BiD Workshop 'Access to energy services for the poor in Africa' (26 Jan 06)
“Energy must play a more prominent role in strategies to achieve the Millennium Development Goals (MDGs)" - Mats Karlsson (Chair, UN-Energy)
On 26 January 2006, NCDO organised a workshop on the need for a new wave of investments in the energy sector in Africa. This workshop was being organised during the 'DUTCH AFRICAN - ENTERPRISE FAIR 2006: How to succeed in Africa: Fighting Poverty with Profit' on 25 and 26 January 2006.
Energy deeply influences poor people's lives. It is central to practically all aspects of human welfare, including access to water, agricultural productivity, health care, education, job creation and environmental sustainability. Yet, Over two billion people in developing countries still lack access to safe and reliable energy, in particular electricity and clean fuels for cooking and heating.
To meet future energy demands, a new wave of investments in the energy sector in Africa is needed, both in energy utilities and in non-conventional energy supply chains. There is a great need for new projects and innovative business models that can be worked out in partnerships between African and Dutch businesses, and with the public sector that is very keen to support such developments.
Panellists Frank van der Vleuten (ETC Energy), Marieke Wit (FRES) and Peter van Poortvliet (EVD) discussed what an entrepreneur needs to know if he / she wants to set up a business plan providing access to energy for the poor. Different grant programmes and financial support facilities (of the Dutch Government among others) were pointed out.
Some of the main conclusions:
- There is a massive market potential in the field of access to energy, with a massive social impact.
- Make use of the local market instead of government utilities.
- Build on local entrepreneurs (>50 per country) and local business cultures. Invest in Business development support and capacity building.
- Key actors are the small local entrepreneurs, who will supply energy services directly to the end-user in Africa.
- Identify your target group carefully. Know what they are willing to pay.
- Subsidy is needed to make a business plan in the field of access to energy viable. Think carefully how you want to use it. But don’t change your business scope for the sake of the subsidies.
- Think business wise, not project wise.
- Dare to go where financiers and investors fear to go.
- Go step by step and be creative.
--> Download Powerpoint presentation Frank van der Vleuten, ETC Energy
--> Download Powerpoint presentation Marieke Wit, FRES
Relevant links
--> DUTCH AFRICAN - ENTERPRISE FAIR 2006
--> Opening speech of Dutch development minister Agnes van Ardenne
--> 'The Energy Challenge for Achieving the Millennium Development Goals' by UN-Energy
--> BiD seminar 'Access to energy services for the poor', NCDO, June 2005
