Tanzania allocates 806 acres of land for construction of new industries

The government of Tanzania has set aside US $8.7m in the 2018/ 2019 fiscal year for the Lake Ngozi geothermal project in Mbeya region.

The chairman of the Tanzania Geothermal Development Company (TGDC), Beatus Segeja confirmed the reports during his visit in Lake Ngozi and said the government was in collaboration with the country’s electric supply company to see through the progress of the construction works.

“Company Limited (TANESCO) and other development partners have come together to implement the project. In order to boost the budget, we will also engage other stakeholder,” said Beatus Segeja.

Also read: Kenya to receive US $300m for Suswa geothermal project

Lake Ngozi geothermal power generator

The first geothermal project in the country is expected to produce 200MW of power from geothermal energy resources by 2025. Currently, there are 50 areas that are considered to have potential for geothermal development.

Talamayeri Njukava, TGDC technical director said that a team of experts had proven that Lake Ngozi was fit enough for geothermal power generation. The lake will be a geothermal source together with other regions such as Songwe, Mbaka and Kiejo.

The lake’s temperature is not less than 230 centigrade with a PPM 1450 chloride making it suitable for the project. According to Mr. Segeja, TGDC will drill three wells in Lake Ngozi that would be later connected to the main grid.

“We were awarded a certificate from the National Environmental Management after an environmental assessment was conducted,” Eng. Kato Kabaka, the TGDC General Manager added.

The project, which according to Mr. Segeja, is set to be a first of its kind in the country and will play a key role in addressing the power woes in the country that relies heavily on hydro-power and gas lately.

Only 24% of the Tanzania population have access to electricity but the demand for electricity in Tanzania is estimated to grow at 10 to 15% in every year.

About Tanzania Geothermal Development Company (TGDC)

TGDC is a government company that was incorporated for the specific purpose of leading the geothermal development resources in Tanzania. The company is a subsidiary company of TANESCO.

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This trend seems to have carried on in 2017, with investors continuing a cautious stance on dealmaking in the continent. In addition, political uncertainty in some of the major African economies – Nigeria, South Africa and Kenya – has also contributed to investor apathy, resulting in them adopting a “wait-and-see” attitude to dealmaking in the continent as a whole. 2. Slowdown in inbound M&A from international investors International investors in particular have seemingly taken their feet off the deal pedal in SSA as they focus on more inward looking developments and uncertainties in their home markets. For example, the UK’s focus on Brexit and the ongoing political uncertainty in Europe has meant most investors in those regions are focusing more on domestic issues rather than on pursuing international M&A opportunities in Africa. 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