By Business Insider Reporter
The Government of Austria, through UniCredit Bank, has pledged €20 million (approx. TSh60 billion) to finance new renewable energy projects in Tanzania that will generate electricity from solar power and waste.
The commitment was announced by Mr. Hannes Merl, Chief Executive Officer of Merl Solar Technologies GmbH, following talks with Permanent Secretary in the Ministry of Energy, Engineer Felchesmi Mramba, on the sidelines of the 69th General Conference of the International Atomic Energy Agency (IAEA) in Vienna.
A statememt issued by the Ministry quotes Mr. Mramba welcoming the investment, inviting the Austrian company to Tanzania to work with local experts on preparations for the projects.
He assured the government’s full support, describing the initiative as aligned with Tanzania’s National Energy Compact, which aims to deliver universal electricity access by 2030 under the continental Mission 300 programme.
Track record in Tanzania
Merl Solar is not new to Tanzania’s energy landscape. Between 2015 and 2017, the company implemented containerised solar power projects in ten villages across Dodoma, Katavi and Tabora regions.
The investment, worth TSh16.2 billion, brought electricity to 812 households, 27 places of worship, six schools and eight health centres.
Mr. Mramba said these earlier projects demonstrated Austria’s strong partnership with Tanzania in expanding renewable energy access.
“We are grateful to the Government of Austria for its effective delivery of past projects and for this renewed commitment to support our national energy goals,” he said.
National energy compact
Tanzania is a signatory to the National Energy Compact, launched in January 2025 at the Mission 300 Africa Energy Summit in Dar es Salaam. The initiative seeks to connect 300 million Africans to reliable electricity by 2030, with Tanzania targeting nationwide coverage in the same timeframe.
According to official estimates, the country requires more than US$13 billion in investment over the next five years to expand power generation, strengthen transmission and distribution, and promote clean cooking solutions.
About US$5 billion is expected from private sector partners, underscoring the importance of foreign investors such as Merl Solar and financiers like UniCredit.
Balancing challenges and opportunities
While the Austrian funding is a welcome boost, energy analysts note that large-scale renewable projects often face challenges, including high upfront costs, technology transfer, and long-term maintenance.
Waste-to-energy projects in particular require strong regulatory frameworks for waste management and environmental safeguards.
Nevertheless, the opportunities are significant. Tanzania’s growing demand for electricity, especially in rural communities and industrial zones, creates strong incentives for clean energy investment.
By diversifying into solar and waste-to-energy, the country can reduce reliance on fossil fuels, cut greenhouse gas emissions, and create new jobs in green technology.
Strengthening bilateral ties
The meeting in Vienna was attended by Tanzania’s Ambassador and Permanent Representative to Austria, Ms. Naimi S. Aziz, and the Commissioner for Electricity and Renewable Energy, Engineer Innocent Luoga.
Their presence underscored the government’s commitment to building stronger ties with Austria in the energy sector.
For Austria, the partnership enhances its role as a supporter of sustainable development in Africa.
For Tanzania, the deal represents another step towards ensuring affordable, reliable and clean energy for all citizens.
“As we move towards our 2030 targets, partnerships such as this will be crucial in transforming Tanzania’s energy sector and driving inclusive economic growth,” said Mr Mramba.
