Dar es Salaam. On a sprawling 200-acre farm in Same District, Rasuli Mshana, a 43-year-old farmer, used to face sleepless nights worrying about how to irrigate his crops.

With tomatoes, onions, and capsicum thriving on his land, he relied on a diesel-powered water pump that guzzled Tsh480,000 worth of fuel weekly.

“The costs were unbearable,” Rasuli recalls. “By the end of a farming season, I would spend over Tsh 5.5 million just on fuel, and sometimes my crops still failed due to inconsistent water supply. I had no idea how I could keep the farm running sustainably.”

When Rasuli discovered SameKaya SACCOS, a community-based microfinance institution in his district, everything changed. Through their renewable energy loan program, Rasuli secured Tsh40 million to install a solar energy system on his farm.

Today, his farm runs on clean, reliable solar power. With 17 solar panels generating enough energy to pump water into a 160,000 liters tank, Rasuli has achieved what once seemed impossible.

“I can now farm throughout the year without worrying about diesel costs or drought,” Rasuli says proudly. Rasuli added the system has transformed his life and his business.

Tanzania is among the African countries with few farmers who apply modern irrigation systems and the solar-powered water pumps pose a breakthrough for small-scale farmers currently facing unpredictable rainfall. 

The National Sample Census of Agriculture 2019/20 shows that the majority of small-scale farmers are using traditional methods of farming with approximately 2 households in every 100 (1.8 percent) surveyed using water pumps while only 1.6 percent uses sprinklers with poverty contributing largely to the situation.

How microfinancing powers communities

SameKaya SACCOS, established in 2002, has long been a lifeline for the residents of Same District. While its primary mission was to provide financial access to underserved populations, the institution has evolved to address the specific needs of its community, including renewable energy financing.

By 2024, SameKaya SACCOS had disbursed over Tsh300 million in renewable energy loans, impacting more than 80 clients. These loans cater to farmers, small businesses, and households seeking affordable and sustainable energy solutions.

Julia, the CEO of SameKaya SACCOS, explains, “Renewable energy financing isn’t just about providing power it’s about enabling livelihoods. It’s about helping farmers like Rasuli, fishermen, and small business owners unlock their potential and reduce costs.”

People sowing onion seeds at Rasuli Mshana’s farm in Same, Kilimanjaro.PhotolZakia Mrisho

Solar Energy’s Ripple Effect

Rasuli’s success story is just one example of the transformative power of renewable energy microfinancing.

Neighbouring districts like Mwanga, Korogwe, and Simanjiro have seen similar impacts as more farmers adopt solar-powered irrigation systems

In Mwanga District, for instance, a group of 15 farmers collectively secured microloans to install a large-scale solar irrigation system for their cooperative. 

The system now irrigates over 30 acres of farmland, producing crops such as maize and onions. “Before this, we used to depend on rain-fed agriculture, which was unpredictable due to climate change,” says Grace Soka, the cooperative’s leader. 

“With solar irrigation, we can now plant all year round and meet market demands consistently.” The cooperative has since increased its income by 65% and reinvested profits into purchasing more land and equipment.

Similarly, in Korogwe District, where the climate is arid, a microfinance initiative helped 40 small-scale farmers access solar pumps. 

Before this shift, most farmers relied on water from distant rivers, transporting it manually or using expensive diesel pumps. 

Now, solar pumps ensure a steady water supply for crops. “I used to spend six hours daily fetching water,” recalls Faraji Mohamed, a farmer in Korogwe adding that the solar pump has given him time to focus on expanding his farm and spending time with his family

Businesses are increasingly turning to solar kits to improve their operations, breaking free from the constraints of costly and unreliable energy sources. 

The shift is not only boosting productivity but also driving innovation and sustainability in various sectors, such as fishing.

In Musoma Town, Mara Region, fishermen like Solima Manyama have embraced solar-powered lighting for night fishing, a transformation that has revolutionized their trade. 

Traditionally, fishermen relied on kerosene lamps to attract fish, a method fraught with challenges.

“Kerosene was costing me Tsh 150,000 per month,” Solima explains. “It wasn’t just about the cost. The fumes from the lamps caused health problems, and sometimes the lamps would fail, leaving us stranded in the dark water.”

Through a partnership between a local microfinance cooperative and a clean energy company, Solima obtained a loan to purchase solar-powered fishing lamps. 

These lamps are lightweight, durable, and designed to provide bright, steady light for hours.

Fishermen recharging solar lamps along the shores of Lake Victoria.Photo l Zakia Mrisho

Since making the switch, Solima’s operational costs have dropped by over 70%, while his catch has increased significantly. “The solar lamps attract more fish because the light is brighter and doesn’t flicker like kerosene lamps,” he says. “I’m able to sell more fish at the market, and the savings have helped me invest in better fishing nets.”

Challenges and opportunities

Despite the success of these initiatives, challenges remain. One persistent issue is the quality of solar equipment available in the market, some clients of Enokwe Finance Limited, another microfinance institution offering renewable energy loans, have reported receiving substandard products.

“To address this, we encourage organizations like TAREA Tanzania Renewable Energy Association) to conduct rigorous inspections and ensure vendors supply certified equipment,” says Remigius Hubert Kaisaki, Manager of Enokwe Finance.

Therefore, to ensure the quality of solar irrigation pumps, TAREA advocated with the Tanzania Bureau of Standards (TBS) to develop minimum performance standards for solar irrigation pumps.

According to TAREA, since 2015, it has been advocating for TBS to develop different renewable energy standards. In the year 2016, TBS enacted Solar Photovoltaic Standards and started implementing market surveillance. 

TAREA report highlights that the availability of Solar Photovoltaic Standards and market surveillance conducted by TBS has resulted in reduced substandard products in the Tanzanian market and increased trust of the end-users in solar photovoltaic technology as the public and private sectors have projects for on-grid solar of more than 400 MegaWatts in the pipeline.

Solar lamps ready for use along the shores of Lake Victoria.Photo l Zakia Mrisho

A Brighter Future

For Rasuli, the shift to solar energy has brought new found stability and prosperity. His story reflects the broader potential of renewable energy microfinancing to transform lives across Tanzania.

As Julia from SameKaya SACCOS emphasizes, “By empowering communities with clean energy, we’re not just solving today’s challenges. We’re investing in a sustainable future where everyone can thrive.”

The support of microfinance organizations to irrigation farmers benefits the farmers and the society around them and aligns with the GAovernment strategies to revamp irrigation agriculture in Tanzania.

According to the Ministry of Agriculture, Tanzania has more than 29.4 million hectares for sustainable irrigation activities but only 727,280.6 hectares equals 2.5% of the area utilized.

In the year 2024/25, The Ministry of Agriculture allocated TSh403.8 billion, which equals 33 percent of its budget for irrigation schemes aiming to have at least 1.2 million irrigation hectares up to 2025.

Minister of Agriculture Hussein Bashe while presenting the budget for his ministry for the year 2024/25 told the members of parliament that through the National Irrigation Commission, the ministry continues to construct and rehabilitate irrigation infrastructure in the country, including rain water harvesting reservoirs for irrigation.

For the year 2023/24 he said the irrigated area was 727,280.6 hectares, equivalent to 60.6% of the target of 1,200,000 hectares by the year 2025. 

“In the 2023/2024 fiscal year, construction and rehabilitation efforts commenced for irrigation infrastructure covering a total of 161,180.46 hectares. Once these projects are completed, they will increase the irrigated area by 256,185.46 hectares, bringing the total irrigated area to 983,466.06 hectares,” Bashe said.