Project opportunities and political uncertainty: A tale of two Tanzanias
27 November 2017
African Energy Live Data shows improved energy security and some progress increasing gas capacity and small renewables, but governance doubts cloud the future for power sector developers in Magufuli’s Tanzania
President since 2015, John Pombe Magufuli has a distinctly ambiguous attitude towards private investment, as is evident from his battles with Tanzania’s major mining investors and independent power producer (IPP) Symbion Power Tanzania Ltd. Perceptions of political risk are limiting Tanzania’s attraction to IPPs and keeping international lawyers busy. But while Magufuli’s unpredictable behaviour and apparent lack of concern for the rule of law, or for the sanctity of contracts, has unnerved investors, he has publicly championed open and competitive international tenders, off-grid projects are blooming and some utility-scale projects are going ahead: African Energy Live Data shows more than 500MW under construction, along with the promise of many more distributed energy schemes.