Africa50 targets growth of investment portfolio in Tanzania

In August, Dar es Salaam will host Africa50's general shareholders meeting, with Tanzania seeking the pan-African infrastructure platform's expertise to expedite priority projects. Tanzania became Africa50's 34th shareholder in 2023 and is collaborating closely with the platform to develop a pipeline of bankable infrastructure projects that align with its national development plan.

Key focus areas include power transmission lines, off-grid renewable energy, clean-energy transition initiatives, and transport and logistics infrastructure. Discussions are underway with Tanzania Electric Supply Company (TANESCO) on a high-voltage transmission line project through a public-private partnership, which will modernize the country's transmission network and absorb additional capacity from newly constructed renewable power plants.

Negotiations are also progressing with Tanzania's government for a $100 million mini liquefied natural gas (LNG) project in partnership with Egypt's Rosetta Energy Solutions. This project will enhance Tanzania's gas distribution network through modular and movable LNG units, extending energy access to remote areas at a lower cost than conventional delivery methods.

Tanzania's large portfolio of transport and energy assets, such as port terminals and power facilities, makes it a prime candidate for Africa50's asset recycling initiative. This allows governments to monetize mature infrastructure assets by leasing them out to private concessionaires while governments receive payment or a share of revenues. Tanzania's assets are being assessed for recycling, with feasibility studies and valuation evaluations underway, with pilot transactions expected by 2027 or 2028.