Making Power Affordable for Africa and Viable for Its Utilities
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...
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26821895/making-power-affordable-africa-viable-utilities http://hdl.handle.net/10986/25091 |
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okr-10986-250912021-06-14T10:08:27Z Making Power Affordable for Africa and Viable for Its Utilities Kojima, Masami Trimble, Chris POWER PUBLIC UTILITIES FINANCIAL VIABILITY ELECTRICITY 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. 2016-09-28T16:17:28Z 2016-09-28T16:17:28Z 2016-10 Report http://documents.worldbank.org/curated/en/2016/09/26821895/making-power-affordable-africa-viable-utilities http://hdl.handle.net/10986/25091 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: ESMAP Paper Africa Africa |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
POWER PUBLIC UTILITIES FINANCIAL VIABILITY ELECTRICITY |
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POWER PUBLIC UTILITIES FINANCIAL VIABILITY ELECTRICITY Kojima, Masami Trimble, Chris Making Power Affordable for Africa and Viable for Its Utilities |
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Africa Africa |
| description |
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. |
| format |
Report |
| author |
Kojima, Masami Trimble, Chris |
| author_facet |
Kojima, Masami Trimble, Chris |
| author_sort |
Kojima, Masami |
| title |
Making Power Affordable for Africa and Viable for Its Utilities |
| title_short |
Making Power Affordable for Africa and Viable for Its Utilities |
| title_full |
Making Power Affordable for Africa and Viable for Its Utilities |
| title_fullStr |
Making Power Affordable for Africa and Viable for Its Utilities |
| title_full_unstemmed |
Making Power Affordable for Africa and Viable for Its Utilities |
| title_sort |
making power affordable for africa and viable for its utilities |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/09/26821895/making-power-affordable-africa-viable-utilities http://hdl.handle.net/10986/25091 |
| _version_ |
1764458350596063232 |