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Publication
Speaking truth to power: why energy distribution, more than generation, is Africa’s poverty reduction challenge
Published by: ODI
About
Energy is important to reduce poverty, but increasing electricity generation alone will not solve the problem. In this paper, ODI uncovers that most investment in electricity generation in Africa is not geared towards serving the basic energy needs of the poor, but is instead focused on providing power to growing industries and existing consumers. This paper, therefore, argues that tackling energy poverty will have less to do with ambitious expansion of electricity capacity, and more to do with ambitious distribution of energy services to poor people. A second key conclusion is that distributed, clean energy interventions – both renewable energy systems and clean cookstove technologies - are best suited to tackling energy poverty – and poverty more generally. It is here that we should be focusing energy investment, to tackle poverty and close Africa’s energy gap.
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General Information
| SDGs |   |
|---|---|
| Published | 2015 |
| Thematic Area | Inclusive economic growth for poverty eradication Sustainability |
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End poverty in all its forms everywhere
Eradicating poverty in all its forms remains one of the greatest challenges facing humanity. While the number of people living in extreme poverty has dropped by more than half – from 1.9 billion in 1990, to 836 million in 2015 – too many people are still struggling to meet the most basic human needs.
Globally, more than 800 million people are still living on less than $1.25 a day; many lack access to adequate food, clean drinking water and sanitation. Rapid economic growth in countries like China and India has lifted millions out of poverty, but progress has been uneven. Women are disproportionately affected; they are more likely to live in poverty due to unequal access to paid work, education and property.
Progress has also been limited in other regions, such as South Asia and sub-Saharan Africa, which account for 80 percent of the people living in extreme poverty. This rate is expected to rise due to new threats brought on by climate change, conflict and food insecurity.
The Sustainable Development Goals (SDGs) are a bold commitment to finish what we started, and end poverty in all forms and dimensions by 2030. In order to achieve the SDGs, we must target those living in vulnerable situations, increasing access to basic resources and services, and support communities affected by conflict and climate-related disasters.
Ending poverty is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across multiple goals.
Learn more about the targets for Goal 1.
End poverty in all its forms everywhere
Eradicating poverty in all its forms remains one of the greatest challenges facing humanity. While the number of people living in extreme poverty has dropped by more than half – from 1.9 billion in 1990, to 836 million in 2015 – too many people are still struggling to meet the most basic human needs.
Globally, more than 800 million people are still living on less than $1.25 a day; many lack access to adequate food, clean drinking water and sanitation. Rapid economic growth in countries like China and India has lifted millions out of poverty, but progress has been uneven. Women are disproportionately affected; they are more likely to live in poverty due to unequal access to paid work, education and property.
Progress has also been limited in other regions, such as South Asia and sub-Saharan Africa, which account for 80 percent of the people living in extreme poverty. This rate is expected to rise due to new threats brought on by climate change, conflict and food insecurity.
The Sustainable Development Goals (SDGs) are a bold commitment to finish what we started, and end poverty in all forms and dimensions by 2030. In order to achieve the SDGs, we must target those living in vulnerable situations, increasing access to basic resources and services, and support communities affected by conflict and climate-related disasters.
Ending poverty is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across multiple goals.
Learn more about the targets for Goal 1.
The SDG Fund response
The SDG Fund supports initiatives that tackle poverty from a multisectoral perspective and address the following dimensions:
- Create opportunities for good and decent jobs and secure livelihoods
- Support inclusive and sustainable business practices
- Promote better government policies and fair and accountable public institutions
For example,
- In Bangladesh, women are often employed at the lower end of the productivity scale. The labor force participation of rural women is only 36.4% compared to 83.3% of men. Creating employment and income generating opportunities for women and enhancing their access to social protection is helping reduce their poverty and vulnerability. The SDG Fund’s programme is working in the Kurigram district in the Northwest and the Satkhira district in the coastal belt, both regions that are strongly affected by seasonal hunger and extreme poverty. More than 2,500 women have been employed through the programme and were able to open individual savings banking accounts.
- In Côte d'Ivoire, the SDG Fund is working to reduce poverty by creating economic and job opportunities in the San Pedro region, particularly for women and youth. An integrated approach including training, engaging with the government and other leaders on reforming rural land tenure practices, and creating new income generating activities. The programme is helping increase vulnerable groups' access to information about their rights and providing them with legal assistance. The programme also focuses on ensuring food security and improving nutrition in the poorest households.
- In Honduras, the SDG Fund supports the revitalization of the Lenca culture and micro-businesses led by women and youth. In the Lenca region, the SDG Fund backs training, business articulation, sustainable tourism promotion and international investment.
The SDG Fund response
The SDG Fund supports initiatives that tackle poverty from a multisectoral perspective and address the following dimensions:
- Create opportunities for good and decent jobs and secure livelihoods
- Support inclusive and sustainable business practices
- Promote better government policies and fair and accountable public institutions
For example,
- In Bangladesh, women are often employed at the lower end of the productivity scale. The labor force participation of rural women is only 36.4% compared to 83.3% of men. Creating employment and income generating opportunities for women and enhancing their access to social protection is helping reduce their poverty and vulnerability. The SDG Fund’s programme is working in the Kurigram district in the Northwest and the Satkhira district in the coastal belt, both regions that are strongly affected by seasonal hunger and extreme poverty. More than 2,500 women have been employed through the programme and were able to open individual savings banking accounts.
- In Côte d'Ivoire, the SDG Fund is working to reduce poverty by creating economic and job opportunities in the San Pedro region, particularly for women and youth. An integrated approach including training, engaging with the government and other leaders on reforming rural land tenure practices, and creating new income generating activities. The programme is helping increase vulnerable groups' access to information about their rights and providing them with legal assistance. The programme also focuses on ensuring food security and improving nutrition in the poorest households.
- In Honduras, the SDG Fund supports the revitalization of the Lenca culture and micro-businesses led by women and youth. In the Lenca region, the SDG Fund backs training, business articulation, sustainable tourism promotion and international investment.
- By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
- By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
- By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
- By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters
- Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions
- Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions
- By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
- By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
- By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
- By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters
- Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions
- Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions
Ensure access to affordable, reliable, sustainable and modern energy for all
Between 1990 and 2010, the number of people with access to electricity has increased by 1.7 billion, and as the global population continues to rise so will the demand for cheap energy. A global economy reliant on fossil fuels and the increase of greenhouse gas emissions is creating drastic changes to our climate system. This is having a visible impact on every continent.
However, there has been a new drive to encourage alternative energy sources, and in 2011 renewable energy accounted for more than 20 percent of global power generated. Still one in five people lack access to electricity, and as the demand continues to rise there needs to be a substantial increase in the production of renewable energy across the world.
Ensuring universal access to affordable electricity by 2030 means investing in clean energy sources such as solar, wind and thermal. Adopting cost-effective standards for a wider range of technologies could also reduce the global electricity consumption by buildings and industry by 14 percent. This means avoiding roughly 1,300 mid-size power plants. Expanding infrastructure and upgrading technology to provide clean energy sources in all developing countries is a crucial goal that can both encourage growth and help the environment.
Sustainable energy is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 7.
Ensure access to affordable, reliable, sustainable and modern energy for all
Between 1990 and 2010, the number of people with access to electricity has increased by 1.7 billion, and as the global population continues to rise so will the demand for cheap energy. A global economy reliant on fossil fuels and the increase of greenhouse gas emissions is creating drastic changes to our climate system. This is having a visible impact on every continent.
However, there has been a new drive to encourage alternative energy sources, and in 2011 renewable energy accounted for more than 20 percent of global power generated. Still one in five people lack access to electricity, and as the demand continues to rise there needs to be a substantial increase in the production of renewable energy across the world.
Ensuring universal access to affordable electricity by 2030 means investing in clean energy sources such as solar, wind and thermal. Adopting cost-effective standards for a wider range of technologies could also reduce the global electricity consumption by buildings and industry by 14 percent. This means avoiding roughly 1,300 mid-size power plants. Expanding infrastructure and upgrading technology to provide clean energy sources in all developing countries is a crucial goal that can both encourage growth and help the environment.
Sustainable energy is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 7.
The SDG Fund response
The SDG Fund programmes promote the use of renewable and sustainable sources of energy. At the same, time they promote construction techniques that are more energy efficient.
For example,
- In Bolivia, a food security and nutrition programme is promoting the use of solar energy in the food production. Farmers are able to produce at a lower cost and reduce their CO2 emissions.
- In Mozambique, the SDG Fund programme is supporting, through UNIDO and national partners, a technology exchange with South African National Cleaner Production Center. This government facility promotes resource efficient and cleaner production methodologies to assist industry in lowering costs through reduced energy, water and materials usage, and waste management.
The SDG Fund response
The SDG Fund programmes promote the use of renewable and sustainable sources of energy. At the same, time they promote construction techniques that are more energy efficient.
For example,
- In Bolivia, a food security and nutrition programme is promoting the use of solar energy in the food production. Farmers are able to produce at a lower cost and reduce their CO2 emissions.
- In Mozambique, the SDG Fund programme is supporting, through UNIDO and national partners, a technology exchange with South African National Cleaner Production Center. This government facility promotes resource efficient and cleaner production methodologies to assist industry in lowering costs through reduced energy, water and materials usage, and waste management.
- By 2030, ensure universal access to affordable, reliable and modern energy services
- By 2030, increase substantially the share of renewable energy in the global energy mix
- By 2030, double the global rate of improvement in energy efficiency
- By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
- By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States, and land-locked developing countries, in accordance with their respective programmes of support
- By 2030, ensure universal access to affordable, reliable and modern energy services
- By 2030, increase substantially the share of renewable energy in the global energy mix
- By 2030, double the global rate of improvement in energy efficiency
- By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
- By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States, and land-locked developing countries, in accordance with their respective programmes of support
Economic growth has to be inclusive to ensure the wellbeing of the entire population. Inclusive growth requires full respect for human rights.
Inclusive growth generates decent jobs, gives opportunities for all segments of society, especially the most disadvantaged, and distributes the gains from prosperity more equally.
The first priority is to create opportunities for good and decent jobs and secure livelihoods for all. This will make growth inclusive and ensure that it reduces poverty and inequality. Better government policies, fair and accountable public institutions, and inclusive and sustainable business practices are essential parts of a Post-2015 agenda.
A second priority is to strive constantly to add value and raise productivity. Some fundamentals will accelerate growth everywhere:
- Skills development
- Supportive policies towards micro, small, and medium enterprises
- The capacity to innovate and absorb new technologies
- The ability to produce a higher quality and greater range of products
- Infrastructure and other investments
Third, countries must establish a stable environment that enables business to flourish. Business wants a level playing field and to be connected to major markets. It also wants a simple regulatory framework that makes it easy to start, operate, and close a business. Small and medium firms that employ the most people are especially restricted by complicated regulations that can breed corruption.
Fourth, in order to bring new prosperity and new opportunities, growth must also usher in new ways to support sustainable consumption and production. It must also enable sustainable development.
The SDG Fund response
The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:
- Create opportunities for good and decent jobs and secure livelihoods
- Support inclusive and sustainable business practices
- Promote better government policies and fair and accountable public institutions
For example:
- In Mozambique, Sierra Leone and Ivory Coast, the SDG Fund will work with mineral extractive industries to generate economic growth and opportunities for the whole population. For example, in Mozambique, analysis indicates that the 5 largest projects in the country with an invesment of USD $3.4 billion, will generate only 33,000 direct jobs.
- In Bangladesh and in Tanzania, the SDG Fund will contribute to the construction of the social protection systems and universal social safety nets, with special attention to the poorest women.
- In Honduras the SDG-F will support the generation of income through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
- The armed conflict in Colombia has damaged production, institutions, food security, and social trust. Through the sustainable agricultural production of indigenous crops and their international commercialization, the SDG-F will create employment, ways of life, better nutrition, and, most importantly, peace in Cauca - one of the zones most affected by the long lasting conflict.
- In Peru the SDG Fund will contribute to establishing an inclusive value chain in the production of quinoa and other Andean grains, so that the increase of demand in the international market can convert into economic and social improvements of currently vulnerable producers.
Current SDG Fund inclusive economic growth for poverty eradication programmes:
Previous programmes:
Two of the MDG-F thematic windows encouraged practices related with inclusive growth, especially providing opportunities for the most vulnerable: youth, employment and migration and private sector and development. Some programmes on culture and development also tried to boost the economic potential of cultural industries to create livelihoods. Lessons learned from these programmes have been translated into a broader perspective on inclusive growth as a means of poverty reduction.
[summary] => [format] => full_html [safe_value] =>Economic growth has to be inclusive to ensure the wellbeing of the entire population. Inclusive growth requires full respect for human rights.
Inclusive growth generates decent jobs, gives opportunities for all segments of society, especially the most disadvantaged, and distributes the gains from prosperity more equally.
The first priority is to create opportunities for good and decent jobs and secure livelihoods for all. This will make growth inclusive and ensure that it reduces poverty and inequality. Better government policies, fair and accountable public institutions, and inclusive and sustainable business practices are essential parts of a Post-2015 agenda.
A second priority is to strive constantly to add value and raise productivity. Some fundamentals will accelerate growth everywhere:
- Skills development
- Supportive policies towards micro, small, and medium enterprises
- The capacity to innovate and absorb new technologies
- The ability to produce a higher quality and greater range of products
- Infrastructure and other investments
Third, countries must establish a stable environment that enables business to flourish. Business wants a level playing field and to be connected to major markets. It also wants a simple regulatory framework that makes it easy to start, operate, and close a business. Small and medium firms that employ the most people are especially restricted by complicated regulations that can breed corruption.
Fourth, in order to bring new prosperity and new opportunities, growth must also usher in new ways to support sustainable consumption and production. It must also enable sustainable development.
The SDG Fund response
The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:
- Create opportunities for good and decent jobs and secure livelihoods
- Support inclusive and sustainable business practices
- Promote better government policies and fair and accountable public institutions
For example:
- In Mozambique, Sierra Leone and Ivory Coast, the SDG Fund will work with mineral extractive industries to generate economic growth and opportunities for the whole population. For example, in Mozambique, analysis indicates that the 5 largest projects in the country with an invesment of USD $3.4 billion, will generate only 33,000 direct jobs.
- In Bangladesh and in Tanzania, the SDG Fund will contribute to the construction of the social protection systems and universal social safety nets, with special attention to the poorest women.
- In Honduras the SDG-F will support the generation of income through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
- The armed conflict in Colombia has damaged production, institutions, food security, and social trust. Through the sustainable agricultural production of indigenous crops and their international commercialization, the SDG-F will create employment, ways of life, better nutrition, and, most importantly, peace in Cauca - one of the zones most affected by the long lasting conflict.
- In Peru the SDG Fund will contribute to establishing an inclusive value chain in the production of quinoa and other Andean grains, so that the increase of demand in the international market can convert into economic and social improvements of currently vulnerable producers.
Current SDG Fund inclusive economic growth for poverty eradication programmes:
Previous programmes:
Two of the MDG-F thematic windows encouraged practices related with inclusive growth, especially providing opportunities for the most vulnerable: youth, employment and migration and private sector and development. Some programmes on culture and development also tried to boost the economic potential of cultural industries to create livelihoods. Lessons learned from these programmes have been translated into a broader perspective on inclusive growth as a means of poverty reduction.
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Yet, an expanding economy does not mean that everyone benefits equally.
Economic growth is critical for poverty eradication. Yet, an expanding economy does not mean that everyone benefits equally.
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The SDG Fund definition involves:
- Inclusion and participation in programme initiatives within the vision of a Human Rights-based approach
- Economic use of resources in programme implementation
- Sustainability of programme achievements after termination of activities
- Mainstreaming environment and climate change in development programmes
For our programmes integrating sustainability requires an analysis of the governance architecture and the different stages of the programme cycle. At the national level, this could include the formulation of national policies, long term and multi-year development plans, sectoral budgetary allocation processes, and regulatory processes. At the level of projects on the ground, climate change adaptation considerations might need to be factored within specific elements of the project cycle.
As an example, a key element to mainstreaming climate change is the use of a climate lens. The following criteria are essential elements to be observed:
- The extent to which the policy, plan, or project under consideration could be vulnerable to risks arising from climate variability and change
- The extent to which climate change risks have already been taken into consideration
- The extent to which the policy, plan, or project could inadvertently lead to increased vulnerability and maladaptation or miss important opportunities arising from climate change
The following publications offer useful guidance for introducing environmental sustainability and climate change sensitivity into development programmes:
- Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance (OECD, 2009)
- Mainstreaming Climate Change Adaptation into Development Planning: A Guide for Practitioners (UNDP-UNEP Poverty-Environment Initiative, 2011)
See also this list of references from the UNFCCC on how to mainstream climate change into development programming.
[summary] => [format] => full_html [safe_value] =>The concept of long term sustainability of development programmes is constantly evolving.
The SDG Fund definition involves:
- Inclusion and participation in programme initiatives within the vision of a Human Rights-based approach
- Economic use of resources in programme implementation
- Sustainability of programme achievements after termination of activities
- Mainstreaming environment and climate change in development programmes
For our programmes integrating sustainability requires an analysis of the governance architecture and the different stages of the programme cycle. At the national level, this could include the formulation of national policies, long term and multi-year development plans, sectoral budgetary allocation processes, and regulatory processes. At the level of projects on the ground, climate change adaptation considerations might need to be factored within specific elements of the project cycle.
As an example, a key element to mainstreaming climate change is the use of a climate lens. The following criteria are essential elements to be observed:
- The extent to which the policy, plan, or project under consideration could be vulnerable to risks arising from climate variability and change
- The extent to which climate change risks have already been taken into consideration
- The extent to which the policy, plan, or project could inadvertently lead to increased vulnerability and maladaptation or miss important opportunities arising from climate change
The following publications offer useful guidance for introducing environmental sustainability and climate change sensitivity into development programmes:
- Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance (OECD, 2009)
- Mainstreaming Climate Change Adaptation into Development Planning: A Guide for Practitioners (UNDP-UNEP Poverty-Environment Initiative, 2011)
See also this list of references from the UNFCCC on how to mainstream climate change into development programming.
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In this paper, ODI uncovers that most investment in electricity generation in Africa is not geared towards serving the basic energy needs of the poor, but is instead focused on providing power to growing industries and existing consumers. This paper, therefore, argues that tackling energy poverty will have less to do with ambitious expansion of electricity capacity, and more to do with ambitious distribution of energy services to poor people. A second key conclusion is that distributed, clean energy interventions – both renewable energy systems and clean cookstove technologies - are best suited to tackling energy poverty – and poverty more generally. It is here that we should be focusing energy investment, to tackle poverty and close Africa’s energy gap. [format] => [safe_value] => Energy is important to reduce poverty, but increasing electricity generation alone will not solve the problem. In this paper, ODI uncovers that most investment in electricity generation in Africa is not geared towards serving the basic energy needs of the poor, but is instead focused on providing power to growing industries and existing consumers. This paper, therefore, argues that tackling energy poverty will have less to do with ambitious expansion of electricity capacity, and more to do with ambitious distribution of energy services to poor people. A second key conclusion is that distributed, clean energy interventions – both renewable energy systems and clean cookstove technologies - are best suited to tackling energy poverty – and poverty more generally. 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