Dar es Salaam, August 22, 2026 — Tanzania reached a historic milestone as the Julius Nyerere Hydroelectric Dam — with an installed capacity of 2,115 MW — was officially commissioned on the Rufiji River on August 22, becoming East Africa's largest hydroelectric facility.
$2.9 Billion to Double Tanzania's Power Capacity
The project's total investment stands at $2.9 billion, partly financed by the China Exim Bank and Tanzanian public funds. Operated by the Tanzania Electric Supply Company (TANESCO), the dam is expected to more than double the country's installed electricity capacity, which had stagnated around 2,000 MW for a population of 65 million. Construction began nearly five years ago in the coastal Pwani region and employed thousands of workers.
An Energy Hub for East Africa
The inauguration opens a new chapter for the region. Tanzania now has the capacity to export electricity to neighbours — Kenya, Uganda, Zambia — through the Eastern and Southern Africa Power Pool (EAPP). Negotiations are underway for export contracts that could be worth hundreds of millions of dollars annually.
Reliable energy supply is also a decisive advantage for the Bagamoyo Special Economic Zone, currently under development. Energy-intensive industries — textiles, agri-food, mining — are the primary targets for new preferential tariffs.
A Strong Signal for the Continent
According to the African Energy Commission (AFREC), Africa still taps only 11% of its estimated hydroelectric potential — one of the highest on the planet. The Julius Nyerere Dam, named after Tanzania's founding father, illustrates the rise of large-scale infrastructure projects financed by Asian partners and multilateral lenders.
Why It Matters
For economic actors in the Indian Ocean region, this inauguration confirms Tanzania's emergence as a regional energy and logistics hub. Cheaper, more abundant electricity attracts foreign direct investment, reduces production costs and boosts Tanzania's export competitiveness. Long-term, electrical interconnections with Indian Ocean islands remain under study as part of the region's energy diplomacy agenda.
Sources: Financial Afrik, TANESCO (August 22, 2026)