Regulatory Barriers to Private Sector Direct Electricity Distribution to Customers in Tanzania: An Assessment of the Existing Legal Framework
Private-sector participation in electricity distribution is often presented as a means of mobilizing capital, improving service quality, reducing losses, and widening customer access. In Tanzania Mainland, however, electricity distribution remains highly concentrated in a state-owned incumbent despite a legal framework that permits licensed and registered participation by other entities. This article assesses whether the existing legal and regulatory framework creates barriers to private-sector direct distribution to customers. It applies a doctrinal legal-research method supported by documentary analysis of the Electricity Act, 2008, Energy and Water Utilities Regulatory Authority (EWURA) rules, official sector-performance data, and selected policy and scholarly literature. The article finds that private distribution is not expressly prohibited. Nevertheless, practical entry is constrained by licensing and qualification requirements, multiple institutional approvals, tariff and cost- recovery uncertainty, dependence on incumbent-controlled infrastructure, land and way leave requirements, technical and service obligations, and uncertainty affecting decentralized projects when the main grid arrives. EWURA reported that, as of June 2025,
TANESCO owned approximately 99.50 per cent of the reported electricity-distribution line length, while only two entities held distribution licenses above one megawatt and five entities were registered below one megawatt. The article argues that Tanzania should pursue regulated and accountable market opening rather than abrupt full privatization. It recommends competitive-neutrality rules, coordinated approvals, proportionate licensing, transparent tariffs and subsidies, non-discriminatory access, competition for service areas, clearer mini-grid rules, stronger performance regulation, and institutional capacity- building.
Keywords: electricity distribution; private-sector participation; state monopoly; regulation; market competition; TANESCO; EWURA; Tanzania Mainland; regulatory barriers; energy law.
