Tanzania's Tanesco is in talks with a Zambian firm to export electricity to Zambia and potentially other countries in a deal that will reportedly offer a premium rate that exceeds the current cost of importing power from Ethiopia. The export volume is expected to rapidly recoup the costs of the Julius Nyerere Hydroelectric Project within four years, subject to regulatory approval.
This trade pact strengthens Tanzania-Zambia ties and marks a private-sector breakthrough in the region, facilitated by the Zambian-Tanzanian consortium, Kanona Power Limited.
Tanesco's business development manager, Magoti Mtani, expressed hope that this trade will increase revenue for efficient operations, noting discussions with Zambia's Kanona Electric Company to explore expanded electricity trading.
The meeting was a preliminary step towards finalizing the electricity trade agreement, expected to be signed soon, which will facilitate electricity access and contribute to economic growth in African countries, Kanona Electric Company's Head of Business, Nsofwa Sikanika, stated as quoted by the media.
As a member of the Eastern Africa Power Pool and the Southern African Power Pool, Tanzania is well-positioned to benefit from trading electricity with other African nations.