Rufiji Hydropower project could be a game changer for Tanzania, here’s why

Tanzania's ambitious Rufiji Hydropower Project, aimed at addressing the country's power shortage, has recently been launched by President John Magufuli. The project, which has been awarded to the JV Arab Contractors Company and Elsewedy Electric Company, is set to inject 2,115 megawatts into Tanzania's national grid by 2022, more than doubling the current capacity. Despite some concerns regarding its impact on the environment, particularly the Celis Game Reserve, experts remain optimistic about the project's potential benefits for Tanzania's economy. Kamanga Kapinga of KW Kapinga & Partners recently discussed the key aspects of the Rufiji Hydropower Project on CNBC Africa. Kapinga highlighted the government's commitment to the project, with an investment of one trillion shillings, approximately $600 million, already allocated. He emphasized that the completion deadline of 2022 is achievable, despite speculation suggesting a longer construction period. Kapinga also dismissed claims of potential UNESCO delisting of the Celis Game Reserve due to the project's minimal impact on the reserve. The interconnected grids of Tanzania, Kenya, Uganda, and Zambia will benefit from the increased electricity supply, supporting the region's economic and industrial growth. Tanzania's goal of reaching 10,000 megawatts by 2025 aligns with the project's objectives, signaling a significant step towards ensuring energy security and promoting industrialization. In terms of economic impact, the project is expected to create job opportunities across various sectors, from skilled labor to tourism-related industries. Not only will the project boost employment in the region, but it will also stimulate investment in infrastructure development, such as new roads and tourism facilities. Additionally, the project's potential to position Tanzania as a hub for electric cables and transformers signifies a broader economic diversification strategy. As the Rufiji Hydropower Project progresses, stakeholders are closely monitoring its development and anticipating the long-term benefits it will bring to Tanzania's economy and energy sector. With the government's steadfast support and private sector investments driving the project forward, Tanzania is poised for substantial economic growth and increased energy stability in the coming years.