Letter from Edinburgh:Here is solution for Tanzania’s power shortage

As Tanzania faces perennial electricity shortage it is the responsibility of patriots to come up with new ideas for remedial action that can make power blues a thing of the past. Our ideas will help us make a collective action to confront this problem. We can’t defeat past failure with old tired ideas. We must come up with new ideas. Yes, new ideas are the weapons for success if we want to achieve adequate and reliable power supply for the long term.Tanzania’s energy sector has been in the hands of ruling elite for many years. Poor performance of Tanzania’s Electric Supply Company (TANESCO) has, of course, been a cause of heated controversy in the company and the political arena. But all of that doesn’t stop us to ask ourselves the two fundamental questions concerning our energy sector? One, what are the factors which will bring about the transition from one point to another? Two, who will provide the necessary leadership to take us from one point to another?The first question is important because it will help us to wake up from the relaxed state we are in; of waiting for help instead of generating new ideas to solve our energy problem. Developed countries are working hard to solve their energy problems. Recently Twelve European companies launched a 400-billion-euro (560-billion-dollar) initiative to plant huge solar farms in Africa and the Middle East to produce energy for Europe (not for Africa). This is evident that though the project will take part in Africa, its intention is not to solve the energy problem of Africa. Thus this means Tanzania’s energy problem can be solved by Tanzanian initiatives.This takes us to the answer of the first question on how we can move forward. The main solution will be a need of collaboration between TANESCO and the Tanzanian public which is urgently needed. This collaboration will be a part of the solution towards significant investments which Tanzania needs to invest in and eventually cover the growing demand for energy. Such results can’t be achieved if we continue to rely on Aid or other financing methods which charges Tanzania (us) very expensive high interest rates.As a way forward we can take advantage of the Capital Market and Securities (Collective Investment Scheme) Regulations, 1997 by establishing a National Energy Public Investment Fund (NEPIF). The fund will aim to promote the development and use of renewable energy (Solar energy and wind power). Moreover, by investing in conjunction with TANESCO, the fund can achieve its aim without taking the whole business and technical risks involved.For example if we aim to issue 4 Million shares in three years of establishment of the fund, I am sure the shares will be oversubscribed before the end of the third year. And if each share will be priced at 100 USD, we will be able to raise 400 Million USD which will be used for development of renewable energy.To make sure this investment scheme gives a chance for all Tanzanian’s from all walks of life; the scheme can provide investors opportunity to buy shares through TANESCO pay points infrastructure or through mobile phone banking like M-PESA which can enable people who have no access to banking facilities to use their mobile phone to take advantage of this profitable and developmental scheme.We are very excited to join the East African Power Pool, but the question is, do we have enough electricity to export to other countries in the power pool? Or we are going to be the importers of electricity like the way we import most of the goods. The nature of our aspirations of Exporting power to other country is positive, but we can’t realize them by leaving this issue to TANESCO alone. Thus this provides the answering of the second question; who will provide the necessary leadership to take us from one point to another? I believe that me and you should provide that leadership because; the public interest requires men and women of intelligence and good will to do things that will transform the society of today and tomorrow. Moreover, an example of the above is seen in TANESCO’s Corporate Business Plan (2007-2011) which doesn’t provide clarity of our desired ends. When it says it wants to export electricity to Kenya by 2010 while at the same time saying we won’t have enough electricity for ourselves for the next two years, it depicts contradiction and it doesn’t make sense. Therefore we need more ideas which will provide knowledge of all the available alternatives and means to achieve these ends. To conclude, I return to the first question which this commentary has sought to answer. What are the factors which will bring about the transition from one point to another in the energy sector? It is a difficult, potentially threatening question, but it is obvious that the starting point if we are serious, as a nation, about wanting energy sector improvement, starts with a general sense of responsibility and the need of the Public to come up with new ideas one of which is the establishment of the National Energy Public Investment Fund (NEPIF).