Samia to inaugurate Sh7.45 trillion Julius Nyerere Hydropower Project on August 22

Historic inauguration in Rufiji

President Samia Suluhu Hassan officially inaugurated the Julius Nyerere Hydropower Project (JNHPP) on August 22, 2026, at the project site in Rufiji District, Coast Region. The 2,115-megawatt plant raises Tanzania's installed electricity generation capacity to 4,646 MW, as reported by the Daily News and The Citizen. Energy Minister Deogratius Ndejembi described the event as a historic milestone, saying the completion of the project demonstrates the government's commitment to ensuring sufficient and reliable electricity for national development.

Project scope and construction

The project, located in Rufiji District, was built by an Egyptian consortium of Arab Contractors and Elsewedy Electric, according to reports from Daily News Egypt and TanzaniaInvest. Construction began in June 2019 and was completed in March 2025. The dam measures 1,036 meters in length and 131 meters in height, with a reservoir capacity of 34 billion cubic meters, as detailed by Daily News Egypt. The power plant houses nine turbines, each with a capacity of 235 MW, and routes power through a 400-kilovolt switchyard into the national grid via the Chalinze 1 and Chalinze 2 transmission lines.

Investment and financing

Reports differ on the project's total cost. The Citizen and TanzaniaInvest put the investment at Sh7.452 trillion (approximately USD 3.35 billion), with TanzaniaInvest noting the project was funded entirely through domestic government resources without external financing. Daily News Egypt, however, reported the cost as $2.9 billion. All reports agree the project was financed by the Tanzanian government.

Contribution to the national grid

Since beginning generation, JNHPP has made a substantial contribution to Tanzania's electricity supply. Energy Minister Ndejembi said the plant contributed 44.9 percent of all electricity generated and fed into the national grid in the 12 months to May 31, 2026, as reported by The Citizen and Daily News. The project has helped ease previous power rationing, according to the minister.

With the addition of JNHPP, Tanzania recorded an electricity surplus of 2,375 megawatts against a peak demand of 2,271 megawatts, according to TanzaniaInvest. Peak demand reached 2,199.06 MW on February 4, 2026, compared with 1,908.15 MW a year earlier, citing the 2026/27 Budget.

Regional and bilateral significance

The inauguration was attended by Egyptian Prime Minister Mostafa Madbouly, who unveiled a commemorative plaque with President Hassan. Madbouly, participating on behalf of Egyptian President Abdel Fattah Al-Sisi, conveyed greetings and praised the project as a "great Tanzanian dream" and a testament to Egyptian technical capabilities, as reported by Daily News Egypt. He also called for strengthened economic cooperation between the two countries.

Tanzania's strategic position allows it to connect East and Southern African Power Pools, a point raised by Zitto Kabwe, a lawmaker, in The Citizen's analysis. The government has signed an agreement to sell electricity to Zambia and has an arrangement with Kenya to trade electricity, according to TanzaniaInvest.

Expert and stakeholder views

Economists and business leaders welcomed the project. Lawi Yohana, Senior Lecturer in Economics at the Open University of Tanzania, told The Citizen that more available and affordable electricity would reduce production costs and make locally produced goods more competitive. Dr. Godwill Wanga, Executive Secretary of the Tanzania National Business Council, said the additional capacity could support economic growth if accompanied by investment in transmission and distribution.

Akberalis Jozer, Director and Founder of Akberalis Hardware and Electric Limited, described the plant as a "game-changer," telling the Daily News that reliable electricity would enable manufacturers to expand production and create employment.

Coast Regional Commissioner Abubakar Kunenge said electricity supply in the region increased from 118 MW in 2022 to 356 MW by July 2026, as reported by the Daily News.

Future plans and challenges

Despite the surplus, Energy Minister Ndejembi emphasized that increasing generation capacity alone is not enough, noting the need for a robust transmission network. The 400 kV Chalinze to Dodoma transmission line has been completed, and the Tanzania-Zambia Interconnector (TAZA) is approximately 98 percent complete, according to TanzaniaInvest. The government plans to reach 8,000 MW of installed capacity by 2030 and connect 8.3 million new customers by that year, raising connectivity to 75 percent.

Electricity access has increased from 78.4 percent in 2020 to 85.5 percent, with connectivity rising from 37.7 percent to 52.1 percent, citing the 2026/27 Budget. However, experts also noted environmental risks associated with the project, as mentioned by Prof. Haruni Mapesa in The Citizen.

Perspectives

• Government and project proponents: The Tanzanian government, including President Hassan and Energy Minister Ndejembi, views JNHPP as a historic milestone and a critical step toward energy security and economic growth. They emphasize the project's role in ending power rationing, supporting industrialization, and positioning Tanzania as a regional power hub.
• Egyptian stakeholders: Egyptian Prime Minister Madbouly and the consortium of Arab Contractors and Elsewedy Electric celebrate the project as a demonstration of Egyptian engineering expertise and a symbol of bilateral cooperation. They highlight the strong ties between Egypt and Tanzania, including regional cooperation on Nile Basin matters.
• Economic analysts and experts: Economists like Lawi Yohana and Dr. Godwill Wanga see the project as a positive driver for lowering production costs and attracting investment, but stress that transmission and distribution investments are essential to fully realize benefits. Zitto Kabwe emphasizes Tanzania's potential to earn up to $1 billion in foreign exchange by exporting electricity to regional power pools.
• Environmental concerns: Prof. Haruni Mapesa has raised environmental risks associated with the dam, urging consideration of the project's ecological impact, according to The Citizen.