How energy access is reducing inequalities worldwide

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In our #UnlockingOneMillion campaign, this week we are shining a light on how access to energy can reduce inequalities that have for too long kept communities across the world excluded from the global economy.

Unequal access to energy within countries is a major factor contributing to wealth disparities within communities in rural and urban settings across the developing world. In addition to this, unequal access to energy between countries compounds this inequality further. This is leaving countries with little energy access severely lacking behind those who have greater access.

We are unlocking potential across the globe and transforming lives through access to energy. Energy access is vital in reducing inequalities. We are changing lives by bringing people into the digital economy, fostering financial inclusion, providing opportunities that never before would have been possible for those living without electricity.

Access to electricity is the stepping-stone to further opportunities for example to receive credit and sustain an income. Research conducted by GOGLA which we participated in found that 34% households in East Africa undertake more economic activities once they’ve installed a solar home system[1]. This shows the impact energy has on improving opportunities and reducing inequalities.

In this way, our work is contributing to UN Sustainable Development Goal 10 – reducing inequality within and among countries.

That is why we decided to launch our latest product bPower20 – our best value product yet. It is targeted at those on the lowest incomes, ensuring that no one is left behind and excluded from economic development. All of our products are payable via mobile money and since we started operating, we have processed over 6 million mobile payments.

Research of our customers in Rwanda found that 81% of those interviewed said the purchase of their Bboxx solar home system was the first product they had bought on credit. We are providing access to finance to those who have previously not been able to receive it – and for many this can be a major game changer. Surveying some of our customers in Rwanda found that 42% felt they had more money to spend on food and school fees as a result. In Kenya, a sample of our business owner customers all agreed that their solar home system was an important factor in boosting their income.

Our customer Josephine Asigo in Kenya said that her Bboxx solar home system was the first product she’d bought on long-term credit. She added that she is grateful that she has been able to access these financial loans that she never would have been able to access previously. True equality can only be achieved when everyone is on the same footing. This shows just how transformational the benefits can be for people who have previously been excluded from their local and global economy.

We are passionate about making energy access universal. But through our work our eyes have been opened up to how no matter how hard we collectively work, there are still people that are excluded from energy access. Last year, we partnered with the government of Togo to create the ‘CIZO cheque’ – an innovative way to address this issue head on. This provides subsidies for the lowest income customers to ensure that clean energy is even more affordable than the alternatives.

Throughout this project we have already positively impacted the lives of thousands of lower-income households. This is unleashing untapped potential within the country and we are proud to be taking this notion and expanding it too, so we can positively impact even more people and reduce inequality once and for all.

Building on this work we’ve done in Togo, just last week we announced the development of the Affordability Accelerator Fund. Alongside the Togo Government, we will be making subsidies scalable. This transforms subsidies into an investment class, thereby encouraging investors to get more involved in expanding energy access for the world’s poorest communities who have previously been shut out of energy access.

Since we were founded 10 years ago, we have positively impacted the lives of over one million people through access to clean, reliable and affordable energy. And we are not done yet. We are always innovating and striving to expand energy access further to reduce inequalities that are rife both within countries and across countries in the developing world.