Publication: Making Power Affordable for Africa and Viable for Its Utilities
Date
2016-10
ISSN
Published
2016-10
Author(s)
Kojima, Masami
Trimble, Chris
Abstract
Examination of the financial viability
of power sectors in 39 countries in Sub-Saharan Africa shows
that only two countries have a financially viable power
sector, and only 19 cover operating expenditures.
Quasi-fiscal deficits average 1.5 percent of gross domestic
product. If operational inefficiencies can be eliminated,
power sectors in 13 countries become financially viable. In
the remaining two-thirds of the countries, tariffs will
likely have to be increased even after attaining benchmark
operational efficiency. Analysis of power tariffs in another
39 African countries shows that about half of them have
small first blocks with low lifeline rates. Data from
national household expenditure surveys in 22 African
countries show that the subsistence level of grid
electricity is affordable to the vast majority of the
population in many countries with low rates of access.
However, benefits of progressive tariffs are compromised by
the widespread practice of multiple connections, prompted by
high costs of grid connection. Examination of the sex of the
head of household shows that female-headed households are
not disadvantaged in electricity use once income and the
place of residence (urban or rural) are taken into account.
However, female-headed households tend to be poorer, making
it all the more important to focus on helping the poor.
Citation
“Kojima, Masami; Trimble, Chris. 2016. Making Power Affordable for Africa and Viable for Its Utilities. © World Bank, Washington, DC. http://hdl.handle.net/10986/25091 License: CC BY 3.0 IGO.”