Survey team

Business owners in Tanzania are willing to pay more for an improved electricity supply

Research Brief
1 November 2023

Tensay Hadush Meles, Razack Lokina, Erica Louis Mtenga, Julieth Julius Tibanywana

Topic:  Stated Preferences with Survey Consequentiality and Outcome Uncertainty: A Split Sample Discrete Choice Experiment

Research questions: How much are Tanzanian business enterprises willing to pay (WTP) for a better quality of electricity supply?

Key Messages

  • Business enterprises strongly value an improved electricity supply, urging policymakers and utilities to minimize power outages and revise tariffs accordingly.

  • Business enterprises in Tanzania are WTP approximately 9% more for an additional reduction in outage frequency per month, 4% more for an hour reduction in duration of outages, and 16% more for 24-hour advanced outage notification, on top of the existing highest tariff rate of 350 TZS/kWh (US$ 0.15/kWh).

Publication reference
MS 513 DP 23-16
Publication | 20 November 2023