TANESCO BOARD OF DIRECTORS

Tanzania Electric Supply Company Limited (TANESCO) is established under the Companies
Act, No.12 / 2002. This is a company limited by shares and the only shareholder is the
Government of the United Republic of Tanzania owning 100% shares. Therefore this is not like
other companies, being owned by the Government by 100%, it is also a Public Corporation,
governed under the Public Corporation Act, No. 2/1992 and its regulations.
Board of Directors
There are nine (9) Directors as provided for under Article 93 of the Company's Articles of
Association.
Board Chairman is appointed by the President of the United Republic of Tanzania while other
eight Directors are appointed by the Minister for Energy and Minerals. Out of eight Directors,
one represents the Shareholder (Treasury Registrar), one represents the Ministry of Energy and
Minerals while others are from private sector, independent businessmen and professionals.
Under the modern Corporate Governance much emphasis is put on combination of Members of
the Board, this has been taken care of in TANESCO more than 50% of the Board Members are
non- governmental officials. The following are the major responsibilities of the Board of Directors
derived from;
Memorandum and Articles of Association (MEMARTS)
i.
ii.

To manage business of the Company.

To exercise all powers of the Company to borrow money and mortgage or charge its
undertaking, property and uncalled capital or any part thereof and to issue debentures
and other securities whether outright or as collateral security for any debt, liability or
obligation of the Company.

THE PUBLIC CORPORATIONS ACT CAP 257 R.E 2002

i.
ii.

Board of directors has powers to appoint other officers on salary basis and on the terms
and conditions that deems fit
Board of Directors has powers to exercise supervision on the appointed management

GENERAL RESPONSIBILITIES OF THE BOARD OF DIRECTORS

i.
ii.
iii.
iv.
v.

Ensure TANESCO is commercially and technically viable, Further ensure control on

expenditure and asset management
Promote infrastructural efficiency and improve the customer base
Corporate governance and Financial Management
Training Innovation and Customer Care
To Manage TANESCO and give guidance without interfering day to day activities

The following are the Key Performance Indicators (KPI) of the Board of Directors derived from
The Minister and Permanent Secretary of Energy and Minerals directives during the
inauguration of the Board in 2011.

TANESCOS BOARD OF DIRECTORS - KEY PERFORMANCE INDICATORS

S/N
1.

OBJECTIVE

TARGET

Ensure TANESCO is commercially and

technically viable.

a. 96% of monthly bills are invoiced to customers in time

Further ensure control on expenditure and

asset management

b. 96% collection of revenue monthly

c. 10% collection of outstanding debts and write off of bad debts

2.

Promote infrastructural

a. 100,000 customers connections per annum.

efficiency and improve the customer base

b. 30 days service line connections to 95% of applied customers
c. To ensure electricity is available and reliable all the time
3.

Corporate
governance
Management

and

Financial

a. Approve corporate budget

b. Ensure annual accounts are audited and submitted in time.
c. Supervise Implementation of Audit recommendations and obtain clean Audit
report.
d. Review and approve corporate organization structure

e. Formulation of objective, implementation strategies

evaluation of management
1

and performance

4.

Training Innovation and Customer Care

a. Ensure >10% of staff are trained annually

b. Maintain employment and productivity ratio

5

Financial status.

To ensure that TANESCO improves its cash flows and becomes a

commercial viable utility

Infrastructure improvement

To improve the transmission and distribution infrastructures to enhance

power reliability.

Rural Electrification Projects

In collaboration with REA to ensure 30% of Tanzanians have access to

electricity by 2015.

Customer Care

Improve customer care services

Emergency Power Projects and Major Projects

To ensure emergency, short and long term projects for transmission,

generation and distribution are implemented as planned

10

Preparation of Home Grown proposal

Board to prepare home grown proposal to enhance TANESCO internal

reforms geared at more efficient services and productivity

Improvement of Procurement Management

Unit

To reform the PMU for efficiency and value for money procurements

11

Succession Plan

Board should ensure TANESCO establishes an effective succession plan

12

Organizational structure

Board to supervise and ensure the organization structure takes into

accounts staff rights and carrier development.

13

Projects Progress Reports

Board to provide Progress report on implementation of major projects on

quarterly basis