increasing energy access for sustainable development in africa: e-parliament climate and energy...
TRANSCRIPT
Increasing energy access for sustainable development in
Africa:
E-Parliament Climate and Energy Hearing
Njeri Wamukonya
17-20 Nov 2006
External Shocks have contributedto deepen Energy Poverty
Areas of Ongoing or Imminent Power Shortfalls in SSA
MAURITANIAMALI
SENEGAL
GUINEA BISSAU
GUINEA
SIERRA LEONE
LIBERIA
COTE D’IVOIRE
BURKINA FASO
GH
AN
A
TOGO
BE
NIN
NIGERIA
NIGERCHAD SUDAN
CA
MER
OO
N
CENTRAL AFRICAN REPUBLIC
ERITREA
ETHIOPIA
DJIBOUTI
SOM
ALIA
KENYA
UGANDADEMOCRATICREPUBLICOF CONGO
RWANDA
BURUNDICO
NG
OGABON
EQUATORIAL GUINEA
SAO TOME AND PRINCIPE
ANGOLA
NAMIBIA
BOTSWANA
ZAMBIA
TANZANIA
MALAWI
ZIMBABWE
MO
ZAM
BIQ
UE
SOUTH AFRICA
SWAZILAND
LESOTHO
MA
DA
GA
SC
AR
MAURITIUS
COMOROSMAYOTTE (Fr.)
SEYCHELLES
CAPE VERDE
GAMBIA
Main Cause or TriggerNatural Causes (Droughts)
Financial Shocks (Unaffordable Oil Prices)System Disrupted by Conflict/Other
23 out of 48 SSA countries are currently vulnerable
e Commerce and Renewable Energy
(eCARE)
Objectives
...to expand access to telecommunications for urban development
...to eliminate the energy barrier to telecoms access by utilizing renewable energy
solutions
Why would e-Care work?
Empirical evidence: Entrepreneur-run business centers (BCs) are providing, at affordable rates:
•Voice telephony
•Internet connectivity
•Online content
•Value-added services
RE-powered BCs being proposed under eCARE can serve 3,000 - 5,000 customers
Small entrepreneurs can reach urban and peri-urban customers
But: small entrepreneurs serving telecoms markets need...
•Start-up or growth capital
•Business support services
•Supportive regulatory and policy framework
•Reliable power supplies
•Network access
SELL: Voice telephony; Internet connectivity & content; Value-added services
Select Franchisees
Sell network access
Provide business support services to Franchisees
Oversee management of eCARE Fund
Build strategic relationships
Small entrepreneurs: Franchisees
eCARE Franchisor
/(Telecom regional offices/units)
Management Board
A franchise business structure makes it happen
Example of a standard franchisee package…
How eCARE works: Technology
Each franchisee package is an integrated unit comprising:
Battery Bank
InverterRegulator
PV Array
DC Lights
SubscriberUnit
MFS
Computers
PV Array Subscriber Unit
Lights
InverterRegulator
Battery bankComputers
Printer/copier/etc
Phones
Item Cost (USD)
Telephone (3) 45
Desk top computers (1) 500
Renewable energy equipment
7,500
Subscriber terminal 400
Furniture 70
Container/Housing 1,500
Total 10,015
How eCARE works: FinancingCost structure of a standard franchisee package:
-Equity: minimum 10%; $500
-Debt (micro-finance): $4500
-Subsidy/grant: $5000
Financing plan (Franchisee level):
eCARE Facility: A fund that will be used to:
Finance the debt portion of the financing plan
Guarantee financing/co-financing from local financial institutions
Subsidize value-added services for socially important groups such as school children, farmers, etc
Roles of partner financial instns (1)Provide co-financing to qualifying franchisees:
direct/indirect equity contribution; and/or Debt financing
Loan Administration
Loan recovery
Monitor and coordinate performance of Franchisee through daily/weekly receipt into Accounts.
Maintain system for the payment to Telecom on behalf of the Franchisee
Apex Bank:Supervise and coordinate activities of participating Banks
Roles of partner financial instns (2)
Roles of Telecom
Extension of infrastructure to serve Business Centre connectivity
Network operation and maintenance
Day to day management of the project
Roles of local partner
Entrepreneur identification and screening- in collaboration with participating financial institutionsEnterprise development services for entrepreneurs- focused on enabling entrepreneurs to develop value-added products and services (economies of scope) for sustainability
Participating in overall project management and strategic planning/implementation- specializing in renewable energy applications aspects
Roles of UNEP
Supporting project management
Fund-raising and facilitation of critical relations between eCARE and:- ICT and RE equipment providers- national and international sources of development finance
Promoting enabling policies for accelerated diffusion of ICT applications of RE in off-grid areas
What can parliamentarians do?
Encourage budgetary allocation across sectors
Asanteni Sana!
Karibuni!