Tanzania must leverage its critical mineral resources to drive climate action and transition from wood fuels to cleaner energy solutions, particularly through local solar panel production.

To bridge the gap in clean energy solutions for cooking, lighting, and mobility, the country must ensure an abundant supply of variable renewable electricity (VRE) from sources such as solar panels, wind turbines, electric vehicle batteries, and energy storage systems.

Given Tanzania’s rich deposits of critical minerals like lithium, cobalt, nickel, zinc, copper, graphite, and rare earth elements, the nation is well-positioned to support the technologies needed for a sustainable energy transition.

A 2024 United Nations report titled ‘Resourcing the Energy Transition’ highlights that investments in critical minerals will accelerate clean energy accessibility, reduce import dependency, and lower costs for consumers across Sub-Saharan Africa.

Researchers have identified VRE sources as cost-effective solutions for electricity generation in the region, emphasizing the need for strategic investments.

Tanzania, as for the rest of Sub-Saharan Africa, needs to focus on variable renewable electricity (VRE) sources proved by researchers as cost-effective through win-win investments for electricity generation.

It is encouraged that countries from the region should consider strategies for lobbying foreign direct investments to attract the establishment of facilities for processing rare earth metals for the production of clean energy solutions.

“The strategic minerals are essential towards achieving the Net Zero Emission 2050 in the Sub-Saharan Africa region,” reads the report in part.

A 2023 joint report by the World Resources Institute (WRI) and the Energy Transitions Commission (ETC), A Path across the Rifts: Informing African Energy Transitions, describes the region as a greenfield for renewable electricity systems and electrified end-use sectors.

“Regarding economics, there is consensus that, globally, solar PV and wind power are well on the way to displacing fossil fuels and hydropower as the cheapest technologies for generating electricity,” reads the joint report.

At the Climate Change Conference (COP28) of Parties in Dubai, governments agreed to triple the rollout of renewable energy and double energy efficiency by 2030.

The primary goal was to rapidly increase renewable energy sources like solar and wind power, aiming to triple global renewable capacity by 2030.

To this end, the International Energy Agency (IEA) estimates that demand for the critical energy transition minerals required to enable this global energy transition will triple by 2030, and quadruple by 2040.

Nearly 200 countries have signed on to these ambitious targets as of November 2023, demonstrating a united global effort to tackle climate change through energy transition.

About the exploration of critical minerals' potential in Tanzania, the budget speech by the Ministry of Minerals for 2024/25 specifies that for East African nations to benefit from strategic minerals, the Ministry has prepared a strategy for the development of these minerals.

The strategy aims to ensure value addition in this country, including the production of products needed in the clean energy sources and other technologies in the world.

The construction of the GodMwanga Gems Ltd graphite processing factory has already started in the Handeni district.

Strategic minerals is among the areas of improvements made in the Mining Act Cap 123 R.E 2024 through the amendment bill of various laws number 4 of the year 2024, which has been passed in parliament in February 2025.

"From now on, we will not issue a Mining License and Special Mining License for strategic minerals to any investor if they don’t provide plans for value addition to be handled in the country," Anthony Mavunde, the Minister of Mines, told parliamentarians back in April 2024.

He said the government has set aside the Buzwagi Special Economic Zone in the Kahama District, covering 1,333 acres for the construction of a facility for the value addition of strategic minerals.

"The facilities that will be built in the first phase are Multi Metals Processing, Steel Balls Manufacture, Mine Conveyor Belts, Solar Farms, and the Portable Water Plant," he said.

According to the Tanzania Investment Center (TIC) Quarter Investment Bulletin for April to June released September 2024, the top five sectors attracting foreign direct investments (FDIs) were Manufacturing, Commercial Building, Transportation, Tourism, and Agriculture.

However, the top sectors attracting domestic investments (Dis) were Transportation, Manufacturing, Tourism, Commercial Building, and Energy.

“The total shared capital for domestic investments was pegged at $681.48 million with energy sector forming a share of $0.69 million falling from $57.75 million recorded in the preceding quarter while FDIs in the energy sector had a shared capital worth $21.66 million;

The manufacturing sector led with the largest share of domestic investments worth $197.64 million followed by the commercial building sector with shared capital worth $190.74 million,” reads the TIC bulletin.

TIC doesn’t specify the kinds of energy investments, whether they are clean or fossil fuels.

However, during the reviewed quarter, 33 new job opportunities were through domestic investments in the energy sector out of the total created jobs that accounted for 96,278.

There were 13 jobs created in the energy sector through foreign direct investments out of the total 14,631 jobs created through 12 various economic sectors.

In late May 2023, the Ministry of Energy, through the Tanzania Electric Supply Company Limited, signed an agreement with Sinohydro Corporation from China for the development of a 150 megawatt solar photovoltaic power station to feed into the national electricity grid.

According to the ministry, the project's first phase covers constructing a 50-megawatt solar photovoltaic power plant, alongside a new power station with a 33 kilovolts/220-volt capacity.

The power station will connect to the national grid through a 220 kV transmission line from the Singida region in central Tanzania to Shinyanga in the Lake Zone.

The second phase will consist of plants generating 100 MW, which makes a total project cost stand at 275bn/-.

SmartSolar Tanzania states that the country has plenty of sunshine in an average year, between 2800 and 3500 hours. With the horizontal solar radiation being between four and seven kWh per m² (each day), Tanzania is naturally suited for using solar power to generate high amounts of electricity.

It asserts that solar radiation is highest in the central region of Tanzania. This means the potential for off-grid solar power in rural areas is especially high.