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Digitalization for Energy Access in Sub-Saharan Africa : Challenges, Opportunities and Potential Business Models

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  • Davide Mazzoni

    (Fondazione Eni Enrico Mattei)

Abstract

Innovative business models supported by digital technologies, together with the widening connectivity and data collection, are already giving a big contribution in fostering the access to electricity and clean cooking in Sub-Saharan Africa. This paper gives an overview on the actual state of energy access in Sub-Saharan Africa and the current technologies used to provide it, followed by a description of the key trends and drivers of the ongoing African digital transformation. A deep analysis of the Pay-as-you-go business model in the off-grid solar sector will shed light on how this transformation started some years ago and the way it is affecting society in many ways. Strengths and opportunities — as well as weaknesses and risks of the model — are provided through a screening of the most representative business experiences in East and West Africa, financial aspects and market analysis. The perspective of both companies and end-users have been considered here. The last section gives recommendations to policy-makers on how to ride the wave of digitalization to foster the access to clean and reliable energy, by acting on the electrification planning, regulations, business environment, distribution channels and mobile money environment.

Suggested Citation

  • Davide Mazzoni, 2019. "Digitalization for Energy Access in Sub-Saharan Africa : Challenges, Opportunities and Potential Business Models," Working Papers 2019.02, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2019.02
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    References listed on IDEAS

    as
    1. Sovacool, Benjamin K., 2018. "Success and failure in the political economy of solar electrification: Lessons from World Bank Solar Home System (SHS) projects in Sri Lanka and Indonesia," Energy Policy, Elsevier, vol. 123(C), pages 482-493.
    2. Noussan, Michel, 2019. "Effects of the Digital Transition in Passenger Transport - an Analysis of Energy Consumption Scenarios in Europe," FEP: Future Energy Program 285023, Fondazione Eni Enrico Mattei (FEEM) > FEP: Future Energy Program.
    3. Mazzoni, Davide, 2019. "Digitalization for Energy Access in Sub-Saharan Africa : Challenges, Opportunities and Potential Business Models," FEP: Future Energy Program 285024, Fondazione Eni Enrico Mattei (FEEM) > FEP: Future Energy Program.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Kohnert, Dirk, 2021. "The impact of digitalization on poverty alleviation in Africa," MPRA Paper 110269, University Library of Munich, Germany.
    2. Sébastien Galanti & Ҫiğdem Yilmaz Ӧzsoy, 2022. "Digital finance, development, and climate change," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Statistics for Sustainable Finance, volume 56, Bank for International Settlements.
    3. Irving Fisher Committee, 2022. "Statistics for Sustainable Finance," IFC Bulletins, Bank for International Settlements, number 56.
    4. Falchetta, Giacomo & Mistry, Malcolm N., 2021. "The role of residential air circulation and cooling demand for electrification planning: Implications of climate change in sub-Saharan Africa," Energy Economics, Elsevier, vol. 99(C).
    5. Kohnert, Dirk, 2021. "L'impact de la numérisation sur la réduction de la pauvreté en Afrique [The impact of digitalization on poverty alleviation in Africa]," MPRA Paper 110297, University Library of Munich, Germany.
    6. Mukisa, Nicholas & Manitisa, Mele Sikimeti & Nduhuura, Paul & Tugume, Erick & Chalwe, Chanda Karen, 2022. "Solar home systems adoption in Sub-Saharan African countries: Household economic and environmental benefits assessment," Renewable Energy, Elsevier, vol. 189(C), pages 836-852.

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    More about this item

    Keywords

    Energy Access; Digitalization; PAYGO; Business Models; Africa; Digital Transformation;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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