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Energy services that are
unreliable and high cost are a constraint to productivity and
competitiveness. In many African nations, inadequate energy service
limits the ability of large and small enterprises (including informal and
home based cottage industries, farm activity and post-harvest processing)
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Public facilities such
as schools and health clinics often cannot provide the services they should
because they lack electricity and fuel. Sterilization, water supply
& purification, sanitation, refrigeration of essential medicines,
patient care and safe delivery after dark are all impaired in health
facilities that lack adequate electricity. In rural areas, inadequate
electricity supplies disincentivise teachers, doctors and nurses from
residing locally
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Millions of Africans
lack electricity service in their homes. Modern lighting would facilitate
socializing, reading and studying after dark.
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The unit cost of
producing power in many SSA countries is high, due to suboptimal system
planning, low operating efficiencies and reliance on high-cost small
generating units when regional sources could provide power at lower cost. For example the cost of oil
based power in some countries in SSA is in the range of 25-30 US cents per
kWh, reflecting high
transportation costs for oil shipments from distant supply points.
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Many countries are faced
with supply shortfall as investment in generation has not kept pace with
demand. Just 27 GW of
generation capacity is installed in SSA for a population of approximately
686 million. Latin America - with a population of 541 million - has
installed capacity of over seven times this (200 GW). Drought in SSA is
exacerbating the power shortfall.
Uganda, Burundi and Rwanda all resorted to load shedding
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