Empowering off-grid entrepreneurs in Sub-Saharan Africa

Furthermore, local entrepreneurs tend to focus on better ways of providing basic energy services and productive services and consider the diverse needs of the poor. This is essential because access alone doesn't solve socio-economic problems, and what people demand is not energy per say, but rather energy services that help them through their day-to-day life. The top down "one size fits all" approach to providing energy does not address diverse needs of the rural population, and the ability to understand the socio-cultural complexities is essential in creating successful projects.

With many of the people suffering from poverty living in rural areas, if MDG goals are to be reached, energy services need to be available, appropriate and affordable.

The World Bank and AusAID need to put stronger focus on building the capacity of these local entrepreneurs, and to help assist with building sustainable business by providing the financial capital to help distribute off-grid renewable energy to rural populations.

Australian minerals and resource companies have more projects in Africa than in any other region outside Australia with 200 companies currently working around the continent

Right now, AusAID's strategy in Africa is focused on health and infrastructure. And although this is essential, aid can be made more effective by creating strong public private partnerships with Australian companies to draw from their expertise and knowledge.

Australian investments also need to monitor how they impact the lower income households. Companies investing in renewable energy in particular need to have a well-structured plan on how they will provide energy access to rural areas as well as make it affordable to low income households. They need to engage with local communities, NGOs, entrepreneurs, SMEs and the African Diaspora to help build projects that combine international models with African realities.

In 2012, AusAID took a step forward by creating the AusAID- Africa Roundtable with business.

AusAID should ensure that priority areas for this engagement include promoting the viability of the off-grid market in rural sub-Saharan Africa and promoting investment. It should also discuss the most effective ways to draw knowledge and expertise of the resources sector to and provide trainings in the operation, management and maintenance of off-grid technologies to entrepreneurs and SMEs.

Using a market-based approach that focuses on communities as both consumers and producers, taking into account the diversity of needs, is more sustainable and ensures that demand is met and market prices for off-grid products are kept competitive.

Ultimately, the end goal should be to strengthen Africa's private sector, build human capital and technical expertise for more sustainable, African-led Development. The World Bank needs to change its current energy investment policies if it does not want to serve as a barrier to achieving this goal.