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THE LINKS BETWEEN ENERGY AND DEVELOPMENT: OBSERVATIONS FROM THE RURAL ELECTRIFICATION PROGRAMME IN ZIMBABWE Maxwell Mapako CSIR Natural Resources and the Environment P O Box 395 Pretoria 0001, South Africa Map of Zimbabwe © CSIR 2006 www.csir.co.za Context of Rural Grid Electrification in Zimbabwe • • • Focus on unelectrified rural centres, often called ‘growth points’ Local councils promote enterprise development and let small stands (plots) at growth points Households are scattered, which is the usual settlement pattern in rural Zimbabwe. These have to bear the full cost of connection from nearest growth point © CSIR 2006 www.csir.co.za History of Rural Grid Electrification • • • • • • • To meet post-independence expectations Generous donor support was available, utility could be subsidised Criteria mainly based on equity ESAP brought need for financial sustainability Criteria: improve electricity utilisation and cut costs (econ activities, proximity) Cross subsidy from levy on tariff 1%-6% End use support introduced © CSIR 2006 www.csir.co.za Study Outline • • • • • • Aim to understand the Expanded RE Programme (EREP) programme 73 small enterprises covered Confined to Southwest Zimbabwe (arid/hot) Focus: end user perceptions as these are poorly covered in official literature This is initial work on a larger study in the region To encompass FGDs and other stakeholder inputs © CSIR 2006 www.csir.co.za Enterprises encountered Only frequencies at least 10% listed Type of enterprise Frequency % Retailing 21 Bottle store 15 Grinding mill 15 Farming / ranching 12 Supply farm produce 10 © CSIR 2006 www.csir.co.za Enterprise prevalence views © CSIR 2006 www.csir.co.za Enterprise profitability views © CSIR 2006 www.csir.co.za Reported problems Only frequencies >4% listed here Problem faced Freq% Financial constraints 30 Power cuts 23 Transport / deliveries 10 Fuel Scarce 4 Lack of equipment 4 Lack of skills 4 © CSIR 2006 www.csir.co.za Impact of EREP Only frequencies #5 and more listed for After EREP figures Type of enterprise Before EREP After EREP Frequency% Frequency% None Retailing Grinding mill Bottle store Farming / ranching Butchery Welding 70 11 3 8 1 30 14 11 8 7 4 4 Irrigation Restaurant 3 - 3 3 © CSIR 2006 www.csir.co.za Fuel use patterns before/after EREP © CSIR 2006 www.csir.co.za Machinery use trends before/after EREP © CSIR 2006 www.csir.co.za Perceived benefits of EREP © CSIR 2006 www.csir.co.za Perceived negative aspects of EREP Only frequencies 4% and above listed Criticism Freq % Expensive 25 Slow 25 Power cuts 14 Not reaching everyone 8 None 7 Not participatory 4 Not transparent / bias 4 © CSIR 2006 www.csir.co.za What respondents would change Only frequencies of 4% and above listed Proposed change Freq % Financing approach Improve equipment supply Speed up implementation Install Electricity No response None Education, skills Improve efficiency People must payback © CSIR 2006 18 15 14 12 8 8 4 4 4 www.csir.co.za Community benefits example Chasiyatende Primary School in Chivi District, near Masvingo, a town in Masvingo Province in the Southeast of Zimbabwe Arid and famine-prone area. The headmaster registered the school as a milling company, thereby qualifying for a maize allocation from the central Grain Market Board. The school grinds, bags, and markets the maize meal to the community. School had reduced / waived fees in hard times and built own classrooom blocks. Approach is being replicated. © CSIR 2006 www.csir.co.za Concluding remarks There is growing consensus that focusing on economic activities in the provision of energy services is an effective way to contribute to reduction of poverty. The experience in the expanded rural electrification programme in Zimbabwe seems to lend weight to this view and deserves further study as it evolves since it undoubtedly holds lessons for other countries in the region. Policy innovation has a crucial role in providing a conducive environment for novel approaches to implementation Flexibility and willingness to learn lessons and incorporate them into ongoing programmes evident © CSIR 2006 www.csir.co.za Thank you