Tanzania Diesel Generator Market Trends

Market Trends of Tanzania Diesel Generator Industry

Industrial Segment Expected to Dominate the Market

• Tanzania's industrial sector witnessed an upsurge in recent years. The share of the industrial sector in the country's GDP was around 28.67% in 2020, which stands second in the sectoral contribution, after the service sector and agricultural sector.
• The country's Ministry of Finance and Planning recently recommended allocating more funds to the key projects planned for 2022-2023, as it is the second year of the National Five Year Development Plan (2021-2026). The projects tabled for the plan are mostly from the industrial sector.
• In August 2021, installations for the Julius Nyerere Hydropower Plant began in Tanzania through the joint venture of the Arab Contractors and the Egypt-based company Elsewedy Electric. The project consists of 9x235 MW turbines installation for a total capacity of 2,115 MW. The commissioning of the project is expected in 2022 or 2023. Installation work has come after completing relevant civil works carried out by Egyptian and Tanzanian engineers and technicians.
• In December 2021, the Tanzanian government entered a contract with Turkish firm Yapi Merkezi to construct a 368 km section of standard gauge railways in Tanzania. The USD1.9-billion project will connect Dar es Salaam and Morogoro city. The electrical testing began in 2021, and the project is expected to be operational by 2022.
• Such initiatives to expand the industrial sector will have an overwhelming impact on the share of the industrial sector of the Tanzanian diesel generator market.

Growth of the Service Sector Expected to Drive the Market

• The service sector of the country largely includes services like IT and data centers, schools, hospitals, and small and medium business startups. The sector's contribution to the GDP was around 36.25% in 2020, the largest among all the sectors.
• The government programs to boost trade and economic activity and foster digitalization in the country are leading to the highly awaited technical development in the service sector.
• The Ministry of Communications and Information technology, Tanzania, approved the Digital Tanzania Project in May 2021, which aims to increase access to high-quality broadband internet services for government, businesses, and citizens and enhance the government's capability to offer digital public services in the country. The initiative will lead to more data centers and other IT services in Tanzania, which will require a continuous power supply.
• Moreover, the infrastructural development of the commercial sector is expected to boost the market. For instance, in November 2021, the Bagamoyo Special Economic Zone project in Tanzania became the new subject of contention for the Ministry of Industry and Trade, Tanzania. The multi-billion-dollar project was implemented by the Tanzanian government, China Merchants International, and the Oman National Government Reserve Fund (SGRF) to establish the largest port for trade and industries in East Africa. The project is expected to be in service by 2023.
• Such developments is expected to boost the service sector and lead to robust growth in the power demand and solutions like DG sets.