High-voltage submarine cables and clean cooking rollout will support energy equity and climate-resilient infrastructure. ESG BROADCAST shares key takeaways.
The African Development Bank (AfDB) has approved $282.07 million in financing to transform energy access across Tanzania’s island regions—Zanzibar (Unguja and Pemba) and Mafia Island. The five-year infrastructure initiative will install high and medium voltage submarine power cables to enhance grid reliability, expand electrification, and introduce clean cooking solutions to underserved communities.
The investment is part of AfDB’s broader commitment under Mission 300, a joint initiative with the World Bank to connect 300 million people across Africa to electricity by 2030. Tanzania’s national goal is to achieve 75% electricity access and clean cooking adoption within the same timeframe.
The project will increase the islands’ power capacity from 143 MW to 440 MW, a move expected to benefit 465,000 people through new last-mile electricity connections. It will also support the rollout of electric cooking appliances to over 335,000 Tanzanians, helping to reduce dependence on firewood and charcoal—currently used by 90% of the population.
“Expanding electricity access in the country will boost youth-led MSMEs across various industries,” said Patricia Laverley, AfDB Country Manager for Tanzania. “Clean cooking solutions will significantly improve the quality of life for women and girls at home by promoting alternative fuels and efficient technologies.”
The project is designed to deliver both environmental and socio-economic outcomes. Improved electricity infrastructure will catalyze growth in digital services, hospitality, and personal care industries, especially among women and youth entrepreneurs. Additionally, transitioning to electric cooking will reduce indoor air pollution, improve health outcomes, and cut carbon emissions linked to biomass burning.
The energy upgrade will also support Zanzibar’s booming tourism industry, which contributes approximately 30% of the island’s GDP. Stable and clean electricity supply is essential for attracting sustainable investment in the sector and for enhancing visitor experiences.
This strategic investment addresses major equity and climate gaps by bringing clean, affordable energy to isolated regions that have long relied on outdated and polluting sources of power. Employment opportunities will be generated during both construction and operational phases, reinforcing the role of energy infrastructure as a catalyst for inclusive development.
Strategic significance lies in the project’s alignment with AfDB’s Ten-Year Strategy (2024–2033), climate policy updates, and the Sustainable Energy for All agenda. It showcases how targeted investments in grid extension and electrification can advance both environmental governance and equitable economic growth across Africa’s Island economies.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
