Small and medium enterprises (SMEs) will be the main beneficiary of a new initiative aimed at promoting productive uses of energy in Tanzania’s rural areas. This follows the launch of a new program dubbed Rural Electrification Densification Program (REDP) by Energy 4 Impact, Multiconsult and the Rural Electrification Agency (REA).
The partnership is implemented by REA with financing from the Norwegian government through the Norwegian Embassy in Dar es Salaam with the objective of extending the national grid to rural areas in Tanzania.
Multiconsult, a leading engineering consultancy company in Norway acts as REA’s Technical Assistance Consultant for the new partnership. The Norwegian firm has contracted Energy 4 Impact to collaborate on the program component that focuses on promoting productive use of energy (PUE) in the areas that will be electrified through the REDP.
Energy 4 Impact’s role will be to stimulate productive use of electricity through empowering local entrepreneurs in the villages of Tanga and Pwani in south-eastern Tanzania. This will enable the entrepreneurs and the rural population to benefit fully from the expansion of the national power grid.
A range of suitable financing options will be explored, including leveraging existing local (informal and formal) financial institutions, commercial banks, microfinance institutions, as well as supplier credit or asset finance to enable entrepreneurs to acquire such appliances. Ultimately the program is expected to stimulate economic growth and increase livelihoods, income and employment opportunities in the region.
Productive use of energy is an area that has experienced significant growth in recent years with Energy 4 Impact implementing several projects in different countries. The organization has extensive, practical experience of PUE, with a particularly strong track record in East Africa, with a focus on several facets of key actors, such as sellers of power, the PUE enterprises, suppliers of PUE appliances and local financial institutions.