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The leaders of half of the countries in Africa gathered this week in Dar es Salaam, the maritime metropolis of Tanzania, to present the largest spread of electricity studies in the history of electricity.
The World Bank, African development banks and others are providing at least $35 million to expand electricity across the continent where more than a million people still don’t have it. About half of the money will go to “Minigrids” that serve individual communities. The loan will come with the lowest interest rate, an important reference because international lenders tend to have higher interest rates in Africa, which cites a higher risk. .
In an interview, Ajay Banga, the president of the World Bank, launched the movement in the catchy words where economic development meets social stability and basic human rights. . “Can’t get jobs, health care, skills,” he said. The success of education, he said, “is the basis of everything.”
Summit’s promise is to reach half of Africa’s more than 600 million people in just six years. Which decreases to five million people per month. Mr. Banga said that the World Bank has not yet passed the one million month mark.
Despite the declaration that the political will is not too strong, many people, especially the beelaguered power sector, have expressed deep doubts. In fact, some have pointed out that one need look no further than the host country, Tanzania, to find a cautionary tale.
Recently the Minigrids Minigrids developer, Minigrids Solarado, is closing shop in Tanzania because the government insisted that it sell electricity at low prices through electricity.
Unable to make money at that price, Husk said, the company sold its assets, costing millions of dollars, at a loss. Some remain intact but defunct. Others are not dry and are sold for parts.
This is despite the fact that Tanzania seems to be a good market, when it came to the year 2015. The country’s news president at that time earned the nickname of “Bulldozer “, for the construction of roads and for the construction of corruption. Only a third of Tanzanians are connected to the line.
Husk’s departure left thousands powerless and disillusioned, as they were willing to pay a higher price. Among them is Mwajuma Mohamed and his family in Matipwili, a community where around 200 homes and businesses receive temporary power from the dusty Minigrid.
“When we got electricity, suddenly we were like normal people,” he said, showing a visitor around the darkened building. The first thing he bought, he said, was a television, which goes back in the box it came in. “It’s not fair. It feels like we wasted money.”
Without naming Husk, Tanzania’s Minister of Energy, Doto Biteko, said in an interview that some Minigrid operators were accused of art prices, which resulted in an increase. “We’re not trying to give people a hard time,” he said. “But the government’s role is to make reasonable decisions.”
Lenders try to negotiate in this matter. The loan from the World Bank and the African Bank put in place this week is the pursuit of reforms that, in many cases, allow independent electricity suppliers to the legal instrument. Tanzania is one of the 12 countries that sign the “Compacts” at the summit meeting. In the coming months, another 18 are expected.
In addition to the Solol Minigrids, the same amount will go to the continuity of existing power and electricity, which has been offered by hydropower and fossil fuels.
But the cost of building a solar power plant, driven by China’s growing reliance on low-cost solar panels, may be the most important factor in the mission. Not only can solar power be cheaper, it takes less time to build a dam or a power plant and has the added benefit of not releasing greenhouse gases.
“It’s the technique and the cost. That’s why this happened last time,” said Raj Shah, who heads the Rockefeller Foundation, which invests millions of dollars in renewable energy projects around the developing world. . “The reason almost 30 heads of families are here is because now they see that this is a faster, less expensive way to create jobs and avoid any kind of inefficiency.”
At the time when Husk shut down the Minigrid in Matipwili, a pole carrying power from Tanesco, the utility of the state came to the town. Only a quarter of people are served, and the service is low, according to customers. Like all but four of the dozens of electricity companies in Africa, Tanzania’s cycle of loss and lack of frequent maintenance and frequent and long power outages.
Gesenda Mwing Gesenda said: “With Tanesco, it costs three times as much for the same power. Whether the meter goes up and up, or power outages for hours, even days don’t.”
Matipwili’s experience explains why voluntary education facilities are not expected by lenders. “What we see here is the realization that the grid does not exist, expands it now, is cost-effective and beneficial to end users, compared to a Minigrid,” said Ashvin Dayal, who leads the power of the rockefeller foundation and the climate program.
The funders of the mission said that money can not solve the problem, money and changes in the law may attract more investment more than $ 3500 million this week.
Mr. Banga attended a climate and energy conference in Kenya last year where he met with African leaders. “I told him, ‘Hey guys, do you want to be at your job for a few years? You have to promise a job and a quality of life. I can help you, but you have to step up to the plate.'”
Multi-funding is not 100 percent guaranteed, and not because of concerns about the country receiving aid. The new administration in Washington, which is exposed to illegal energy and foreign aid, has created uncertainty in the financing of the world, if only because the United States is the largest contributor in The World Bank Today, the bank has enough money in the development pot to fund its mission, in part, thanks to the last decision made by the Biden administration.
Mr. Banga was pressed on the short-term technical goals of the project, but he said they expected investment in Dar es Salaam, private equity funds, real estate funds and the local bank to follow them.
“It’s a big mountain to climb. You can’t just decide,” said William Brent, Chief Marketing Officer. “Husk builds one Minigrid a day and it’s the fastest in the industry. Even if you add 10 more nodes, it’s still not part of the way there.”
Husk has built 70 Minigrids in Nigeria, which have been environmentally approved. And said on Monday that the Democratic Republic of Congo will join this year.
While the lenders rubbed shoulders in Dar Es Salaam and the president of Rwandan-backed rebels took over the Congolese town on Monday, where some donors supporting the new movement supported the Minigrid project.
The city falls, the government renews commitments and debts. Lenders know that they are still facing the same problems that have limited investment in African infrastructure and have left many countries behind.
But power shortages are more than just a drag on the economy. Papers, period, will not have electricity in a world where 90 percent of people live.
There is no Internet, no speakers to play music, no cold beer from the fridge, no lights for the kids to do homework.
When 45-year-old Mashavu Ali arrived in Matipwili, he was more than happy for one of his daughters, who had the best grades in secondary school. He thought about his studies late at night.
Since they lost electricity, their daughter went down. Ms. Ali now rents a rooftop solar panel for 20 cents a day, but the light it provides is dim and, with no batteries to store its power, doesn’t work on cloudy days. Her children go to sleep soon after sunset. And he dedicated his dream to how he could support them with just a little power.
“My plan was to open an ice cream factory,” said Ms. Ali, sitting outside his house, surrounded by family. It was getting dark and an outdoor light from the rented house started to glow. “What to say, Eh? It remains an opinion.”
