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cooking, which causes severe eye
and lung conditions and puts a strain
on woodland resources.
Will energy access be
the next challenge for
Rwanda in the post -15
development agenda?
According to a study published in
the Economic Development and
Poverty Reduction Strategy (EDPRS)
in 2013, the lack of electricity in rural
areas is a serious constraint to the
growth of small and micro enterprises that represent 99.5% of private
sector firms, resulting in low return,
structural rural poverty, gaping rural-urban inequality and unrealized
economic potential.
While the Rwandan government’s
plan to extend the electricity grid to
cover 50% of households by 2017 is
commendable and will partly fill this
gap, 6 million people will still lack
electricity access, especially in rural
areas.
Since Rwanda’s hilly geography contributes to making grid-extension
expensive, the government recognized the need to invest in off-grid
energy solutions such as small hydro
plants and solar mini-grids, which
represent an attractive cost-effective
option for rural households in isolated areas.
This is a unique opportunity for the
private sector to play a bigger role in
filling the gap and serving millions of
un-served people in rural communities.
A team of indigo solar light distributors in Nyagatare district displaying the lamps after a promotional event sponsored by GVEP
With the UN Millennium Development Goals’ deadline approaching,
Rwanda can be proud of its achievements in meeting the targets in almost all areas. Rwanda’s success has
been driven by the country’s determination to use the Goals to develop
ambitious but concrete strategies,
prioritizing growth acceleration and
poverty reduction through economic
transformation, rural development,
productivity and youth employment,
as well as accountable governance.
As a result, over the last decade,
real GDP growth averaged at about
8% per annum; poverty rate has
dropped from 59% to 45%; more
than 95% of children now have access to primary education; infant
mortality dropped to 61%; and three
quarters of the population gained
access to drinking water.
While the Rwandan government
has a lot to celebrate, this couldn’t
have been achieved without the
commitment and hard work of entire communities that took charge
of their own lives and developed
home grown solutions. As a matter
of fact, decentralization has been a
cornerstone of Rwanda’s approach
to development and is proving more
successful than traditional top-down
methods.
Against this backdrop of success,
what is in store for the country, as
the World leaders meet to define
the Sustainable Development Goals
for the next decade? Could energy –
the missing MDG, the ‘enabler’ for
Development organization GVEP International has been working alongside Rwandan energy businesses
and local authorities to do just that:
to support the development and
growth of private sector initiatives
that deliver energy products and
services to some of those 6 million
people.
Water and sun are natural resources
that Rwanda enjoys in abundance.
Flow from steep mountain rivers can
be converted into electricity; solar
energy can be harvested through
the day to power photovoltaic home
systems, portable lamps and mobile
phone charging systems can provide
people, even in the remotest areas,
with affordable solutions to their energy needs.
Over the last 2 years GVEP has
been working with 270 solar phone
charging businesses, 5 distributors
of solar phone charging equipment,
30 solar home system distributors
Alphonsine Nyirahabimana a
​ fter getting the award (a cheque of 200
thousand rwandan francs) from the Minister of Trade and Commerce
all the Goals – provide a framework
for bringing development one step
further?
The critical role that energy plays in
eradicating poverty, increasing food
production, providing clean water,
improving public health, empowering women and addressing climate
change, has been widely recognized
and unanimously confirmed. First
through the Sustainable Energy for
All (SE4ALL) initiative and more recently through the United Nations
General Assembly’s declaration of
the Decade of Sustainable Energy
for All (2014 2024).
Securing sustainable energy for
all represents a real challenge for
Rwanda but also a unique opportunity for the Government, local communities and the country’s private
sector to work together to achieve
this goal.
Currently, only 22% of the population in Rwanda has access to electricity and that number is considerably inferior in rural areas, where
80% of the population lives.
Most of the rural population still relies on candles or kerosene for lighting which provide poor illumination,
as well as being health and fire hazards.
About 95% of households use biomass fuel (wood or charcoal) for
Nyundo Amahoro
Energy Hydro project
and 15 pico and small hydro developers. These businesses have been
offered a range of business training,
technology and marketing mentoring and access to capital advice.
Altogether these businesses have
provided sustainable and affordable
energy services to over 7600 people
in Rwanda.
Alphonsine Nyirahabimana, coming
and operating from Gisagara District
in Southern Province, is one such
entrepreneur reaping the benefits
of this new emerging market. At
the age of 33 she was congratulated
by the Minister of Trade and Commerce Hon. Francis Kanimba for
her successful solar phone charging
business and for providing vital services to her community. She started
her business in 2011 with no prior
skills and an initial capital of 50000
Rwf ($72). GVEP’s team showed her
where to find good technical equipment, how to keep records to run
her business profitably, how to market her services and provide good
customer relations. She now earns
up to 150000 Rwf (217$) monthly
and has even opened up a second
solar phone charging outlet. Her
business serves 120 people in neighbouring communities and avoids
them travelling long journeys to distant charging locations.
The benefits of supporting the solar
home system market go beyond increased income for micro businesses: it also extends to distributors
and installers. Amri Hategekimana,
Managing Director of Serve and
Smile, a local company contracted
by Azuri Technologies to distribute
the Indigo solar systems in Rwanda,
says that their distribution network
has created employment for over 30
sales agents and over 60 installers.
The income earned from each installation and the sale of scratch cards
has had a huge economic impact.
Mukankiko Dative, an Indigo solar
lights sales agent in Rulindo District, explains how the solar home
systems benefit all members of the
community. “Evening family outings
are now possible with Indigo solar
lights, without fear of ending stranded in the dark. With over 6000 units
already installed, many families in
rural areas can now work after dark
and charge their mobile phones.”
GVEP has also been supporting a
number of local private companies
to develop mini and pico hydropower plants. Amahoro Energy, a company operating in Rwanda, is developing a mini hydro power project
with an estimated capacity of 3 MW
along the Nyundo river. GVEP carried
out some feasibility studies and provided technical and capital access
advice, as well as business planning
and financing strategy support to
their team. Once finished, the plant
will connect 30,000 households with
electricity, providing access to reliable and sustainable energy to over
100,000 people.
These initiatives are just a few examples of the huge potential that bridging the energy access gap presents
to the private sector, investors and
government agencies alike. The next
decade will be crucial in finding innovative and more efficient ways to
deliver energy to off-grid communities and accelerate development in
all areas of human experience.