Solar Energy Expansion in Tanzania

The United Nations Capital Development Fund (UNCDF) supports local development and government reform in developing countries. UNCDF has a special interest in municipal finance, offering models that unlock public and private resources to fund investments that reduce poverty and support local economic development. A recent UNCDF effort is the launch of the International Municipal Investment Fund (IMIF) to support local governments in achieving the Sustainable Development Goals. UNCDF commissioned the Capstone team to assess the feasibility of solar energy expansion in Tanzania that could be supported by the IMIF. The team interviewed community stakeholders, local and international nonprofits, and private companies to examine how energy across Tanzania is currently used, paid for, and regulated. The team’s final report provides recommendations on how to develop and subsidize the clean energy sector, specifically solar, to improve access to electricity, encourage sustainable energy use, and allow for greater reliance on the national grid.