RURAL ELECTRIFICATION - GHANA
Poverty is most widespread in rural areas and tends to affect women more than men. This is because it is women who must fetch water, grind cereal and collect wood, tasks which are highly labour intensive and time-consuming, and trap woman in a cycle of poverty.
Energy is critical for poverty reduction and plays a central role in access to health, water, sanitation and education.
In Ghana, the National Electrification Scheme was set up in 1989 with implementation planned over 30 years. Its objective was to connect all communities with populations over 500 to the national grid and to achieve universal access to electricity by the year 2020. The objectives included stimulating economic activities at a rural level through productive use of electricity; thereby reducing rural urban migration and improving social livelihood of rural people.
Following pressure from some of the Regional Districts, government then instituted the Self Help Electrification Programme (SHEP), allowing communities to play a role in accelerating this process. Citi has provided funding to the government of Ghana for the fourth phase of this program, called SHEP IV, by means of a long term low interest loan.
General distribution agreements are set up between the Ministry of Energy and the Volta River Authority (VRA)
establishing how the electricity, generated via the Volta hydroelectric scheme, is transmitted to the various regions. The contractor, ThengaShep, then taps the power off the VRA grid and designs the procurement, logistics and installation of the equipment required. The communities who are represented by the District Assemblies also contribute labour and basic equipment to the process
“IT’S AFRICA’S TIME” visits Bolgatanga, in the upper east part of Ghana, where SHEPIV is being implemented and where lack of access to electricity is a major obstacle to the region’s socio economic development. Interviews with government, commercial and beneficiary stakeholders document the structure of the financing as well as the programs implementation methodology, and detail how SHEPIV has expedited access to electricity and impacted on both the community and the local economy.
Citi is a global banking institution connecting over 1,000 cities, 160 countries and millions of people and providing services to individuals, communities, institutions and nations. With 200 years of experience meeting the world's toughest challenges and seizing its greatest opportunities, the bank strives to create the best outcomes for clients and customers with financial solutions that are simple, creative and responsible.
shani Kay