Tanzania: Tanesco not listed yet at DSE

Energy and Minerals Minister Sospeter Muhongo (pictured) has refuted reports published in some media outlets that the Tanzania National Electric Supply Company (Tanesco) was set for listing at the Dar es Salaam Stock Exchange (DSE), this year.

“This (the report) is a hoax; who says so? It is a deplorable lie,” Minister Muhongo told ‘Daily News’ in a brief text message, reacting to queries by this paper whether the state-owned power utility was really scheduled for listing at the bourse.

On Monday, some media outlets purporting to quote the minister reported to effect that the government of Tanzania had finalized plans to sell 49 per cent shares of Tanesco to the public this year.

The media report drew international interest as investors started to ring domestic brokers asking for more details prior for their buying.

The Zan Securities Chief Executive Officer, Raphael Masumbuko, said some of his clients phoned him immediately after seeing the news in international media.

However, available information indicates that way back in the year 2014 the cabinet approved the Electricity Supply Industry (ESI) reform strategy that seeks, among others, to unbundle Tanesco into three separate units responsible for power generation, transmission and distribution.

The major industry reforms envisage boosting power generation and connectivity towards achievement of the middle-income economy by 2025.

Under the approved strategy, power generation is anticipated to increase from the current 1,583MW to at least 10,000MW by 2025 and increase electricity connection levels from 24 per cent to at least 50 per cent and access levels from 36 per cent to at least 75 per cent by 2025.

The strategy document that was then availed to the 'Daily News' indicates that through the ESI reform strategy and roadmap, the ambitious plan would require 11.4 billion US dollars (over 18tri/-) between 2012 and 2017, which translates into 1.9 billion US dollars (over 3tri/-) annually.

It is also expected that the distribution and generation entity of the power utility will be listed at the Dar DSE by 2024 much as it did not state the number of shares to be sold to the public.

Meanwhile, Prof Muhongo has called upon local and foreign investors to invest in power production to enable the country generate 10,000MW by the year 2025.

Minister Muhongo made the call during a meeting with officials from the ministry and executives of Mtibwa Sugar Estates Limited. He urged the sugar producer to produce electricity and sell it to Tanesco to check power shortages in the national grid.
Source: Daily News, reported from Dar es Salaam, Tanzania
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