Solar boosting economic prospects for rural East Africans

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Solar boosting economic prospects for rural East Africans

  • New report from GOGLA, the global association for the off-grid solar energy industry, shows an overwhelming majority (94%) of people living with off-grid solar home systems reporting improvements to their quality of life

  • 34% of households report being more economically active with 28% making an additional $46 per month on average

 

Nairobi, Kenya, Monday 16th September 2019 Households using small scale-solar power in East Africa have been found to generate more income, have better health, study more and have a higher quality of life than before living with the clean, renewable energy technology. This is based on findings from ‘Powering Opportunity in East Africa: Proving Off-Grid Solar is a Power Tool for Change’, a new report released by - GOGLA, the global association for the off-grid solar energy industry.

The research, funded by UK aid from the UK government and conducted by Altai Consulting, is based on data collected from 1,419 small-scale solar home system owners in Kenya, Mozambique, Rwanda, Tanzania and Uganda who purchased their system in the second half of 2017.

With over 30 million people now living with off-grid solar in East Africa, the research was conducted to further understand the benefits of living with this power tool of change. 

As the world’s political leaders meet in New York to accelerate action on climate change and the world's Sustainable Development Goals (SDG’s) including clean, affordable energy access, the report reveals that this clean technology is reducing reliance on fossil fuels and cutting CO2 emissions. Off-grid solar is also enabling a third of households to be more economically active, extending business opening hours, giving customers more time for economic activity and helping rural East Africans start new business activities.

28 per cent of households report generating an additional income of $46 a month on average, the equivalent of 14 per cent of the monthly gross national income of the households in the countries studied. Overall, the additional work undertaken thanks to off-grid solar is the equivalent of two FTE (full-time-equivalent) jobs for every ten solar home systems sold, contributing to improved income prospects and a better quality of life for the informal workforce, especially in rural areas.

Patrick Tonui, GOGLA’s East Africa Representative said: 

It is encouraging to see how far we have come as a region in adopting off-grid solar. Governments, businesses and investors across the region have played a critical role in ensuring that today more off-grid communities are now living with clean, affordable energy than any time in history. Predominantly used by low-income households, off-grid solar is genuinely proving a power tool for change and enabling people to build better lives and livelihoods. Governments integrating off-grid solar into their energy plans, removing tax and other barriers to uptake are truly improving the lives of their citizens in more ways than one. In fact, we’re seeing off-grid solar tackle ten of the world’s 17 Sustainable Development Goals, with its lasting impact to the economy, society and environment.”

The Head of UK’s Department for International Development in Kenya, Julius Court said:  “We are pleased to have supported this research and it is great to see the benefit solar energy is having on livelihoods in East Africa.  In Kenya, the UK government is involved in a number of sustainable energy initiatives that improve the lives of people across the country. The opportunities and benefits are significant as we can clearly see in this report.”

Solar based systems, says the research, are mainly used by low-income households. The report shows that a significant 59 per cent of households that purchased them declared they were living on less than $3.20 per day and 81 per cent on less than $5.50 per day.

Of those surveyed, 94 per cent feel their quality of life improved since they purchased the solar system, while 95 per cent of customers say they would recommend their product to a friend or relative. In addition, 89 per cent indicate they feel healthier as harmful kerosene lamps are no longer in use, and 86 per cent report their school-going children have more time to study. 

But, while most countries in East Africa have integrated off-grid solar in their electrification planning to ensure universal energy access, there are still many barriers to mainstreaming this technology in rural East Africa; making clean affordable energy access for all by 2030 unlikely.

Patrick Tonui, GOGLA’s East Africa Representative added: 

138 million East Africans still live without access to electricity. Our findings show that this means they are losing out on big benefits to their quality of life, wellbeing, health, education and income. Off-grid solar is unlocking opportunity and mobility for millions, but we’re seeing four times as many people living without; which ultimately is keeping them locked into poverty and putting pressure on Government. As political leaders look to accelerate the meeting of SDG’s by 2030, the evidence is now here that off-grid solar is a very powerful tool for change. We urge Governments to see the long term social, economic and environmental benefits of mainstreaming access to this phenomenally powerful technology.”

To mainstream off-grid solar, GOGLA is recommending that Governments in East Africa follow the lead of Kenya, where uptake is high with at least 12 million people currently using off-grid solar solutions, and remove import duties and other taxes whilst enforcing quality standards to ensure customers have access to affordable, high quality products.

Globally, more than 250 million people have benefitted from off-grid solar, but just under 850 million remain locked into poverty without access to electricity. Political leaders have committed to ensure no one is living without access to electricity by 2030, a core SDG.

The full report is available at gogla.org/poweringopportunity.

For media enquiries please contact:
Sascha Brandt, s.brandt@gogla.org
Communication Manager, GOGLA
+31 620 157 031

Corrie Mwende, c.mwende@gogla.org 
Public Relations Consultant, GOGLA East Africa
+254 726 655 250

 

Notes to Editors: 

  • 138 million people in rural East Africa live without electricity. 

  • Burundi: 9.9m; Kenya: 17.99m; Mozambique: 21.53m; Rwanda: 8m; South Sudan: 9.4m; Tanzania: 38.5m; Uganda: 33.43m 

  • According to the World Bank (2018), the monthly gross national income (GNI) per capita in the countries studied is: Kenya $1,620, Mozambique $440, Rwanda $780, Tanzania $1,020, Uganda $620. 

  • 94% report that their quality of life improved as they feel healthier (89%), safer (91%) or because their children have more time to study (86%). 

  • Off-grid solar tackles 10 of the world’s 17 Sustainable Development Goals, with its lasting impact to the economy, society and environment. There are direct and indirect links to SDG1 (No poverty), 2 (zero hunger), 3 (good health and wellbeing), 4 (quality education), 5 (gender equality), 7 (affordable and clean energy), 8 (decent work and economic growth), 9 (industry innovation and infrastructure), 13 (climate action) and 17 (partnerships).

  • For households featured in the survey that undertake more economic activity due to increased hours of light and time savings the two main activities are selling a variety of products, followed by farming.

  • For households that use their solar home systems in a business, the three main types of businesses are a phone charging business, followed by a shop/stall, or a bar/restaurant.

  • 59% of households surveyed and who purchased Solar Home Systems declared they were living on less than $3.20 per day and 81% less than $5.50 per day.

  • The research, funded by UK aid from the UK government and conducted by Altai Consulting, was based on data collected from over 1,419 small-scale solar home system owners in Kenya, Mozambique, Rwanda, Tanzania and Uganda.

 

About GOGLA

GOGLA is the global association for the off-grid solar energy industry. Established in 2012, GOGLA now represents over 150 members as a neutral, independent, not-for-profit industry association. Its mission is to help its members build sustainable markets, delivering quality, affordable products and services to as many households, businesses and communities as possible across the developing world. The products and solutions that GOGLA members sell transform lives. They improve health and education, create jobs and income opportunities and help consumers save money. To find out more, go to www.gogla.org.

About Altai Consulting

Altai Consulting provides strategy consulting & research services to private companies, governments and public institutions in developing countries. Their teams operate in over 50 developing countries in Africa, the Middle East and South Asia. For more information please consult the Altai Consulting website: www.altaiconsulting.com 

 
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