Press release: New partnership seeks to expand productive use of energy in rural Tanzania

Small and medium enterprises will benefit from a new partnership aimed at promoting productive uses of energy in Tanzania’s rural areas. 

This follows the launch of a new initiative dubbed Rural Electrification Densification Programme (REDP) by Energy 4 Impact, Multiconsult and the Rural Energy Agency (REA). The initiative is implemented by REA with financing from the Norwegian Government through the Norwegian Embassy in Dar es Salaam with the objective of extending the national grid to rural areas in Tanzania. 

Multiconsult, a leading engineering consultancy company in Norway acts as REA’s Technical Assistance Consultant for the new partnership. The Norwegian firm has contracted Energy 4 Impact to collaborate on the programme component that focuses on promoting productive use of energy (PUE) in the areas that will be electrified through the REDP.

Energy 4 Impact's role will be to stimulate productive use of electricity through empowering local entrepreneurs in the villages of Tanga and Pwani in south-eastern Tanzania. This will enable the rural population to benefit fully from the expansion of the national power grid. 

“This is an exciting enterprise-centred initiative, which will provide business development services to local business owners to enable them to undertake value adding activities and invest in income-generating equipment such as wood workshop tools, fish drying, welding, oil pressing and milling machines, as well as some smaller appliances such as fridges, juice blenders, hair clippers, hair dryers, fryers,” says Adam Mbwambo, Energy 4 Impact’s Tanzania Country Manager. 

A range of suitable financing options will be explored, including leveraging existing local (informal and formal) financial institutions, commercial banks, microfinance institutions, as well as supplier credit or asset finance to enable entrepreneurs to acquire such appliances. Ultimately the programme is expected to stimulate economic growth and increase livelihoods, income and employment opportunities in the region. 

Productive use of energy is an area that has experienced significant growth in recent years with Energy 4 Impact implementing several projects in different countries. The organisation has extensive, practical experience of PUE, with a particularly strong track record in East Africa, with a focus on several facets of key actors, such as sellers of power, the PUE enterprises, suppliers of PUE appliances and local financial institutions.

  

Energy 4 Impact is a non-profit organisation that supports local businesses that provide energy access to off-grid communities in Africa. The organisation supports the growth and development of enterprises serving the off-grid energy market by addressing challenges relating to developing appropriate technologies; building effective product distribution channels; proving and adapting business models and accessing finance.


Rural Energy Agency (REA) is the Government of Tanzania’s dedicated institution to promote and facilitate access to modern energy services in the rural areas of Mainland Tanzania. Among other activities, REA supports electrification through connections for households, businesses, public facilities, and social service establishments to be supplied with electricity from the established national or isolated grids (“on-grid electrification”).

Multiconsult is one of Norway’s leading engineering consultancy companies. With roots going back to early 20th century, the company has played an important role in Norway’s development and economic growth. Multiconsult promotes growth in renewable energy in Sub-Saharan Africa and South-East Asia through providing specialized services within Sustainable hydropower, Solar energy and other renewables, Clean energy finance, Environmental, social, and economic assessments to Renewable energy project developers, Government institutions, and International agencies, Development banks, and financial institutions. 

 

 

Source: https://www.energy4impact.org/news/new-partnership-seeks-expand-productive-use-energy-rural-tanzania

 

 

 

 

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