Syndicate content

Add new comment

While I agree that one cannot take just entrepreneurs' responses only as indicator of importance of an issue for development (for example, entrepreneurs are not good at all at identifying their own skills as an issue), I think in Tanzania the issue is reliability, not cost of electricity: The enterprise surveys also show that Tanzanian enterprises suffer on average of over 9 outages in a typical month and lose an average of over 7% of their annual sales (vs. the already high 5.1% in SSA, and 3% in all developing countries) due to outages. Therefore, almost half the enterprises have to have a generator - which, particularly for smaller enterprises constitutes a huge cost. For the forthcoming IFC jobs study - about to be launched on January 14th/15th - we estimated that for a small enterprise the cost of electricity may be over 200% higher if they have to get power through a generator. Incidentally, we also estimated that in the countries most affected by power outages - like Tanzania - the job growth was significantly higher than in companies that had a generator. Given how expensive electrity from generators is, one can only imagine how much higher job growth would be with reliable power from the grid. If you are interested in findings like these, please come to the launch of IFC's jobs study ... Roland