STORY HIGHLIGHTS
- The Government of Tanzania’s rural electrification marketing campaign is boosting mining profitability, creating jobs, and enhancing livelihoods, with help from the World Bank.
- The Rural Energy Agency (REA) has related 213 small mining companies to the grid, lowering their reliance on costly diesel turbines and growing their productiveness.
- With improved sector prospects, a younger feminine engineer is breaking limitations and constructing a profitable profession in a male-dominated trade.
GEITA, March 6, 2025 – After eleven years working overseas, Charles Buzalwa returned residence to Geita, Tanzania, decided to construct his personal enterprise. In 2021, he settled in Shikonoka, a distant village, and invested his financial savings of Tsh 450 million (~$174,000) in a quarry and mining operation–fully cognizant of the challenges he would face because of the lack of electrical energy within the space.
“We were aware the government had plans to bring electricity to small mining industries in the region because they are critical to the local economy,” he defined, “so I remained hopeful.” His optimism was examined. Initially, the quantity he spent on gasoline to run his jaw crushers accounted for a staggering 85% of his day by day costs–Tsh 1.2 million out of Tsh 1.5 million–while he spent Tsh 300,000 on labor. The enterprise barely survived.
While different mining ventures within the area succumbed to the challenges of working with out grid energy, Charles’s technical expertise proved invaluable. He turned his personal mechanic, thus minimizing restore prices and maximizing productiveness the place others faltered. “My personal expertise was a huge advantage,” he stated. “While other small mining companies spent most of their revenue on machine repairs, in addition to fuel, I could keep such costs down on my side.” For three lengthy years, he battled in opposition to the chances.
Finally, in early 2024, the long-awaited electrical energy arrived, courtesy of the Rural Energy Agency (REA). The influence was rapid and dramatic. Charles’s day by day working prices plummeted by virtually 90%, from Tsh 1.2 million to only Tsh 100,000, as he switched from fuel-powered equipment to electrical energy.
Through its efforts to increase electrical energy entry to underserved communities, REA has related 213 small mining companies in Tanzania, permitting them to modernize their operations and contribute extra to native and nationwide development. REA’s marketing campaign is a part of the National Rural Electrification Program, an initiative led by the Government of Tanzania and carried out with the help of the World Bank by the Tanzania Rural Electrification Expansion Program (TREEP). Financed by the International Development Association (IDA), TREEP’s aims embody increasing entry to dependable and inexpensive electrical energy companies, growing the share of renewable vitality sources within the nation’s vitality combine, and enhancing vitality safety and resilience whereas enhancing the monetary sustainability of the vitality sector. To date, because of an preliminary $209 million in funding adopted by an extra $341 million in 2022, TREEP has related almost 8 million individuals, over 1,600 healthcare services, shut to six,500 academic establishments, and greater than 16,000 companies to the electrical energy grid. The program’s success led to the launch of ASCENT TZ, a $300 million venture additionally financed by IDA which goals to speed up entry to sustainable and clear vitality options throughout Tanzania.
For Charles in Shikonoka, whereas the supply of electrical energy has considerably improved operations, his firm nonetheless faces a substantial capital scarcity that’s stopping him from buying such important gear as further vehicles, electrical compressors, and excavators. This has restricted his manufacturing capability. In 2023, for instance, this bottleneck price him a 15,000-ton order for aggregates from the Ministry of Water. Nevertheless, with the ability now related, Charles sees a transparent path to attracting funding and increasing his manufacturing capability.
“The grid connection has opened up opportunities for us,” he stated. “Of course, we still need capital, but this now makes us much more attractive to investors. I am optimistic that, with the right investments, we can double our production capacity and even fulfill those bulk orders that we had to turn down before. The future looks good.”
In northwestern Tanzania, the arrival of grid energy in Nyamagata ward because of TREEP has spurred development within the space’s small-scale gold mining operations, displaying how REA’s rural electrification is driving native development and enhancing livelihoods.
Geita Resources Limited is one in every of over 20 such operations within the space. Before grid energy arrived, the corporate spent over Tsh 1.4 million per day on gasoline alone, which severely restricted profitability. Since the connection, these insufferable prices have been drastically lowered, paving the best way for the growth of investments in each trade infrastructure and enhancements within the lives of native miners.
“Having electricity has boosted our profitability,” stated Yusufu Kulodeswa, the supervisor at Geita Resources. “This has allowed us to hire more miners. Previously, our operations were limited to daylight hours. But now, with reliable lighting, we can run night shifts, effectively doubling our production capacity and creating more jobs in the community.”
In Mbogwe District, Irene Kataraia resides her dream as a mineral processing engineer–a profession path she by no means envisioned. While drawn to engineering basically, Irene initially had little curiosity in mining. “In secondary school,” she explains, “mining was never on my radar. But when I applied to university, it was one of the courses where I was accepted.”
Upon commencement, she needed to battle with the notion that mining is a male area wherein she had no probability to succeed. “It wasn’t easy,” she says. “Given the stereotype that women can’t thrive in male-dominated industries like this one, I wondered if I was setting myself up for failure. But with hard work and determination, things become easier.”
Her turning level got here throughout sensible coaching. “I developed an interest in mining during my field work. I noticed there was a gender gap, and the mentorship offered to women at the place I was training at motivated me to consider moving into this sector,” stated Irene.
Finally, her aspirations took her to Waja, a mineral processing firm in Mbogwe the place she oversees operations over a thousand kilometers from her residence in Dar es Salaam. There, extra challenges awaited her. “I found the environment so unwelcoming without the electricity, especially as I was coming from the bustling city life. It was a big adjustment, but I adapted with time.”
Before electrification, the mine relied on expensive and inefficient diesel turbines. Fuel bills alone amounted to a staggering Tsh 3 million per day, and the 15-kilometer trek for refueling was additionally a relentless drain on time and assets. On days when gasoline was scarce, manufacturing floor to a halt.
In 2023, the federal government’s rural electrification plan introduced energy to the village of Lubeho, the place the mine is positioned, and the influence was rapid. Daily working prices dropped to Tsh 200,000, and manufacturing stabilized between 90 and 100 tons per day.
But the advantages prolonged past operations. “Before, even watching TV was not possible and you had to use your phone battery sparingly,” stated January, who works on the mine. “Sometimes, during big games like Simba vs. Yanga or involving the national team, we had to walk about two kilometers away in the dark. We would return in groups, carrying sticks for our protection from the wild animals. Today, we can watch football in the shade right here, charge our phones at any time, bathe with clean water. It is a huge improvement.”