African Governments Need to Prioritise Off-Grid Energy in Africa’s Economic Recovery

• A new report by UCL and BBOXX advocates for governments in Africa to prioritise off-grid solar for rural electrification.
• Increased energy access has increased incomes in East African countries by about half of the monthly GDP per capita.

A new report by University College London’s (UCL) Engineering for International Development Centre and off-grid solar company BBOXX  notes that access to electricity should be promoted as the key driver for rural development in Africa. The report titled Off-Grid Energy and Economic Prosperity highlight the need for SSA governments and policymakers to focus on off-grid solar as the key to attaining sustainable economic development. The report notes that the region has the lowest electrification rate globally at just 47 per cent, and the pandemic has hampered efforts to improve electrification. The report proposes off-grid electrification to electrify rural communities, which will improve economic resilience and help communities recover from the pandemic.

Citing off-grid projects in Kenya, Mozambique, Rwanda, Tanzania and Uganda, the report notes that communities where off-grid had been deployed have seen monthly incomes increase by US$35, over half of the average monthly GDP per capita.

The report also proposes three recommendations to governments to help accelerate economic growth and resilience in the region through off-grid solutions:

1. Focus on investment in the off-grid energy sector by designing supportive policy environments to ensure consumers struggling are met with leniency in bill payments or a reduction in energy costs. Subsidies and incentives for renewables are essential here.
2. Develop policies beyond simply lighting homes and appliances and instead focus on using electricity for commercial, agricultural or industrial activities. This can strengthen local value chains, diversify livelihoods and reduce vulnerability to external shocks.
3. Create gender-inclusive energy policies and incorporate women’s experiences into policymaking and project planning. Policies should enhance financial inclusion and access to productive economic activities to foster more inclusive economic growth.

Priti Parikh, associate professor at UCL and co-author of the report, states, “we have found extensive evidence of the irrefutable link between greater access to solar energy in off-grid communities in SSA and economic development and prosperity. It is now vital that policies are developed and implemented on a local, national and inter-governmental level to ensure that off-grid solar energy remains front and centre.”