Spurring local socio-economic development through rural electrification: cluster evaluation

This cluster evaluation assesses the effectiveness of 6 out of the 18 rural electrification investment projects funded by the African Development Bank between 1999 and 2013, amounting to about USD 290 million. The projects cover five countries: Benin, Ethiopia, the Gambia, Mozambique and Tunisia. The selection of rural electrification as one of the evaluation themes is due to the fact that it has a pronounced impact on the majority of Africans living in rural and sub-urban areas.

The goal of this evaluation is to assess the relevance, effectiveness, efficiency, and sustainability of completed rural electrification projects to draw key lessons from what worked, and what did not work. In addition to informing the design and implementation of future projects, this evaluation also adds to the ongoing independent evaluation of the Bank’s assistance in the energy sector as well as the overall Comprehensive Evaluation of the Bank’s Development Results completed in 2016. Additionally, it aims to help the implementation of the Bank’s New deal on Energy for Africa by providing lessons learnt. Being intended as a learning product, the report does not contain recommendations.

lessons learnt:

• Lesson #1: Lack of critical risk analysis and adequate risk mitigation measures can contribute to substantial implementation delays and inefficiencies.

• Lesson #2: Integration between rural electrification and other rural development projects (irrigation, agriculture, water supply, health, education, microcredit, etc.) is critical to better outcomes.

• Lesson #3: Focusing rural electrification on geographical rather than household coverage can bring electricity closer to rural households but cannot ensure universal access unless issues of affordability to the rural poor are addressed.

• Lesson #4: Appropriate tariffs and subsidies are critical to the financial viability of electricity utilities and to sustaining rural electrification benefits.

• Lesson #5: Strong political support, including an initial investment subsidy and adequate institutional framework, is necessary to sustain project results.

Task Manager: Joseph Mouanda