Tanzania’s private power producer Raddy Energy is set to import four gas-powered electricity generation units worth $320 million from Siemens Energy, marking a significant step in the country’s drive to expand power generation capacity and strengthen energy security.
The procurement process was finalised in Stockholm, Sweden, following high-level engagements involving the Tanzanian government, Swedish financial institutions, Siemens Energy, and local banking partners. The deal is expected to play a key role in supporting Tanzania’s growing electricity demand, driven by industrialisation, urban expansion, and population growth.
A group photograph released after the meeting shows Tanzania’s Ambassador to Sweden, Mobhare Matinyi, alongside Raddy Energy Managing Director Ramadhani Mlanzi, representatives from Siemens Energy, Swedish government-backed financiers, CRDB Bank, the Tanzanian Embassy in Sweden, and Raddy Energy officials.
Strengthening national power supply
According to industry sources, the four gas turbines will be installed at strategic locations in Tanzania and integrated into the national grid to boost overall generation capacity and improve reliability. The units will run on natural gas, aligning with Tanzania’s broader strategy of leveraging its domestic gas reserves to produce affordable and stable electricity.
The project is expected to help reduce power shortages, stabilise supply during peak demand, and support key sectors such as manufacturing, mining, agriculture processing, and services.
Financing and international partnerships
The transaction involves structured financing supported by Swedish government financial institutions, underscoring growing cooperation between Tanzania and Sweden in the energy sector. Local lender CRDB Bank is also playing a role in facilitating the deal, reflecting increased participation by domestic financial institutions in large-scale infrastructure projects.
Officials familiar with the agreement say the involvement of reputable international partners such as Siemens Energy enhances the project’s technical credibility and ensures adherence to global engineering and environmental standards.
Supporting Tanzania’s development agenda
Raddy Energy’s investment aligns with Tanzania’s national development priorities, including expanding electricity access, promoting private-sector participation in energy generation, and supporting the government’s long-term industrialisation agenda.
The additional capacity is expected to improve power availability for businesses and households, reduce reliance on emergency power sources, and contribute to economic growth and job creation.
Once delivered and commissioned, the Siemens gas turbines will represent one of the largest single private-sector power equipment imports in Tanzania in recent years, positioning Raddy Energy as a key player in the country’s evolving energy landscape.
