EnDev helps stimulate local economic growth in rural Tanzania

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Tanzania 2018/07/11

11 July 2018

The SDG7 review includes economic development in LDCs as important success factor. In Tanzania, local businesses have ventured into rural areas with the help of financial incentives by EnDev.

Solar co-operative in Bariadi, Tanzania. ©DFID/Watkins

Business - DFID Watkins Tanzania 2015 solar co-operative in Bariadi.jpg Solar co-operative in Bariadi, Tanzania. ©DFID/Watkins

At the High Level Political Forum (New York, 9-18 July 2018) all parties reviewing SDG7, acknowledge the importance of economic development. Economic development contributes to local job creation and leverages additional funding from the private sector for increasing access to energy. . In order to help businesses grow and venture into markets that have not been tapped before, financial and technical assistance are an effective tool to enable market development. EnDev successfully supports this objective with its interventions by implementing with a market-based approach.

Setting incentives boosts businesses in rural zones

In rural Tanzania, for instance, EnDev has successfully applied results-based financing (RBF) to support the local private sector. The project, implemented by development partner SNV, has encouraged suppliers of small solar systems to expand their business to the remote Lake Zone by providing them a financial incentive for each solar system sold to a rural consumer.

While in 2013 hardly any solar company was active in the region, today 15 international and local solar companies work there through a network of around 600 retailers and sales agents. The companies declared that they would not have ventured into the new areas without the incentive.

Through this EnDev intervention, more than 325,000 people in the Lake Zone region gained access to energy through this RBF project so far. For more information on the country project, see the page Tanzania.

Support to the private sector across the globe

Since 2005, the EnDev programme has supported access to modern energy services for more than 19 million people in Africa, Asia and Latin America. More than 40,000 small businesses have benefited from energy access through EnDev activities across the globe.

Photo ©DFID/Russell Watkins, under the CC BY 2.0 license, no changes made.