh/m² per day. Decentralized solar systems are the fastest and most efficient solution to supply rural regions with electricity.
- Hydropower - In East and Central Africa, rivers such as the Congo and Rufiji could supply huge amounts of energy. In Tanzania, 36% of energy already comes from hydropower, but climate change makes diversification urgently necessary.
- Wind energy - Coastal regions, the Rift Valley and parts of North Africa offer wind speeds of 6-8 m/s, ideal for economically viable wind farms. Projects in Tanzania could show how wind power works as a stable component of the energy mix.
- Geothermal energy - The East African Rift Valley has enormous geothermal potential. In Tanzania alone, there are over 15 developed sites with an estimated capacity of 650 MW that have hardly been exploited to date.
Tanzania as a test market - challenges and opportunities for investors
- Growing energy demand & political support - The electrification rate in Tanzania is set to rise to 75% by 2030. The government is promoting renewable energies with tax breaks and international financing programs.
- Lack of infrastructure & off-grid solutions - The national power grid is unstable or non-existent in many places. Decentralized energy projects - especially solar and wind - offer the most efficient solution.
- Attractive investment conditions - Tanzania offers companies duty exemptions on solar modules and wind turbines as well as credit models through the World Bank and the African Development Bank.
- Swiss technologies are key - Swiss companies are global leaders in storage technologies, grid integration and energy efficiency. Africa Swiss is bringing these innovations to African markets to create solutions that are sustainable in the long term.
From Tanzania to the whole of Africa - a model for the future
The expansion of renewable energies not only brings economic benefits, but also has a direct impact on the everyday lives of people in Africa. A stable, sustainable energy supply changes lives in many ways:
- More economic stability - companies can work more efficiently, production costs fall, new industries emerge.
- Better healthcare - Hospitals and health stations can use modern equipment and store medicines safely thanks to reliable power sources.
- Stronger education systems - schools and universities benefit from digital learning and better teaching methods that would not be possible without energy.
- Sustainable agriculture - Irrigation systems, food storage and processing are energy-intensive processes that become more cost-efficient with renewable energy.
- Reduced environmental impact - Replacing diesel generators and fossil fuels with renewable energy reduces emissions and improves air quality in cities and rural areas.
Africa Swiss - Your partner for sustainable energy projects
Africa Swiss combines expertise with local knowledge to involve investors, companies and political actors in sustainable energy projects. Our aim is to create concrete solutions for energy supply in Tanzania and beyond - with a long-term, economically viable approach.
Now is the right time to invest in renewable energies. Those who act early not only secure economic benefits, but also make a decisive contribution to Africa's sustainable development.