Arusha — The availability of energy has been cited once again as a fundamental basis to spur economic and social development, particularly for companies to manufacture and the creation of jobs. The Tanzania Rural Energy Agency (REA), in a statement, has stated that the electrification rate has grown to 36 per cent in 2015 from 10 per cent in 2007 and this rate is expected to reach 75 per cent by 2025 and 100 per cent by 2030 which is the year set aside globally for Sustainable Energy for All. The increased use of renewable energy to cater for the country's high demand for electricity, particularly in rural areas is creating enormous opportunities for the small scale and medium enterprises to capitalise and contribute to economic growth. The government is banking on enhancing the use of renewable energy to ensure that more people in rural areas use clean energy alternatives. However, energy poverty that hits most of the rural areas has been affecting most of the developing countries including Tanzania is a major hindrance to realise economic growth. Energy poverty is lack of access to modern energy services. It refers to the situation of large numbers of people in developing countries whose well-being is negatively affected by very low consumption of energy, use of dirty or polluting fuels, and excessive time spent collecting fuel to meet basic needs. The World Energy Outlook report 2014 shows that 36 million Tanzanians have no access to electricity to light their homes as well as engage in small scale economic activities to take place. Failure to access electricity has not only stalled economic development through agriculture and industrial production but also poor health care service delivery. The huge energy deficiencies could have been taken as an opportunity for investors to capitalise but quick survey shows that renewable energy remains the most untapped area.
Availability of energy in Tanzania, has been cited as an essential factor in boosting economic and social development. The Tanzania Rural Energy Agency (REA) has stated the electrification rate has grown to 36% in 2015 from 10% in 2007, with the rate expected to reach 75% by 2025 and 100% by 2030, the year set aside globally for Sustainable Energy for All.