TANZANIAN energy company Raddy Energy Solution Limited has signed a 320 million US dollars (about 792bn/-) agreement with Siemens Energy of Sweden to purchase four natural gas–fired power generation units.
The units with a combined capacity of 177 megawatts are expected to significantly boost the country’s electricity supply. Under the agreement, the power generation equipment will be delivered to Tanzania and installed by the end of 2027.
The transaction is being facilitated locally by CRDB Bank, which is acting as the domestic financial partner in structuring and supporting the deal. Raddy Energy is a sister company to Raddy Fibers, an industrial plant located in Mkuranga, Coast Region.
The financing arrangement brings together several Swedish government-backed financial institutions, highlighting strong international support for the project. These include the Swedish Export Credit Agency (EKN), the Swedish Export Credit Corporation (SEK), the Swedish Development Finance Institution (Swedfund), the Swedish International Development Cooperation Agency (SIDA) and Business Sweden.
All institutions are part of the Swedish government system that promotes exports, investment and development cooperation. In addition, the National Board of Trade Sweden (NIR) will participate as part of the international advisory team overseeing the project’s implementation.
Company officials said the 177-megawatt installation is only the first phase of a much larger investment programme. Raddy Energy has set a target of reaching 1,000 megawatts of power generation capacity by 2030, a move that would strengthen Tanzania’s energy security, support industrial growth and enable the country to export electricity to neighbouring markets.
The agreement follows a strategic visit to Sweden from December 10 to 13, 2025, during which senior executives from Raddy Energy held high-level discussions with Siemens Energy and Swedish government financial institutions.
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The meetings took place at the offices of Sweden’s Ministry for Foreign Affairs in Stockholm, after which the delegation visited Siemens Energy’s headquarters in Finspång. The Tanzanian delegation was led by Ambassador Mobhare Matinyi.
Raddy Energy was represented by its Founder and Managing Director, Ramadhan Hassan Mlanzi and the Director of Business Development and Projects, Ediphine Masase.
CRDB Bank’s large projects financing team was represented by Musa Lwila, Saidi Salehe and Andrew Mbunda. Siemens Energy was represented by its director for project financing, Mr Joakim Tornberg and senior sales manager, Ms Christiane Carlsson.
The Swedish government delegation was led by Ms Pia Roed, senior adviser for trade and development for Africa at the Ministry of Foreign Affairs. Other participants included representatives from Swedish institutions: Ms Anna Liberg (Business Sweden), Mr Maximilian Jönsson (Sida), Mr Johan Heiskala (Swedfund), Mr Klas Lindgren (EKN), Mr Pontus Davidsson (SEK) and Ms Christine Bäckström (NIR).
Addressing the meeting, Ambassador Matinyi highlighted strengthening bilateral relations between Tanzania and Sweden, particularly in trade and investment. He said that Tanzania continues to offer wide-ranging opportunities for Swedish investors in sectors such as mining, manufacturing, agribusiness, transport, tourism, technology and innovation.
“The deal is seen as a significant milestone in private sector participation in Tanzania’s power generation sector, particularly in the use of natural gas, which is considered a cleaner and more reliable source of energy to support long-term economic growth,” he said.