Enabling reforms: Analyzing the political economy of the charcoal sector in Tanzania

With about 95 percent of all households in urban areas relying on charcoal to meet energy needs, charcoal is one of the most important energy sources in Tanzania. High population growth rates coupled with accelerated urban development and relative cost increases of alternative fuels indicate that the importance of charcoal is unlikely to decline in the near future. Systemic initiatives to render the sector more environmentally and economically sustainable are missing or have remained largely ineffective. A weak formal governance framework as well as regulatory overlaps and gaps are often identified as principal reasons. Nonetheless, the underlying political economy supporting and maintaining the status quo is only poorly understood and no attempt has so far been made for a formal analysis and documentation. Applying an established methodology, this article provides a unique analysis of the political economy of the charcoal sector in Tanzania. It documents social, political, and economic explanations that existed as anecdotal evidence only and explains why a reform dialogue needs to be sensitive. While the analysis focuses on Dar es Salaam, Tanzania, it shows that findings apply to other countries in Sub-Saharan Africa facing similar challenges. It provides a comprehensive example for approaching charcoal sector reforms, requiring identification of the problems and an open dialogue within and among stakeholders, new policies and a subsequent strategic decision clearly stating overarching goals and specific objectives. (C) 2012 International Energy Initiative. Published by Elsevier Inc. All rights reserved.