Socio-Economic Impacts and Challenges of Electrifying Remote Rural Areas in Tanzania Using a Mini-Grid System

Abstract

This paper examines the socio-economic impacts and challenges of electrifying remote rural areas in Tanzania using mini-grid systems, focusing on the Kuruti Island project in the Pwani Region. Renewable energy-based mini-grids, particularly solar-powered systems, offer a viable solution to improve energy access in off-grid communities. The study reveals significant socio-economic benefits, including enhanced livelihoods, local business growth, improved healthcare and education services, and increased productivity, especially in the fishing industry. However, challenges such as affordability, long-term system maintenance, and limited technical capacity persist. Key policy recommendations include the need for flexible payment schemes, community engagement, hybrid energy solutions, and ongoing technical training to ensure sustainability. Additionally, the paper suggests future research into innovative financing models, scaling of mini-grid projects, and productive energy uses to drive rural development. The Kuruti Island case study provides practical lessons for similar electrification efforts in Tanzania and other developing regions, emphasizing the importance of tailored energy solutions that meet local socio-economic needs.