Tanzanian liquefied petroleum gas (LPG) firm, Taifa Gas, plans to set up a $100 million energy plant in Zambia through a joint venture with a local company, Delta Marimba.

The plant, to be established in the northern Zambia, will start production 24 months after regulatory approvals from the Zambian authorities, including the Environmental Impact Assessment.

Taifa Gas says it will explore more LPG opportunities such as cooking gas.

Read: Tanzania pegs cost of LNG project at $42b

Once operational, the LPG power plant is expected to add 100 megawatts to the Zambian national grid.

Taifa Gas Executive Director Hamis Ramadhani told local media on Monday that the investment was primarily driven by favourable investment climate and policies, created by Tanzania President Samia Suluhu Hassan and Zambia counterpart Hakainde Hichilema.

During the event, Taifa Group Chairman Rostam Aziz said the two firms were taking advantage of the present better policies allowing for growth of strong economies.

“This is the right time for our countries to value issues of the economy because it is the economy that will transform the lives of our people,” Taifa Group chairman Rostam Aziz said.

A Delta Marimba representative, Padmore Muleya, said the partnership was important as it heralds greater developments for the two neighbouring countries.

“Solutions have come from a partner who understands where we come from,” he added citing the historical ties between Tanzania and Zambia.

Zambia’s current energy demand is slightly above 3,000 megawatts, he said, with an output of 3,100MW.