Kenya joins IFC Lighting Project

Date: October 17, 2006
Author:John Oyuke
Source: http://allafrica.com/stories/200610161293.html

The International Finance Corporation (IFC) has announced a new $7 million (Sh511 million) project to increase access to modern energy services in Africa.

It said the initiative, "Lighting the Bottom of the Pyramid" would support LED (Light Emitting Diodes) companies to enter the off-grid lighting markets in Africa and other developing countries - currently estimated at $40 billion a year.

IFC will, among other things, facilitate partnerships between international and local firms and finance as appropriate operations and investments, which companies need to enter these markets, such as a local assembly or manufacturing.

IFC said the project would be first piloted in Kenya and Ghana and is already seeking partners across a wide range of donors, private sector companies, and stakeholders to collaborate in the initiative.

"We are seeking to provide the poorest of the poor - or the "bottom of the pyramid" with greater access to reliable and affordable lighting services," IFC, a member of the World Bank group said.

It said there were currently about 1.6 billion people who lack access to electricity, and currently spend $38 billion a year on fuel-based lighting, 500 million of them in Africa.

IFC said lack of access to modern lighting services hinders development, noting that among the poorest of the poor, lighting is often the most expensive item among their energy uses.

For instance, it added, fuel-based lighting can account for up to 50 per cent of all energy expenses and up to 33 per cent of total household income.

"While consuming a large share of scarce income, fuel-based lighting provides very little in return," IFC noted in the project's promotional flyer.

IFC observed that the low quality of the lighting provided by fuel-based devices did not support productive or income-generating activity.

In addition, it pointed out they reduce educational performance, as children lack the opportunity to study without eyestrain in the evenings.

Further, indoor pollution from fuel burning normally leads to health problems, the IFC said, noting however that increased access to modern lighting products could reverse this scenario.

"Modern lighting technologies have lower ownership costs than fuel-based lighting, do not generate indoor pollution, and can support small scale income generating activities - thus fostering a virtuous cycle of development and poverty reduction," it said.