TANZANIA

1. GENERAL OPERATING ENVIRONMENT

2. ENERGY AND RENEWABLE ENERGY

3. ENVIRONMENTAL GOVERNANCE

4. ORGANIZATIONS, SOURCES, REFERENCES

TANZANIA report 2 (28)

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GENERAL OPERATING ENVIRONMENT

1.1 Basic Facts & Geography

1.2 People & Society

1.3 Culture & Business Culture

1.4 Infrastructure & Logistics

1.5 Government & Legislation

1.6 Economy

1.7 International Trade, Tanzania & Finland

1.8 Education

1.9 General Operating Environment - Summary

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1.1 BASIC FACTS & GEOGRAPHY Location Eastern Africa Area 947 300 km2 (94 % land, 6 % water)

Borders

West: Democratic Republic of Congo (459 km) North West: Burundi (451 km) North West: Rwanda (217 km) North: Uganda (396 km) North East: Kenya (769 km) East: Indian Ocean (1 424 km) South: Mozambique (756 km) South: Malawi (475 km) South West: Zambia (338 km)

Climate Tropical (coast), temperate (highlands) Terrain Coastal plains, central plateau, highlands in north & south Natural hazards Rainy season flooding, droughts, volcanic activity Source: CIA, World Bank, OECD

Tanzania is located in Eastern Africa. It is positioned on the Indian Ocean coast and its neighbouring countries

are DRC, Burundi, Rwanda, Uganda, Kenya, Mozambique, Malawi and Zambia (CIA)

After Tanganyika and Zanzibar gained independence from UK in 1961 resp. 1963, they merged to form

Tanzania in 1964 (CIA)

Tanzania has a tropical climate. In the highlands, temperatures range between 10 and 20 °C during cold and

hot seasons respectively. The rest of the country has temperatures rarely falling lower than 20 °C. The hottest

period extends between November and February while the coldest period occurs between May and August.

Annual temperature is 32 °C

Kilimanjaro is the highest point in Africa and one of only two mountains on the continent that has glaciers

(the other is Mount Kenya). There is also one active volcano in Tanzania, Ol Doinyo Lengai. On the central

plateau there are floods during the rainy season. Drought is a big problem causing deforestation and soil

degradation. The coast has a tropical climate and the terrain is plain. In the northern and southern highlands

the temperature is cooler. Tanzania has large lakes, Lake Victoria in the north, Lake Tanganyika in the west

and Lake Malawi in the south

There are three of the largest lakes on the continent: Lake Victoria (the world's second-largest freshwater

lake) in the north, Lake Tanganyika (the world's second deepest) in the west, and Lake Nyasa (Lake Malawi) in

the southwest parts

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1.2 PEOPLE & SOCIETY 2009 2010 2011 Population, total 43,52 mil. 44,84 mil. 46,22 mil. Population, growth 3 % 3 % 3 % Population, density 49/km2 51/km2 … Urban population 26 % 26 % 27 % Rural population 74 % 74 % 73 % Population (0-14 years) 45 % 45 % 45 % Population (15-64 years) 52 % 52 % 52 % Population (65 years and above) 3 % 3 % 3 % Life expectancy at birth 57 57 58

Major cities(2009) Dodoma - capital Dar es Salaam - (3,2 million) Mwanza (1,2 million)

Source: CIA, World Bank

Tanzania’s efforts to control corruption do not seem to have a lot of success, as corruption is still rampant.

Tanzania CPI is at the same level as Argentina and Indonesia (RABOBANK)

Poverty has declined only slightly over the last decade in Tanzania. Poverty remains widespread, with one in

three living below the poverty line (RABOBANK)

The fast-growing population, growing at 3 % a year increases the difficulty in fighting poverty and improving

public services. Nevertheless, the country has made progress in meeting Millennium Development Goals.

Child mortality has been reduced markedly, while also combatting diseases moves forward steadily

(RABOBANK)

1.3 CULTURE & BUSINESS CULTURE

Language Official: English, Swahili (de facto) Other: Arabic, many local languages

Ethnic groups Bantu (95 %) – more than 130 tribes Other African (4 %) Asian, European, Arab (1 %)

Religion Christian (30 %) Muslim (35 %) Indigenous beliefs (35 %)

Source: CIA, OECD

The Finnish Embassy in Dar es Salaam doesn’t recommend travelling to western Tanzania to the border areas

of Rwanda, Burundi or Democratic Republic of the Congo due to violent robberies that have happened in

those areas. There is a risk of international terrorism in both Tanzania and Zanzibar. One should avoid all

political or religious rallies. Armed robberies and credit card frauds are in the increase in the whole of the

country (FINPRO)

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In most ethnic groups in Tanzania, traditional norms still result in a strong division of labor between men and

women. On the whole, women also have a lower standard of living than men. Women employed in the work

place are still most commonly found in roles such as teaching and nursing (COMMUNICAID)

Both education and experience are important and respected qualities in Tanzania. It is important to pay

attention to others’ credentials and afford them respect. Foreigners tend to be held in high regard based on

their international expertise (COMMUNICAID)

1.4 INFRASTRUCTURE & LOGISTICS Railways: 3 700 km Roads: 91 000 km (total)

6 500 km (paved) 84 500 km (unpaved)

Ports: Dar es Salaam Zanzibar

Waterways: Lake Tanganyika Lake Victoria Lake Nyasa (Lake Malawi)

Airports: Total: 106 (11 paved, 95 unpaved) Zanzibar, Moshi, Dar es Salaam

Source: CIA, Logistics Cluster, EIU

Dar es Salaam is a major port in East Africa in the container sector. Dar es Salaam is a major port in terms of

tonnage and containers handled and, alongside Mombasa, is one of the key transhipment centres for the East

Africa region (AfDB)

Shipping in territorial and offshore waters in the Indian Ocean remain at risk for piracy and armed robbery

against ships, especially as Somali-based pirates extend their activities south; numerous commercial vessels

have been attacked and hijacked both at anchor and while underway; crews have been robbed and stores or

cargoes stolen (CIA)

Infrastructure is very old and not in an efficient use (FINPRO)

The length of the trunk network is adequate. Even if Tanzania’s road density indicators look relatively low by

some standards, the trunk network provides basic regional and national connectivity. It links the capital to

the coast as well as the international border crossings and the internal provincial capitals (AfDB)

Tanzania’s rail corridor is of strategic importance to the region (north-east and east-south (AfDB)

Tanzania stands out for allowing competition in its domestic air transport market. Tanzania allows

competition in its domestic air transport market and has more than one air transport provider. The only

other country permitting competition in its domestic air transport sector in the region is South Africa (AfDB)

The country has a poor infrastructure, with just 10% of the population having access to electricity

(RABOBANK)

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1.5 GOVERNMENT & LEGISLATION Official name United Republic of Tanzania Conventional short form Tanzania Form of state Federal presidential constitutional republic Regions and districts 26 main regions

Government President: Jakaya Kikwete (since 2005) National Assembly: 357 members Parties: Revolutionary Party

Legal system English common law Independence 1961-1964 (from UK) Corruption perception index (2011) 100 (out of 183 countries) Source: CIA, World Bank, Transparency International

Despite the broad political stability, anti-government sentiment is mounting, fuelled by a high unemployment

rate as well as public discontent with rising inflation, a weak shilling, power cuts and authorities’ oppressing

methods (RABOBANK)

Political tensions are increasing since the opposition is pushing for constitutional reforms. Political risks are

now considerable (FINPRO)

As of 2010 Tanzania was ranked Partly Free by Freedom House. The 2011 Democracy Index marked Tanzania

as a "hybrid regime", ranking it 90th

out of 167, an improvement from 92nd

the year before

1.6 ECONOMY World bank ranking Low Income Currency Tanzanian shilling (TZS)

2009 2010 2011 GDP (current US$) (billions) 21,37 bil. 22,92 bil. 23,71 bil. Structure of the economy (% of GDP)

- Agriculture - Industry - Services

29 % 28 % 27 % 24 % 25 % 27 % 47 % 47 % 46 %

GDP growth (annual %) 6 % 7 % 6 % GNI per capita, PPP (current intl.) $ 1350 $ 1430 $ 1510 Inflation, consumer prices (annual %) 12 % 6 % 13 %

Ease of doing business ranking 127

(out of 181) 131

(out of 178) 128

(out of 183) Source: CIA, World Bank, OECD

Like many other Sub-Saharan African countries, Tanzania is one of the poorest in the world in terms of GDP

per capita (FINPRO)

The inflation rate (consumer prices) has also been quite high recently, 12 % in 2009 followed by 6 % in 2010

and 12 % in 2011. Inflation is in the rise again due to steadily increasing food prices. (FINPRO)

Real GDP growth is now expected to slow as electricity shortages and poor rains restrict overall output. Poor

energy and transport infrastructure will keep growth below potential (EIU)

TANZANIA report 7 (28)

In 2011, East Africa was hit by its worst drought for 60 years. Tanzania experienced the consequences of the

drought in its power supply, which relies for more than half on hydro-electric dams. As remaining water in

hydro-electrical dams reached critical levels in July 2011, electricity was rationed and persistent power

shortages occurred (RABOBANK)

The agricultural sector is one of the key sectors of the economy, contributing nearly 30% to GDP and

employing nearly 80% of the labor force (RABOBANK)

1.7 INTERNATIONAL TRADE, TANZANIA & FINLAND 2009 2010 2011

Export of goods and services ($) 4,96 bil.

23 % of GDP 5,97 bil.

26 % of GDP 7,15 bil.

30 % of GDP

Import of goods and services ($) 7,51 bil.

35 % of GDP 8,65 bil.

37 % of GDP 9,99 bil.

42 % of GDP Net export ($) -2,55 bil. -2,68 bil. -2,84 bil. FDI net inflows (% of GDP) 1,94 % 1,89 % … Source: CIA, World Bank, OECD

The export commodities are gold, coffee, cashew nuts, manufactures and cotton, and the most important

export partners are India (8,5 %), China (7,6 %), Japan (7, 1 %), Netherlands (6,2 %) and the UAE (5,7 %)

(FINPRO)

The most important import commodities include consumer goods, machinery and transportation equipment,

industrial raw materials and crude oil. Most important import partners are India (14 %), China (13,7 %), South

Africa (7,8 %), Kenya (6,9 %) (FINPRO)

Exports seem to be geographically diversified, since none of the countries have a share over 10 %. This could

partly explain why the country was so little affected by the financial crisis (FINPRO)

Gold production has been growing significantly in the past decade. Tanzania is Africa’s third largest gold

producer after South Africa and Ghana (FINPRO)

Economic progress seems favorable in general and the only concern is the inflation pressure. So far, the

country has been able to keep its macroeconomic policies stable (also with the support of WB and IMF),

which shows in good performance during the global recession (FINPRO)

Finland and Tanzania have long-standing relations in development cooperation, but trade happens on a very

small scale. Bilateral development cooperation has many projects in forestry related issues so investment

opportunities could be found via these connections, even though the sector is small in Tanzania. There is also

some cooperation in ICT and energy (FINPRO)

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1.8 EDUCATION Literacy rate, % of people ages 15 and above, 2009 73 % Primary school enrolment, % net, 2010 91 % Higher education: Public universities, public university

colleges/institutes Private universities, private university colleges/institutes

Largest universities: University of Dar es Salaam Open University of Tanzania (Dar es Salaam) Mzumbe University St. Augustine University of Tanzania (Mwanzay) Institute of Finance Management (Dar es Salaam)

Source: World Bank, Herana Gateway

Public universities and university colleges fall under the jurisdiction of the Ministry of Higher Education,

Science and Technology (MHEST), while public non-university institutions are regulated by respective

government ministries. The Directorate of Higher Education in the Ministry coordinates all the activities of

public universities (HERANA GATEWAY)

Dar es Salaam city is the major location of over 40 % of the public and private higher educations in Tanzania

raising some critical questions about the equitable distribution of these institutions and their accessibility to

the majority of Tanzanians especially those in rural areas (HERANA GATEWAY)

The low participation rate in higher education in Tanzania can be attributed to the low participation rate in

secondary education, which in turn is attributed to low budgetary allocation to secondary education

compared to primary education (HERANA GATEWAY)

1.9 GENERAL OPERATING ENVIRONMENT - SUMMARY

Stable political environment.

Tanzania’s popularity as a tourist destination is growing. Large potential in future regarding income from

tourism, with opportunities also for business sector.

Poor economic performance. Ease of doing business index shows lack of support in business environment.

Poverty situation is improving very slowly also due to high inflation and rising prices of food.

Very problematic energy conditions. Electricity shortages and blackouts.

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ENERGY & RENEWABLE ENERGY

2.1 General Situation in Energy Sector

2.2 Energy Policy

2.3 Renewable & Fossil Energy Resources

2.4 Supply & Demand for Energy Solutions

TANZANIA report 10 (28)

2.1 GENERAL SITUATION IN ENERGY SECTOR 2009 1990 Total energy consumption: 228,1 TWh 113,2 TWh Energy consumption per capita: 5,2 MWh/capita 2,6 MWh/capita Electricity consumption: 3,73 TWh 1,30 TWh Electricity consumption per capita: 86 kWh/capita Access to electricity: 14 % Access to electricity urban population 39 % Access to electricity rural population 2 % Energy imports (% of energy use) 8 % 7 % Electricity imports (% of electricity use) 0 % Power production capacity: 957 MW 506 MW Hydro power production capacity: 579 MW 329 MW Electricity production: 4,63 TWh 1,63 TWh Hydro electricity production: 2,65 TWh 1,46 TWh Share of population using solid fuels: 90 %

Fossil fuels % of total energy 11,1 % 6,9 % (IEA, World Bank, IRENA, UN data)

Major sources of commercial energy in Tanzania are petroleum, hydropower and natural gas. 81 % of population use

traditional solid fuels such as fuel-wood and charcoal in residential sector for heating, light and cooking. The

residential sector contributed 73 % of energy consumption in 2009. Further development of the use of biomass and

extension of national electricity grid would reduce this consumption greatly.

Self-sufficiency

Energy import is only 8 % of energy consumption in Tanzania

Tanzania has no proven oil reserves. Tanzania has one oil refinery in Dar es Salaam with capacity of 17,500

barrels per day. Oil imports were estimated at 30,040 bbl/day (2009). Total petroleum product imports were

1,705 ktoe in 2009 and the only energy resource imports that year. The petroleum import bill is estimated at

US$ 160 million per year, accounting for 30% of the country’s foreign currency earnings. This constitutes

about 8% of total national imports.

Grid connections to Zambia and Uganda enable small amounts of electricity import (5-10MW).

(Reegle Country Profile), (MBendi)

Electricity availability

14 % of the population had access to electricity in 2009. Only 2% of rural people and 39% of urban people

have access to electricity. Only 1% is able to use electricity for cooking. 37.7 million people are lacking access

to modern energy services.

Distribution from power stations occurs via 2,986 km of 220 kV transmission lines, 1,971 km of 132 kV lines,

and 554 km of 66 kV lines. The grid runs primarily East-West through the centre of the country. Northern and

southern areas lack easy grid access.

(Reegle Country Profile)

TANZANIA report 11 (28)

Electricity capacity

Due to droughts over the East Africa region there are low water levels in the hydro-electric dams causing

power cuts. Tanzania Electric Supply Company (Tanesco) has needed to rely on gas-powered generators and

Tanesco plans to meet future demand with more thermal electricity projects

Peak demand in 2010 was 879 MW. Capacity was that year 660 MW and 192 MW of emergency power plants

were retired. The lack of margin for stable operation of the power system network grows more acute. New

power generation and transmission projects are needed

Tanzania electricity consumption per capita was 85/kWh per annum in 2009. Consumption is growing at a

rate of 11 – 13% per annum. (Reegle Country Profile)

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Source: IEA Country Energy Balance, 2009

TANZANIA report 13 (28)

2.2 ENERGY POLICY Energy policy publications The National Energy Policy (2003) Organizations responsible for energy policies Ministry of Energy and Minerals /

Department of Energy Targets to increase use of renewable energy No information available Subsidies/ Incentives for Renewable Energy Feed-in Tariffs for renewables approved 2009

The National Energy Policy 2003 (link)

Formulated in 2003 to Revision the 1992 National Energy Policy. Focussed on market mechanisms and means

to reach the objective, and achieve an efficient energy sector with a balance between national and

commercial interests.

The overall aim of the policy is to have affordable and reliable energy supplies in the whole country;

o have affordable and reliable energy supplies in the whole country;

o reform the market for energy services and establish an adequate institutional framework, which

facilitates investment, expansion of services, efficient pricing mechanisms and other financial

incentives;

o enhance the development and utilisation of indigenous and renewable energy sources and

technologies;

o adequately take into account environmental considerations for all energy activities;

o increase energy efficiency and conservation in all sectors; and

o increase energy education and build gender-balanced capacity in energy planning, implementation

and monitoring.

The 2009 Electricity Act (link)

Opened the Tanzanian electricity sector for private companies. Ended 40 year monopoly held by TANESCO in

the national power sector. Independent power producers (IPP) penetration so far has been limited, but is

steadily increasing.

The Rural Energy Act of 2005 (link)

Established the Rural Energy Board, Fund and Agency responsible for promotion of improved access to

modern energy in rural areas.

National Solar Programme

Tanzania is in the process of implementing a National Solar Programme under the World Solar Programme

(WSP). The government has declared two of its five project proposals submitted to UNESCO as being of high

national priority. These are: village level solar electrification and small islands solar electrification. Efforts

have been made to seek donor support; however, no funds have been committed yet.

(Reegle Country Profile)

TANZANIA report 14 (28)

Energy efficiency

No governmental projects are currently under-way in the sector. Energy efficiency development is slow due

to limited capacity in strategic planning at Ministerial levels, a lack of awareness, a lack of financial resources

for investing in efficient equipment, a shortage of technical capacity to disseminate the skills and adaptation

of the technologies, and other issues. (Reegle Country Profile)

Subsidies/ Incentives for Renewable Energy

Feed-in Tariffs, approved 2009 (Tanzania Renewable Tariffs (link), Feed-in-Tariffs for Renewables (link))

Other

Tanzania is member of Eastern African Power Pool (EAPP) (link) and Southern African Power Pool (SAPP) (link)

which are promoting regional integration in energy development and policy.

Tanzania was included in a 2005 study commissioned by The Energy, Environment and Development Network

for Africa (AFREPREN) (link) and Heinrich Böll Stiftung to examine the biomass co-generation and geothermal

potentials of Ethiopia, Kenya, Tanzania and Uganda.

In an effort to increase access to electricity, the government is promoting Small Power Projects of up to 10

MW, through the introduction of a simplified implementation framework. The MEM, EWURA and the REA are

developing the framework for renewable energy projects. The framework shall include a Standardised Power

Purchase Agreement (SPPA), Standardised Power Tariff Methodology, and a Standardised Power Tariff (SPT).

Power System Master Plan 2007-2031 (PSMP) presents strategic Visions, Scenarios and Action Plans for

Enhancing Tanzania Power Systems towards Next Generation Smart Power Grid (link). Short and medium

term projects have been identified. These include: the processing of a number of PPAs relating to

interconnections with neighbouring countries and IPPs, the construction of new generation facilities

(including 100 MW at Ubungo, 60MW at Nyakato – Mwanza, and 222 MW at the Rumakali Hydropower

Project), the expansion of the high-voltage transmission network, and further studies into wind energy

projects at Singida and Makambako.

In 2008, the Energy Development and Access Expansion Project, a US$111.5 million International

Development Association credit and Global Environment Facility grant, was approved by the World Bank.

This project is primarily focused on the improvement of TANESCO's transmission and distribution grid. The

project also supports renewable energy options, namely, mini-hydropower generation, biomass co-

generation, and solar energy. Mechanisms to encourage investment include a US$ 500 grant for each new

rural connection using RE sources, and a Sustainable Solar Market Packages program, providing effective

power solutions for a wide range of sectors. Rural Energy Agency and Innovation in Delivery of Modern

Energy Services to Rural Areas (link)

(Reegle Country Profile)

TANZANIA report 15 (28)

2.3 RENEWABLE & FOSSIL ENERGY RESOURCES Significant renewable energy resources Wide renewable energy resources Proven oil reserves 0 BBL

OPEC

Fossil fuels

The Tanzania Petroleum Development Corporation (TPDC) (link) undertakes oil exploration and development

in the country. The natural gas company, Songas, is jointly owned by Globeleq, TANESCO, TPDC, the Tanzania

Development Finance Company Ltd. (TDFL) and Finance for Development (FMO).

(Reegle country profile)

Solar energy

Although potential for solar PV technology is good with an average daily solar insolation of 4.6 kWh/m², the

potential has hardly been tapped. Solar PV in Tanzania has mainly been implemented by donor and NGO

projects for dispensaries, hospitals, offices and communication technology, but has also found use in lighting,

radio, TV, and in a few cases for water pumping. Recent estimates on the installed capacity of PV systems in

the country is about 1.7 MW, however market potential for solar PV countrywide is estimated to be 20.2MW.

Tanzania is now experiencing significant growth in its PV market (100kW in 2005 to 350kW in 2008).

(Reegle Country Profile)

Wind energy

Tanzania has large areas with average wind speeds of 5-7m/s. There is, therefore, a technical potential for

electricity generation from wind energy. There are about 7 wind sites potential for electricity generation.

Wind turbine installations amount only to 8.5 kW. It is estimated that about 58 wind pumps have been

installed in Tanzania. This potential has not been fully exploited, mainly due to the high initial cost of pumps.

(Renewable Energies in Africa (link), Reegle Country Profile)

Biomass energy

Tanzania has 4.39 billion m3 of woody growing stock with an annual increment of 140 million m3. There are

about 15 million tons per annum of crop residues available for use as fuel. The estimated theoretical co-

generation potential in Tanzania is over 395 MW. Currently, the country has an installed capacity of 33 MW

from both sugar and wood-based industries. Studies have revealed that Tanzania has the capacity to

generate more than 200MW of electricity per annum from sugar cane residues (bagasse), in four sugar

factories, namely Mtibwa, Kilombero, Kagera and TPC. Estimated energy generation potential from excess

bagasse is about 99.42 GWh per year. (Reegle Country Profile)

Geothermal energy

Rift Valley is potential area for geothermal exploitation. At least 15 thermal areas with hot spring activity

occur in Tanzania. Potential geothermal sites could contribute up to 650 MW to the country’s energy mix,

TANZANIA report 16 (28)

however the potential is still under investigation, and geothermal power is still a long-term option for the

country (Geothermal Energy as an Alternative Energy Source for Tanzania (link), Geothermal Exploration in

Tanzania - Status Report (link))

(Reegle Country Profile)

Hydropower

With hydroelectric power potential estimated to be 3,800 MW, of which only roughly 382 MW has been

exploited, Tanzania has a high potential for investment in its hydropower sector. Moreover, with a large

isolated rural community unable to access the national grid, the government of Tanzania has placed rural

electrification as a major component of its rural development programs, with hydropower being a suitable

energy source for such purposes. (Reegle Country Profile)

2.4 SUPPLY & DEMAND FOR ENERGY SOLUTIONS

Households

Heat for cooking and warm water

Power for lighting, communication and electronics

Commercial and public services - including healthcare, education, administration, business

Power, heat and cooling

Infrastructure - including water supply, sanitation, communication, waste management

Power, heat and fuels

Traffic and transportation

Fuels and power for vehicles

Agriculture

Fuels for vehicles

Fertilizer

Power and heat for processing crop

Industry

Heat, cooling and power

Tourism - including resorts, lodges etc.

Heat, cooling, electricity, warm water

TANZANIA report 17 (28)

Competition

The electricity sector is dominated by TANESCO, which is a vertically integrated utility owning generation,

transmission and distribution facilities for electricity supply in Tanzania. Due to the high cost of diesel,

TANESCO have not dispatched power from APR Energy, a global temporary power provider, in recent times.

TANESCO operates the main transmission network of the country, through which the vast majority of

electricity flows. Some small decentralised grid systems also exist, operated by private IPPs or communities.

The recent Electricity Act 2008 has liberalized the electricity generation, transmission and distribution sector.

The effect of liberalization is to remove the monopoly of state owned electricity companies to generate,

transmit and distribute electricity.

There are a few Independent Power Producers (IPPs) in the generation of electricity, including short-term

emergency rental power plants. Songas has a long-term contract (over 10 years) to provide power, while

Artumas Group & Partners (Power) has an interim power purchase agreement, which is renewable each year.

Aggreko, APR Energy and Dowans are emergency power providers with short-term contracts (2 years). By the

end of 2008, IPPs contributed a total installed capacity of 282 MW.

Questions have been raised concerning the lack of private sector investment into long-term electricity

generation capacity. The current low level of electricity tariffs make the construction of large capacity power

plants unfeasible, as evidenced by TANESCO's operating loss of US$18 million in 2010, whilst charging an

average tariff of 8.6 USc/kWh. (Reegle country profile)

(Reegle Country Profile)

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ENVIRONMENTAL GOVERNANCE

3.1 Description of Environmental Governance

3.2 Environmental & Social Requirements for Projects

TANZANIA report 19 (28)

3.1 DESCRIPTION OF ENVIRONMENTAL GOVERNANCE

According to African Development Bank Country Strategy Paper 2011 – 2015, Tanzania’s strengths include liberties

such as freedom of press, speech and religion, and freedom of assembly and associations. Challenges remain in weak

transparency and accountability of institutions, business climate bottlenecks and deteriorating educational quality.

Despite good macroeconomic progress, the incidence of poverty remains high. There are also serious environmental

threats, which climate change is aggravating. The state of transport, energy and water infrastructure remains poor.

(AfDB 2011).

Responsibilities for environmental issues are divided into several different ministries, like the Ministry of Natural

Resources and Tourism, and the Ministry of Water. The National Environment Management Council (NEMC) came into

being in 1983 when the Government of Tanzania enacted the National Environment Management Act No. 19. The

mandate of NEMC includes:

To enforce and ensure compliance of the national environmental quality standards.

To review of Environmental Impact Statements (EIS) and conduct environmental monitoring and auditing of

projects and facilities.

To undertake and co-ordinate research, investigation and surveys in the field of environment and collect, and

disseminate information.

To carry-out research and surveys for the proper management and conservation of environment.

To render advice and technical support to entities engaged in natural resources and environmental

management.

To initiate and evolve procedures and safeguards for the prevention of accidents which may cause

environmental degradation.

To enhance environmental education and public awareness; and establish and operate national

environmental information system for sound environmental management.

To publish and disseminate manuals, codes and guidelines relating to environmental management and

prevention or abatement of environmental degradation.

3.2 ENVIRONMENTAL & SOCIAL REQUIREMENTS FOR PROJECTS

The legislation for Environmental Impact Assessments (EIA) came into force in Tanzania only in 2004 with the

Environmental Management Act. According to Sosovele (2011), the number of EIAs has rapidly increased after the

official regulations. However, numerous projects are still conducted without an EIA, although required by the law.

Sosovele argues that even the central government has implemented several large construction projects with no EIA.

Also the quality of EIAs done has been questionable. Local decision makers’ awareness on legal requirements is low,

although most decisions on development projects take place at this level. There are also cases there municipal leaders

and the National Environment Management Council have made contradictory decisions. One problem is also that

TANZANIA report 20 (28)

NEMC is unwilling to oppose government development projects for environmental reasons, even though acting as a

watchdog is a part of NEMC mandate.

NEMC determines the required level for environmental assessment. Projects can be required to conduct a full EIA or a

preliminary assessment, or it can be deemed that no EIA is needed. In some cases NEMC can also reject the project

proposal. For full EIA also a public information programme is required and public consultations organized. For

controversial projects, NEMC will organize its own additional public hearings. EIAs can only be done by individuals and

firms registered at NEMC. (Rebelo and Guerreiro 2006).

Projects listed as requiring an EIA in the Environmental Management Act include:

General:

o any activity out of character with its surrounding;

o any structure of a scale not in keeping with its surrounding; and

o major changes in land use.

Urban Development.

Transportation.

Dams, rivers and water resources.

Aerial spraying.

Mining, including quarrying and open-cast extraction

Forestry related activities.

Agriculture including.

Processing and manufacturing industries including.

Electrical infrastructure.

Management of hydrocarbons including the storage of natural gas and combustible or explosive fuels.

Waste disposal.

Natural conservation areas.

Nuclear Reactors.

Major development in biotechnology including the introduction and testing of genetically modified

organisms.

Any other activity as may be prescribed in the regulations.

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ORANIZATIONS, SOURCES, REFERENCES

4.1 Organizations & Funding Possibilities

4.2 Sources of Information, References & Links

TANZANIA report 22 (28)

4.1 ORGANIZATIONS & FUNDING POSSIBILITIES

ENERGY

Ministry of Energy and Minerals (MEM) (link)

The MEM has responsibility for setting and reviewing policies and strategies as set out in the National Energy

Policy and the National Energy Strategy through issuances and guidelines. (Reegle)

Department of Energy (DoE)

The Department of Energy within the Ministry of Energy and Minerals works on new and renewable energy

issues, including the planning and implementation of biomass projects. There are strong links to national

NGOs, higher learning institutions, private companies and other relevant institutions, which frequently act as

implementing partners. (Reegle)

Ministry of Industries and Trade (link)

This is the parent ministry of the Centre for Agricultural Mechanisation and Rural Technology (CAMARTEC)

and the Small Industries Development Organisation (SIDO) which have both played key roles in biomass

technology development and dissemination. SIDO is responsible for planning, coordinating, promoting and

offering technical, economic and management services to small industries. It has carried out several projects

in the sector. Other areas of competence are design and fabrication of stoves for residential and institutional

applications (Reegle)

Rural Energy Agency (REA) (link) and the Rural Energy Fund (REF)

Established under the Rural Energy Act in 2005. The Agency is governed by the Rural Energy Board, which

was established in 2006 to oversee the administration of the Rural Energy Fund. (Reegle)

Rural Energy Fund (REF)

Established under the Rural Energy Act in 2005. The REA is an autonomous agency under the MEM, and has

been in operation since October 2007. The major functions of the REA are: to

o Promote, stimulate, facilitate and improve modern energy access for productive uses in rural areas,

in order to stimulate rural economic and social development

o Promote rational and efficient production and use of energy, and facilitate identification and

development of improved energy projects and activities in rural areas

o Finance eligible rural energy projects through the REF

o Prepare and review application procedures, guidelines, selection criteria, standards and terms and

conditions for the allocation of grants

o Build capacity and provide technical assistance to project developers and rural communities

o Facilitate the preparation of bid documents for rural energy projects. (Reegle)

TANZANIA report 23 (28)

The National Environment Management Council (NEMC) (link)

Established in 1986, is part of the Vice President’s Office. The main role of the NEMC is to perform an

advisory role to the government on all matters relating to environment management. In particular, the

NEMC sets environmental standards for project investment in conjunction with the Tanzania Bureau of

Standards (TBS), which sets and approves technical equipment specifications. (Reegle)

The Energy and Water Regulatory Authority (EWURA) (link)

An autonomous multi-sectorial regulatory authority, established under Cap 414 of the laws of Tanzania.

EWURA commenced its operations on 1st of October 2005.

EWURA is responsible for:

o Promoting effective competition

o Protecting consumers and suppliers

o Promoting the availability of regulated services to all consumers, including low-income and rural

communities

o Taking into account the need to protect the environment, and

o Enhancing consumer knowledge of the regulated sectors

o Tariff-setting, and the issuing of licenses to prospective actors in the power sector (Reegle)

The recent Electricity Act 2008 has liberalized the electricity generation, transmission and distribution sector. The

effect of liberalization is to remove the monopoly of state owned electricity companies to generate, transmit and

distribute electricity.

TANESCO (link)

The state-owned utility is still the dominant player, accounting for 68% of installed generation capacity in

September 2008. Although TANESCO distributes and supplies electricity to the larger part of mainland

Tanzania, and supplies bulk power to Zanzibar, there are some small generators distributing power in limited

areas.

Independent power producers (IPPs) are emerging:

Songas (link) 18%; and Artumas/others 4%.

The 100 MW contract previously administrated by Independent Power Tanzania Ltd, a Malaysian firm, is in

jeopardy after a forced liquidation order was issued by the Tanzanian High Court in 2011, following persistent

corruption allegations.

TANZANIA report 24 (28)

OTHER

African Development Bank (AfDB) (link)

Has several projects in Tanzania. Projects are related to, for example, infrastructure development and

governance. AfDB field office is in Dar Es Salaam. The World Bank has 24 active projects in Tanzania and a

country office in the capital.

The Energy and Environment Partnership (EEP)

Programme is active in Tanzania. Several projects are under implementation and five new projects were

approved in 2012.

Nordic Development Fund (link)

Supports also projects in Tanzania.

Finnish development cooperation (link)

Tanzania is one of long term partners of Finnish development cooperation. Cooperation has focused on the

natural resources, local government reform, and the development of economic activities.

The cooperation includes projects with consultants, sector programmes and budget support. Finland has an

embassy in Dar es Salaam.

United Nations agencies are active in Tanzania:

UNDP has an office in Dar es Salaam. UNDP focuses on pro-poor policy development and wealth creation,

democratic governance, environment and energy, HIV / AIDS and gender, and crisis prevention and recovery.

Global Environment Facility has several projects in Tanzania.

Clean Development Mechanism (CDM) (link) projects

Tanzanian government is promoting CDM projects and the Designated National Authority for CDM is Vice-

President’s Office, Division of Environment. Tanzania CDM guide for investors provides a list of the approved

interim CDM projects that can apply in Tanzania. Similar to other African countries, Tanzania lacks capacity to

utilize the complicated CDM process. There is one registered project in Tanzania and two are under

evaluation. Tanzania participates in UNDP’s CDM capacity building programme CD4CDM (link)

The Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) (link)

Has offices in all 21 regions. TCCIA offers commercial services, business support and information.

There are many NGOs in Tanzania. The Ministry of Community Development, Gender and Children provides National

NGO Coordination (link). The website has lists of NGOs according to their line of action. There are some eighty

environmental NGOs listed.

TANZANIA report 25 (28)

4.2 SOURCES OF INFORMATION, REFERENCES & LINKS

Tanzania Renewable Energy

Association Promoting sustainable development of RE in

Tanzania. Non-profit, non-governmental Business Link

The Tanzania Chamber of Commerce, Industry and

Agriculture Trade Business Link

Energy access Business success stories Business Link

Tanzania Trade Statistics EU EU – Tanzania trade overview Economy Link

Tanzania Economic Update World Bank Economy, labour force and education

in Cameroon Economy Link

International Monetary Fund Economy Link

OECD Economy Link

HE Financing in East and Southern Africa

Johnson Inshengoma

Herana Gateway African higher education research Education Link

University of Dar es Salaam Education Link

Country Profile Finpro General Link

Country Profile Rabobank General Link

Tanzania at a Glance World Bank General Link

Country Profile CIA General Link

Country Report Economic Intelligence Unit Country report General Link

The Energy and Environment

Partnership Africa Project funding General Link

The Ministry of Community Development, Gender and

Children NGO coordination General Link

Government Government Link

Tanzania Country Specific Information

US Department of State International travel information Government Link

Tanzania's Infrastructure A Continental Perspective

World Bank Infrastructure Link

Tanesco Generation, transmission and distribution of

electricity Infrastructure Link

United Nations Society Link

United Nations Society Link

International Tax Deloitte Taxation highlights in Tanzania 2012 Business Link

Country Energy Information Developing Renewables Business Link

Doing Business World Bank Business Link

TANZANIA report 26 (28)

Economic Outlook AfDB, UN, OECD Economy Link

Country Risk Classification Finnvera Economy Link

Corruption Perceptions Index Transparency International Society Link

Country BTI Transformation Level BTI Group BTI analyzes and evaluates the quality of

democracy, a market economy and political mgmt. in 128 developing and transition countries

Economy Link

International Energy Association General Link

Renewable Energy Country Profiles International Renewable Energy

Agency (IRENA) General Link

Open Energy Info Country profile, energy maps, tools, programs,

organizations & institutions General Link

Country Energy Profile & Information

Reegle Clean energy info portal General Link

Renewable Energies in Africa European Commission, Joint

Research Centre Government Link

Global Environment Facility The GEF unites 182 countries in partnership with intl. institutions, civil society organizations, and the private sector to address global env. issues

Environmental Governance

Link

Clean Development Mechanism United Nations Framework

Convention on Climate Change

Environmental Governance

Link

The Energy and Environment

Partnership Africa Project funding Business Link

MBendi Economy, Risks, Industry, Business, Energy and a

lot of other information Business Link

African Development Bank

(AfDB) Contains structured and analysed information on

economic, political and social status General Link

Directory of Development

Organizations Contains list of development organizations in the

country Society Link

United Nations Development

Programme (UNDP) Un-political information on country's status on

environmental, social and financial situation General Link

Communicaid

Communicaid is a culture and communication skills consultancy. They enable their clients to create profitable international relationships by

building cultural bridges that enhance understanding and establish trust.

Society Link

Oil and Gas Profile A Barrel Full Business Link

The National Energy Policy 2003 The Ministry of Energy and

Minerals Government Link

Tanzania Electricity TANESCO Monopoly Ending

Tanzania Invest article 2009 Business Link

The Rural Energy Act 2005 The Government of Tanzania Government Link

Tanzania Renewable Tariffs 2010 Alliance for Renewable Energy General Link

Renewable Energy Feed-in-Tariffs Andrew Gray Growlings (UK) Business Link

Eastern Africa Power Pool (EAPP) Membership of EAPP comprises public utilities,

companies in charge of power generation, transmission and/or distribution in Eastern Africa

Business Link

Southern African Power Pool

(SAPP)

The members of SAPP have created common power grid between their countries and a common market for electricity. SAPP was founded in 1995

Business Link

Renewable Energy Technologies in Tanzania Biomass based

cogeneration Gwnag'Ombe General Link

TANZANIA report 27 (28)

Visions, Scenarios and Action Plans Towards Next Generation Tanzania

Power System

Kihwle, Hur, Kyaruzi

MDPI Journal General Link

Rural Energy Agency and Innovation in Delivery of Modern

Energy Services to Rural Areas Justina Uisso Rural Energy Agency General Link

The Tanzania Petroleum

Development Corporation (TPDC) Business Link

Tanzania: Geothermal Energy as an Alternative Energy Source for

Tanzania

The Federal Institute for Geosciences and Natural

Resources (BGR) Cooperation Project Business Link

Geothermal Exploration in Tanzania Taramaeli Mnjokava

Status Report General Link

Rural Energy Agency Government Link

National Environment

Management Council - Tanzania

Environmental Governance

Link

Energy and Water Utilities

Regulatory Authority Government Link

Songas Songas generates electricity using gas from the Songo Songo Island gas fields, off the coast of

southern Tanzania Business Link

Comparing EIA procedures in KEN, TAN, MOZ and EU

Rebelo, Guerreiro Paper presented at the 26th annual conference of International Association for Impact Assessment

Environmental Governance

Link

Governance challenges in Tanzania's environmental impact

assessment practice Sosovele, Hussein

African Journal of Environmental Science and Technology

Published: 2011, Vol 5 (2), pp 126-130 Environmental

Governance

Energy Systems: Vulnerability - Adaptation - Resilience (VAR) 2009

Damian Casmiri Helio General Link

African Energy Supplying solar, wind and power backup

equipment on a wholesale basis Business Link

Alternative Energy Africa Information portal about alternative energy in

Africa Business Link

Inforse-Africa International network for sustainable energy Business Link

African Wind Energy Association Business Link

Renewable Energy World Conferences & Expo in Africa Business Link

Renewable Energy Africa Business Link

How We Made It in Africa Insight into business in Africa Business Link

Cleantech Knowledge Hub Business Link

The World Council for Renewable

Energy Business Link

International Network for

Sustainable Energy Business Link

Herana Gateway African higher education research Education Link

African Rural Energy Enterprise

Development Community-based organization developing a

strategy for improved access to energy Government Link

African Center for Economic

Transformation

An economic policy institute supporting the long-term growth with transformation of African

economies Government Link

Nordic Development Fund Project funding Business Link

TANZANIA report 28 (28)

Africa and Europe in Partnership Government Link

The Foundation for the Development of Africa

Non-profit organization supporting sustainable development

Government Link

European Biomass Industry

Association Business Link

Global Network on Energy for

Sustainable Development GNESD is a knowledge network facilitated by UN

Environmental Programme Government Link

Global Village Energy Partnership GVEP works with local businesses in developing countries to increase access to modern energy

Business Link

World Resources Institute WRI works with governments, companies, and civil society to build solutions to urgent env. Changes

Government Link

The World Bank Economy Link