Siemens, a global energy powerhouse, seeks to expand into Tanzania’s market through an undisclosed investment in its energy sector. This is aimed at driving the East African country towards attaining its energy goal.
The German conglomerate, in partnership with the Tanzanian government, estimates that the energy deal will see to the provision of about 1,000 megawatts energy for its over 55 million population. And eighty percent of that energy will be natural gas.
With only about 20% of Tanzanians on the electrical grid, nearly a quarter of electricity generated is lost because of poor transmission infrastructure. The unreliability of the electrical supply has hindered the development of Tanzanian industry.
According to The Exchange, Siemens is to fund the whole deal just like it did for Uganda’s energy sector as its long-term energy ambitions have been aided by the firm, making positive steps with the Ugandan government. The company has recorded huge success in other countries projects it has executed in the past.
In its drive to fill gaps in infrastructure and step up the industrialization of the continent, Siemens in 2017 announced plans to invest 1.1 billion dollars to build electricity networks in Africa over the coming years. The company signed declarations of intention with Uganda and Sudan on planned projects in the electricity industry, transport and health sectors.
“It is now time to raise the entire Africa concept to a new level,” Siemens Chief Executive, Joe Kaeser, told newsmen at the 2017 World Economic Forum on Africa in the South African city of Durban.
Known as the largest industrial manufacturing company in Europe, Siemens has a keen interest in driving Africa’s technology and skills revolution. The manufacturer, who seems to understand the challenges faced in the energy industry, believes extensive and reliable power supply will help tackle major barriers in the growth of businesses.
Siemens’s goal is to double its business in Africa by 2020 to more than three billion Euros.