By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Zanzibar Investment and Business Insights MagazineZanzibar Investment and Business Insights MagazineZanzibar Investment and Business Insights Magazine
  • Blue Economy
    Blue EconomyShow More
    Zanzibar’s Blue Economy gains depth as Policy transforms lives and industries.
    4 weeks ago
    From Vision to Action: Evaluating Zanzibar’s Blue Economy Journey
    7 months ago
    Zanzibar’s Economic Transition: Significance of harnessing the ocean-based industrialisation
    1 year ago
    A pivotal player in zanzibar’s Blue Economy Agenda
    1 year ago
    From passion for diving to strategic player in Blue Economy
    2 years ago
  • Tourism
    TourismShow More
    Zanzibar
    Paradise Amplified: Tourism’s Most Spectacular Turnaround Yet
    4 weeks ago
    Tourism, Heritage and Global Recognition
    4 weeks ago
    Greener Zanzibar in action : How Mandatory Waste Management is Transforming the Tourism Industry
    8 months ago
    Taking Zanzibar’s Tourism to The Next Level
    1 year ago
    Golden Tulip: Luxurious signature hotels
    2 years ago
  • Finance
    FinanceShow More
    Mandatory Inbound Travel Insurance : From Initial Resistance to Industry Adaptation
    8 months ago
    Want to Develop? Stop diverting funds
    10 months ago
    Zanzibar Surpasses revenue target – Zanzibar Revenue Authority.
    10 months ago
    ZRA’s revenue collection miracle in three months, But can it be repeated?
    1 year ago
    Enterprising Zanzibar: Harnessing the Power of Entrepreneurship and Small Business for Economic Growth
    1 year ago
  • Technology
    TechnologyShow More
    Bridging Zanzibar’s Digital Divide
    10 months ago
    Untapped Potential on E-commerce in Zanzibar
    10 months ago
    Information and Communication Technology (ICT) The tool that can transform Tanzania’s blue economy drive
    1 year ago
    The Key to Zanzibar’s Fintech Revolution
    1 year ago
    7 Keys to Unlock Zanzibar’s Destiny: To Be a Global Hub for Technology, Innovation, and Business
    1 year ago
  • Infrastructure
    InfrastructureShow More
    Expanding Fiber and Data Capacity is Shaping the Future Economy
    4 weeks ago
    ZNCC’s 16th AGM : Private Sector Advances Zanzibar’s Maritime Reform Agenda
    7 months ago
    Strengthening Anti-Money Laundering Compliance in the Real Estate Sector
    7 months ago
    ZIPA’s Initiatives : What sets ZIS 2025 apart from typical business summits
    8 months ago
    Zanzibar’s Clove Industry : Reviving a spice legacy amidst global shifts
    8 months ago
  • Climate Change
    Climate ChangeShow More
    Zanzibar’s Climate Dilemma: A Call for Sustainable Development and Resilience
    1 year ago
    A Delicate Balance: Growth and Climate Resilience, Safeguarding Island Paradise
    1 year ago
    Carbon: Exploring a new path to Zanzibar’s economic growth and sustainable environment
    2 years ago
Reading: How new grid project is transforming homes and businesses
Share
Notification Show More
Font ResizerAa
Zanzibar Investment and Business Insights MagazineZanzibar Investment and Business Insights Magazine
Font ResizerAa
  • Blue Economy
  • Climate Change
  • Entrepreneurship
  • Finance
  • Infrastructure
  • Tourism
  • Blue Economy
  • Tourism
  • Finance
  • Technology
  • Infrastructure
  • Climate Change
Have an existing account? Sign In
Follow US
  • Advertise
© 2025 ZiBi Magazine | All Rights Reserved | Designed by Zanziholics Digital Agency
Zanzibar Investment and Business Insights Magazine > Blog > Trending > How new grid project is transforming homes and businesses
Trending

How new grid project is transforming homes and businesses

Hissham Abdukadir
Last updated: November 16, 2025 1:56 PM
Hissham Abdukadir
4 weeks ago
Share
TRANSFORMER
SHARE

One of the transformers installed at Mtoni area. This unit receives power from the STATCOM device, stabilizes and regulate electricity within Zanzibar’s power grid.


In the bustling markets of Stone Town, where traders depend on refrigerators to keep food fresh, and in the sunlit resorts of Nungwi that host thousands of tourists each year, reliable electricity is more than a convenience — it’s a necessity.

For years, Zanzibar’s residents and investors have grappled with erratic power supply, frequent voltage fluctuations, and costly blackouts that disrupted homes and businesses alike.

But now, a major electricity infrastructure upgrade — crowned by the installation of a new Static Synchronous Compensator (STATCOM) system — is transforming the Isles’ energy landscape and fueling hopes of stable, affordable power for all.

A project built for reliability

The project, spearheaded by Novavis International Ltd, a U.S.based firm with Tanzanian ownership, was officially launched on October 1, 2025 by President Dr. Hussein Ali Mwinyi and carries an investment of 8.4 million dollars.

Installed at the Mtoni Substation in Unguja, the STATCOM system will regulate and stabilise voltage on the 100-megawatt main transmission line from mainland Tanzania, ensuring a consistent 132-kilovolt flow across Unguja and Pemba.

Dr. Mwinyi hailed the milestone as a “strategic investment in national progress,” noting that the system marks a turning point in Zanzibar’s journey toward energy security and economic independence.

“It is evident that the completion of this project will help address operational costs in our social and economic activities, especially for investors who sometimes had to rely on generators for long durations,” said Dr. Mwinyi during the launch event at Verde ground in Mtoni.

For years, overloaded underwater cables, aging infrastructure, and limited access in some areas had made power supply unreliable, particularly in rural Pemba and Unguja’s fast-growing southern districts. But with the installation of 55 concrete poles, 36 voltage regulators, 37 capacitor banks, and the STATCOM unit, that is now changing.

Powering growth and investment

According to Zanzibar Electricity Corporation (ZECO) Managing Director, Mr. Hajj Hajj, the new system has already stabilised voltage in both Unguja and Pemba, solving a long-standing technical challenge.

“Previously, electricity arriving from mainland Tanzania would drop to 114 kV instead of 132 kV, causing transformers to overwork and require frequent maintenance,” he said. “Now, with the situation stabilised, those costs have decreased, and funds have been saved.”

ZECO data shows voltage stabilisation equipment has been installed in eight locations in Unguja and three in Pemba, while capacitors have been deployed in 26 sites in Unguja and five in Pemba.

“This has led to stable electricity for end users, encouraging many citizens to engage in electricity-dependent projects,” Mr. Hajj added.

A vision anchored in policy and planning

Beyond the STATCOM system, the government is pushing ahead with broader reforms under the Zanzibar Electricity Sector Transformation and Access (ZESTA) project, which includes new 132-kV transmission lines from Welezo to Makunduchi and Matemwe, and the construction of new substations to extend affordable electricity to more citizens.

According to President Mwinyi, these projects will lower household connection costs from Sh200,000 to Sh100,000 and ensure that even small islands like Kokota and Njau in Pemba benefit from renewable power solutions.

“The goal is to ensure that all Zanzibar residents receive electricity service of the required quality,” President Mwinyi affirmed.

The Principal Secretary for Water, Energy, and Minerals, Joseph Kilangi, said these developments reflect Zanzibar’s broader energy ambitions.

“The improvements have increased electricity supply from 112 MW to 132 MW,” he noted. “Investment is increasing daily, necessitating major upgrades in infrastructure to meet this growing demand.”

Investing in the future

To sustain the momentum, Zanzibar has launched a new Energy Policy (2025), aligned with Vision 2050 goals. The policy promotes a diverse energy mix — solar, wind, marine, gas, and even nuclear — while building resilience to climate change.

“By 2025, electricity demand in Unguja was expected to reach 136.4 MW, with 95 MW already in use,” said Mr. Kilangi. “In Pemba, demand is at 84 percent of capacity. These figures highlight the urgent need to expand and modernise the grid.”

To meet future needs, the government has secured financing to build an 18 MW solar farm and a 40 MW battery storage system in Mtoni, while also preparing a 270 MW underwater cable from the mainland — a tenfold capacity boost for Unguja and Pemba.

A 120-meter wind tower is also planned in Makunduchi to measure wind potential ahead of a 200 MW wind project.

“A country cannot be built by foreigners; it must be built by its own people,” said Eric Kasalika, the Tanzanian-born engineer behind the STATCOM project. “We, the diaspora, can play a big role in that.”

Kasalika, who founded Novavis International after decades working in the U.S. utility sector, said his goal was to bring global expertise home. “This project shows what happens when the diaspora is trusted to deliver” he said.

Toward a smart energy future

ZECO’s next step is to modernise Zanzibar’s entire distribution network into a Smart Grid, improving monitoring, efficiency, and customer service.

President Mwinyi has also launched the Zanzibar Power Master Plan 2025–2050, a comprehensive blueprint for clean energy expansion and private-sector participation through public-private partnerships (PPPs) and a new net metering system.

“Energy is the backbone of social and economic development,” President Mwinyi emphasised. “With robust collaboration between the public and private sectors, we can ensure reliable, sustainable, and affordable electricity for every Zanzibari.”

As the STATCOM hums steadily at Mtoni and new substations rise across the archipelago, Zanzibar’s transformation is becoming visible in every lit home, every humming workshop, and every resort freed from the noise of diesel generators.

Hissham Abdukadir
Hissham Abdukadir

Mass Communication & PR Strategists (PR, Creative Content Design & Media Management)

Zanzibar International Trade Fair 2025/2026 Awaits You
Oer Business Summit Explores The Roadmap To Achieving The Sultanate’s Medium To Long Term Economic And Hr Goals
Zanzibar Taps Saudi Business Leader to Spearhead Gulf Investment Drive
Zanzibar at 61 : How the Archipelago Sails Towards Prosperity
Oman to boost investments in Zanzibar : Making Zanzibar as their gateway to investment in East Africa
Share This Article
Facebook Email Print
ByHissham Abdukadir
Mass Communication & PR Strategists (PR, Creative Content Design & Media Management)
Previous Article IMAGE Zanzibar International Trade Fair 2025/2026 Awaits You
Next Article ZRCP Zanzibar charts new course to turn economic growth into human capital dividend
- Advertisement -
Ad image

Trending

Zanzibar’s Economic Leap: A Comprehensive Analysis of the Zanzibar 2024/2025 Budget
Trending
Zanzibar Investment Act
What Zanzibar’s New Investment Law entails
Trending
about us

We are dedicated to inspiring innovation, fostering meaningful connections, and shaping a brighter future through insightful stories and impactful ideas.

  • Karibu ZiBi
  • About Us
  • Contact
  • Get Your Copy
  • Business
  • Tech
  • Advertise with us
  • Newsletters
  • Partners
  • Events

Find Us on Socials

© 2025 ZiBi Magazine | Powered by Zanziholics
Karibu ZiBi Magazine!
Subscribe to our newsletter and never miss our latest news, podcasts etc..
Subscription Form
Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?

Not a member? Sign Up