Dar es Salaam — Sweden and the United Kingdom have raised $67 million towards Tanzania's rural electrification programme.
'The main objective of the financing programme is to increase access to modern energy services in rural areas of mainland Tanzania for sustainable social economic development and poverty alleviation,' the official statement read sin part.
Sweden through the Swedish International Development Agency (Sida) together with the UK government through the Department for International Development (DfID) last week entered into an agreement in which they would finance Tanzania a total of $67,727,272 (Tsh.241 billion) for energy development.
In the agreement, Sweden through Sida will provide Tsh.145 billion while DfID will give Tsh.96 billion all aimed at energy development.
According to a joint communiqué between the Government of Tanzania, Sweden and the United Kingdom issued last week, the financing will be channeled through the Rural Energy Fund (REF) which is managed by the Rural Energy Board and apex body of the Rural Energy Agency (REA), state owned firm.
According to the Rural Energy Agency (REA), Tanzania's rural power access rate is 21%
"This fund will improve 'on grid' energy access as well as provide new energy options for rural households not connected to the grid through mini-grids and solar home systems," a highly placed source from REA said.
The communiqué further reveals that this arrangement sets forth common provisions and procedures for the delegated cooperation between Sida and DFID regarding the support to the programme.
Moreover, the objective of the arrangement is to improve donor coordination thereby reducing the administrative burden of the government and enhancing the efficiency of the Donors' development cooperation.
Sida and DFID are both committed to supporting Tanzania's economic development. This funding confirms their commitment their commitment to a transparent and successful energy sector where the energy needs of all Tanzanians are met.
Rural Energy Agency (REA) is an autonomous body under the Ministry of Energy and Minerals of the United Republic of Tanzania.
Its main role is to promote and facilitate improved access to modern energy services in rural areas of Mainland Tanzania. REA became operational in October 2007.