The Government of Tanzania and Agence Française de Développement (AFD) have signed a financing agreement worth €130 million with Tanzania Electric Supply Company Limited (TANESCO). The soft loan will support the development of Tanzania’s first grid-connected solar project and upgrades to the national transmission network, transitioning towards a smart grid system. Additionally, a grant of €0.7 million from the French government has been allocated for technical assistance to strengthen institutional capacity in renewable energy and grid management.

The financing will support the construction of a 50 MW solar plant in Kishapu district in the Shinyanga region. This project represents the first phase of a planned 150 MW solar project and will be directly connected to the existing Singida–Shinyanga 220 kV high-voltage transmission line. It will use fixed solar panels and inverters and is expected to generate approximately 91,600 MWh of electricity annually. Furthermore, the project is projected to reduce carbon emissions by around 22,400 tonnes per year.

In April 2025, TANESCO invited tenders for the construction of a 100 MWp solar PV plant. TANESCO is the Project Executing Agency for this project, which is situated in the Shinyanga Region. The government of Tanzania received financing from AFD for the 100 MWp solar plant.