Despite significant investments in electrification, the majority of the population in Tanzania, as in other Sub-Saharan African countries, continue to rely on charcoal as their main source of energy, particularly for cooking.

• An estimated 90 percent of Tanzania’s energy needs are satisfied through the use of wood fuels.
• Charcoal is the single largest source of household energy in urban areas, as it is considered cheap and easy to transport, distribute, and store.
• Between 2001 and 2007, the proportion of households in Dar es Salaam using charcoal climbed from 47 percent to 71 percent.
• Approximately half of Tanzania’s annual consumption of charcoal takes place in the capital, Dar es Salaam, approximately 500,000 tons.
• At present, the contribution of Tanzania’s charcoal sector to employment, rural livelihoods, and the wider economy is estimated to be in the region of US$650 million per year, providing income to several hundred thousand people in both urban and rural areas.

The amount of charcoal consumed is expected to further rise in the coming years due to (a) rapid population growth; (b) continued urbanization; and (c) relative price increases of fossil fuel-based alternative energy sources. These trends will apply particularly to the urban centers in the country. Due to income constraints, switching to alternative fuels will only be an option for better-off households, but even among those economic groups, socio-cultural aspects will still result in the consumption of charcoal, albeit it at a lower level. The International Energy Agency (IEA) confirms similar trends are occurring in other Sub-Saharan African countries.

A policy note on Charcoal Production and Utilization in Tanzania was published in August 2009, which has received considerable attention among policy makers, development partners and the wider public in Tanzania and beyond. The Policy Note–which was developed through intensive stakeholder consultation–feeds directly into the ongoing policy dialogue on charcoal and provides information on feasible policy options that aim at sustainable charcoal production with economic benefits for rural communities, while at the same time providing guidance on possible fuel switching options. A short film documentary was produced, both in English and Swahili, to bring out the voices of stakeholders, making important information on the charcoal sector in Tanzania easily accessible and putting a human face on the policy debate. The video is intended to create the basis for an informed discussion about the future role of charcoal in Tanzania.

Based on the policy options that were put forward in the policy note, a second study was undertaken to develop a better understanding of the potential poverty and social impacts of these policy options and to test their feasibility by looking at the political economy of charcoal sector reform. The study, using both qualitative and quantitative research methods, took an innovative, highly inclusive and participatory approach to collect stakeholders' views on politically and socially sensitive issues that are otherwise not put forward for open discussion and provided a platform for mutual experience sharing, learning and awareness raising of critical (political, economic, social and environmental) issues surrounding  charcoal sector reforms.