By Faridah N Kulumba
Africa-Press – Tanzania. At the begining of this month, the United Arab Emirate’s (UAE) renewable company Masdar signed an agreement with the Tanzania Electric Supply Company Ltd (TANESCO) related to developing renewable projects.
About Masdar company
Masdar company is also known as the Abu Dhabi Future Energy Company. This renewable energy company is owned by the government of UAE founded in 2006. Masdar is advancing the commercialization and deployment of renewable energy, sustainable urban development, and clean technologies to address global sustainability challenges. The mandate of this company is to help maintain the UAE’s leadership in the global energy sector while supporting the diversification of both its economy and energy sources for the benefit of future generations.
The capacity
The renewable energy deal was signed between Abdulla Zayed, UAE’s Head of Business Development and Investment at Masdar, and Maharage Chande, Managing Director of TANESCO, alongside the Tanzania Energy Congress in presence of Hon. January Makamba, Minister for Energy for Tanzania, has a total capacity of up to 2 gigawatts (GW).
Objectives of the collaboration
The Joint Development Agreement envisages the establishment of a co-owned joint venture (JV) company by the two organizations to progress the project development. TANESCO and Masdar are working together to support Tanzania’s sustainable development and to provide a secure, clean source of energy for the people of Tanzania.
The agreement demonstrates Masdar’s commitment to the Tanzanian market and to the nation’s energy transition, supporting the target to reach 5,000 MW capacity by 2025.
Expectations
According to the Executive Director of TANESCO Chande, the agreement signed will bring about a big change in the development of renewable energy in Tanzania. Through the first phase of collaboration, the country expects to generate approximately 600 megawatts and will continue with other projects until they will reach 2,000 megawatts. TANESCO is looking to add more renewable energy sources to the national grid to meet the country’s growing demand for power and increase energy access.
Project targeted
The UAE’s and Tanzania’s companies are initially targeting the development of renewable energy projects with a capacity of about 600 megawatts starting with solar photovoltaic (PV) and onshore wind. The Joint Venture will further explore the development of projects with a total capacity of at least 2,000 megawatts. The government of Tanzania is targeting an electrification rate for the entire country of 75 percent by 2035.
Tanzania and UAE relationship
The Republic of Tanzania and the United Arab Emirates established their diplomatic relations in 1974, the two states have been maintaining magnificent and great evolving ties. Tanzania opened its embassy in Abu Dhabi in 2002, while the UAE opened its embassy in Dar es Salaam in 2007.
The relationship between the two nations is based at a larger magnitude on the cultural and mainly economic aspects as far as trade, tourism, and areas of investment and other sectors, as well as ways of enhancing their future ties and several issues of mutual interest.
Both nation’s Memorandum of Understandings
In February this year Her Excellency Samia Suluhu Hassan, President of Tanzania, UAE’s Executive Officer of Masdar, and Chande, Managing Director of TANESCO signed a Memorandum of Understanding to develop renewable energy projects in Tanzania. This first agreement between Tanzania and Masdar. This was a testimony of Tanzania’s commitment to clean energy aimed to stimulate the growth of the economy.
Last year the Khalifa Fund For Enterprise Development, signed MoU with the Ministry of Finance and Planning of Tanzania to provide Dh 36.8 million ($10 million) towards the development of micro, small and medium-sized enterprises in Zanzibar.
The aim- The MoU signed by Hussein Jasem Al Nowais, Chairman of Khalifa Fund for Enterprise Development, mirrored the UAE’s commitment to contribute actively to the government’s efforts to promote economic and social development in fraternal friendly countries and to boost economic and social stability. And also emphasizes the strong bilateral relations between the two governments. The agreement aimed to provide funding for about 2,000 expected projects to contribute to creating more than 9,000 jobs for young people in Zanzibar in the coming years.
UAE’s trade volume in Tanzania
The UAE is one of Tanzania’s largest trading partners enjoying the partnership for many years. The trade balance between the two nations stands at USD2 billion annually, in favor of the UAE. In 2013, the UAE imported $85 million worth of goods from Tanzania, with Tanzania importing $1.14 billion worth of goods from the UAE the same year.
Transport contribution
Currently, there are three UAE airlines operating in Tanzania regularly including Flydubai, Emirates, and Eithad. These airlines have contributed much to the economy of Tanzania as they facilitate business and transport tourists from UAE to Tanzania. Tourism is Tanzania’s largest foreign exchange earner.
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