The government, through the Rural Energy Agency (REA) and the National Mining Corporation (STAMICO), signed a contract today, July 22, 2025, to build a new renewable energy production plant (Alternative Coal Briquettes) in the Geita region, worth 4.5 billion shillings.
During the ceremony held at the REA regional office in Dar es Salaam, REA will contribute a total of 3 billion shillings, while STAMICO will contribute 1.5 billion shillings
In this split, REA will finance the purchase of the equipment, while STAMICO will cover land acquisition, construction of the plant building, and installation costs for the machinery.
The contract was signed by Engineer Hassan Saidy, Managing Director of REA, and STAMICO Executive Director Dr. Venance Mwasse.
This contract will enable STAMICO to own five large alternative charcoal briquette production plants. Other alternative charcoal production plants currently in operation are located in Kisarawe District, Pwani Region, Kiwira in Songwe Region, and two other plants in Dodoma and Tabora Regions, which are in the final stages of completion before commencing production.
At the ceremony, Engineer Hassan Saidy stated that the Agency's mission is to ensure that access to clean energy for cooking reaches 80% of the Tanzanian population by 2034. "To achieve this goal, the Agency is implementing various projects, including initiatives to increase production and distribution to improve access to clean energy for rural populations."
"The signing of this contract between REA and STAMICO is one of the implementations of the directives of Her Excellency, Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, requesting the Agency to collaborate with the National Mining Corporation to explore ways to increase production and access to clean energy for citizens, in order to free them from unsafe and unsustainable energy," he said.