Lighting Africa: Tackling energy poverty, one household at a time

More than 600 million people in Sub-Saharan Africa do not have access to grid electricity. In Nigeria, sub-Saharan Africa’s largest economy, 50 million people with grid-access continue to rely heavily on fossil fuels as an alternative source of energy according to 2016 Nigeria Bureau of Statistics report. Forty-three percent of these households connected to the grid still make use of batteries and kerosene as primary sources of lighting, while 73 percent of households in grid-connected areas use rechargeable lamps, kerosene and dry cell batteries as back-up, depleting natural resources, polluting the environment and contributing to climate change. And still, more than 20 million households are completely without power.

Over the years, successive governments in Nigeria have made attempts to solve the myriad issues plaguing the energy sector. In its 2018 national budget, the Nigerian government allocated nearly N682 trillion (about US$ 1.8 billion) to the Ministry of Housing, Works and Energy, signaling the importance of stabilizing the power sector. The government has also expanded the country’s energy mix options to introduce renewable energy sources to the fore, and even restructured the Rural Electrification Agency (REA) to position renewable energy as a viable option for off-grid communities. While sincere, these past efforts have failed to provide a lasting solution to the extraordinary need for reliable power. With the demand for energy high and grid inconsistency a reality, the market potential for renewable energy will only continue to grow.

But African governments alone cannot provide the much-needed solution to Sub-Saharan Africa’s energy crisis. The private sector and development institutions have a vital role to play to end energy poverty in Africa, and they are making great investments. For instance, All On, an impact investor, is providing capital to meet the scale-up needs of energy enterprises of various sizes.

Also, the Africa-EU Energy Partnership (AEEP) supports wind, hydro, geothermal and biomass energy projects through the Africa Renewable Energy Fund (AREF). In partnership with the International Renewable Energy Agency (IRENA), Access Power Program provides support to local power project developers through an Access Co-Development Facility. The African Development Bank’s Sustainable Energy Fund for Africa (SEFA), a US$60 million multi-donor fund, supports small and medium scale renewable energy and energy efficiency projects in Africa. And finally, Lighting Africa, a World Bank Group initiative, works to stimulate the Nigerian economy by catalyzing a market for better, cleaner, and safer off-grid lighting and energy products to the rural and semi-urban populations with limited grid access.

Unique from other initiatives, Lighting Africa works to create a commercial market for quality off-grid energy products and includes activities across numerous countries in Sub-Saharan Africa. In Nigeria, Lighting Africa works with manufacturers, distributors, retailers, and financial intermediaries to introduce quality-verified solar lanterns and solar home systems to low-income households. In the process, the entire value chain of a largely untapped, but viable commercial market is activated.  Top off-grid energy players collaborating with the Lighting Africa Program in Nigeria include A4&T, d.light, Greenlight Planet, Omnivoltaic Power, Smarter Grid, Villageboom, a host of distributors and other players.

Working closely with microfinance institutions like LAPO, Grooming Centre, Susu, Olive, Forward, Riverside, Agosasa, Ilishan, UNAAB, and Alekun, Lighting Africa Nigeria helps low-income communities (majority women) access funds to purchase solar lanterns and home systems, often times, their first renewable source of energy. Lighting Africa also trains technicians across several states to provide after sales support to these solar products after the warranty period and conducts consumer education campaigns to create awareness for quality products. By providing people the option to work beyond just the daylight hours, increasing economic activities, and building a viable new industry in renewable energy, Lighting Africa is changing the shape of the nation’s energy access landscape. It is helping to light up the nooks and crannies of Nigeria in the process, bringing with it economic improvements and opportunities.

FRANK UZUEGBUNAM