The Government of Zanzibar has kicked off an $8.4 million energy stabilisation project aimed at ending years of power blackouts, cutting business costs, and boosting economic growth. The initiative, led by Novavis International Ltd, is seen as a major step in modernising the islands’ electricity grid and giving people more reliable access to power.
At the heart of the project is the Mtoni Substation in Unguja, where modern systems like automatic voltage regulators, capacitor banks, and a Static Synchronous Compensator (STATCOM) have been installed. These upgrades are designed to keep the grid stable, reduce damaging voltage fluctuations, and meet the islands’ fast-growing electricity demand. Speaking at the launch, President Hussein Ali Mwinyi described the project as a game-changer for ordinary citizens and the wider economy.
He explained that cheaper and more stable energy will reduce costs for hotels, resorts, manufacturers, and small businesses that previously depended on expensive diesel generators. With improved reliability, productivity is already rising in key sectors like tourism, retail, and manufacturing. “Reliable energy increases efficiency, competitiveness, and investment — all of which drive GDP growth,” Mwinyi said.
The project also ties into the broader Zanzibar Energy Sector Transformation and Access (ZESTA) programme, which targets over 70,000 new household connections. To make this easier, connection fees have been cut in half, from about $77 to $38, opening the door for more low-income families to access electricity.
Another key part is fixing long-standing infrastructure issues. The STATCOM system now stabilises the 33kV line from mainland Tanzania, solving problems of voltage drops and overloads. New regulators and capacitor banks are also running across Unguja and Pemba, replacing outdated systems with world-class technology.
Novavis International’s CEO, Eric Kasalika, said the project will not only ensure stable power but also attract more investors by making Zanzibar more competitive. The initiative further supports the islands’ long-term energy transition plans, with renewables like solar and wind being integrated to boost resilience and sustainability.
