1. THE LINKS BETWEEN ENERGY AND DEVELOPMENT: OBSERVATIONS FROM THE RURAL ELECTRIFICATION PROGRAMME IN ZIMBABWE Maxwell Mapako CSIR Natural Resources and the Environment P O Box 395 Pretoria 0001, South Africa

2. © CSIR 2006 www.csir.co.za Map of Zimbabwe

3. © CSIR 2006 www.csir.co.za Context of Rural Grid Electrification in Zimbabwe Focus on unelectrified rural centres, often called ‘growth points’ Local councils promote enterprise development and let small stands (plots) at growth points Households are scattered, which is the usual settlement pattern in rural Zimbabwe. These have to bear the full cost of connection from nearest growth point

4. © CSIR 2006 www.csir.co.za History of Rural Grid Electrification To meet post-independence expectations Generous donor support was available, utility could be subsidised Criteria mainly based on equity ESAP brought need for financial sustainability Criteria: improve electricity utilisation and cut costs (econ activities, proximity) Cross subsidy from levy on tariff 1%-6% End use support introduced

5. © CSIR 2006 www.csir.co.za Study Outline Aim to understand the Expanded RE Programme (EREP) programme 73 small enterprises covered Confined to Southwest Zimbabwe (arid/hot) Focus: end user perceptions as these are poorly covered in official literature This is initial work on a larger study in the region To encompass FGDs and other stakeholder inputs

6. © CSIR 2006 www.csir.co.za Enterprises encountered Only frequencies at least 10% listed Type of enterpriseFrequency % Retailing21 Bottle store15 Grinding mill15 Farming / ranching12 Supply farm produce10

7. © CSIR 2006 www.csir.co.za Enterprise prevalence views

8. © CSIR 2006 www.csir.co.za Enterprise profitability views

9. © CSIR 2006 www.csir.co.za Reported problems Only frequencies >4% listed here Problem facedFreq% Financial constraints30 Power cuts23 Transport / deliveries10 Fuel Scarce4 Lack of equipment4 Lack of skills4

10. © CSIR 2006 www.csir.co.za Impact of EREP Only frequencies #5 and more listed for After EREP figures Type of enterprise Before EREP Frequency% After EREP Frequency% None7030 Retailing1114 Grinding mill-11 Bottle store38 Farming / ranching87 Butchery-4 Welding14 Irrigation33 Restaurant-3

11. © CSIR 2006 www.csir.co.za Fuel use patterns before/after EREP

12. © CSIR 2006 www.csir.co.za Machinery use trends before/after EREP

13. © CSIR 2006 www.csir.co.za Perceived benefits of EREP

14. © CSIR 2006 www.csir.co.za Perceived negative aspects of EREP Only frequencies 4% and above listed CriticismFreq % Expensive25 Slow25 Power cuts14 Not reaching everyone8 None7 Not participatory4 Not transparent / bias4

15. © CSIR 2006 www.csir.co.za What respondents would change Only frequencies of 4% and above listed Proposed changeFreq % Financing approach18 Improve equipment supply15 Speed up implementation14 Install Electricity12 No response8 None8 Education, skills4 Improve efficiency4 People must payback4

16. © CSIR 2006 www.csir.co.za Community benefits example Chasiyatende Primary School in Chivi District, near Masvingo, a town in Masvingo Province in the Southeast of Zimbabwe Arid and famine-prone area. The headmaster registered the school as a milling company, thereby qualifying for a maize allocation from the central Grain Market Board. The school grinds, bags, and markets the maize meal to the community. School had reduced / waived fees in hard times and built own classrooom blocks. Approach is being replicated.

17. © CSIR 2006 www.csir.co.za Concluding remarks There is growing consensus that focusing on economic activities in the provision of energy services is an effective way to contribute to reduction of poverty. The experience in the expanded rural electrification programme in Zimbabwe seems to lend weight to this view and deserves further study as it evolves since it undoubtedly holds lessons for other countries in the region. Policy innovation has a crucial role in providing a conducive environment for novel approaches to implementation Flexibility and willingness to learn lessons and incorporate them into ongoing programmes evident

18. Thank you