1.    ENERGY ACCESS AND RURAL ELECTRIFICATION
Investment Cost:USD 39 million
This component complements the Lower Songwe Hydropower Development Project by expanding electricity access to underserved rural communities, social institutions, productive sectors and emerging growth centres across the Songwe River Basin. The investment aims to accelerate socio-economic transformation, improve quality of life, support industrialisation, and strengthen climate-resilient development through increased utilisation of clean and renewable energy sources. 
Capacity
•    Electrification of villages, schools, health facilities, administrative centres and growth centres across the basin. 
•    Expansion of medium- and low-voltage distribution networks to rural and peri-urban communities. 
•    Increased access to reliable and affordable electricity for households, businesses and productive enterprises. 
•    Strengthened regional energy infrastructure supporting economic growth and social development. 

Key Interventions
•    Extension of rural electricity grids and distribution networks. 
•    Construction of substations, transformers and associated distribution infrastructure. 
•    Electrification of schools, health centres, water supply systems and other social institutions. 
•    Development of productive-use energy applications for agriculture, agro-processing, fisheries and small enterprises. 
•    Promotion of renewable energy technologies and clean energy solutions. 
•    Support for local enterprise development and energy-based economic activities. 
•    Capacity building for operation, maintenance and sustainable energy management. 

Expected Outcomes
•    Increased access to reliable, affordable and sustainable electricity services. 
•    Enhanced renewable energy utilization and improved energy security within the basin. 
•    Reduced dependence on traditional biomass and fossil fuel-based energy sources. 
•    Improved delivery of education, health, water supply and other social services. 
•    Increased productivity of agriculture, agro-processing, fisheries and small-scale industries. 
•    Growth of local businesses, entrepreneurship and employment opportunities. 
•    Improved livelihoods and household incomes across rural communities. 
•    Enhanced regional integration through strengthened energy connectivity and power trade. 
•    Attraction of private sector investments through Public-Private Partnerships (PPP) and related investment mechanisms. 
•    Reduced greenhouse gas emissions and contribution to national climate change mitigation objectives. 
•    Accelerated socio-economic transformation and sustainable development of the Songwe River Basin.