I’ve been frustrated by chronic confusion over how people talk about energy access, energy for industry, and the relationship between energy and jobs. I tried to clarify things by laying out some basic facts in my last post.
Now, I recommend this brilliant interview with economist Moussa Blimpo, “Should countries prioritize electricity access for families or firms in Africa?” on Andrew Dabalen’s Afronomics podcast (h/t Daniel Johansson).
Here’s what I love about the episode:
Moussa knows what he’s talking about.
He’s now a prof at the University of Toronto, but when he was part of the research group of the World Bank, he wrote the seminal analysis Electricity Access in Sub-Saharan Africa: Uptake, Reliability, and Complementary Factors for Economic Impact (free PDF here.) It’s a data-rich tour de force of the issues facing Africa’s power sector.
Moussa is the exactly the kind of public intellectual we need because he mixes authority with humility.
He weaves together data and personal stories from growing up in northern Togo. The listener can feel his frustrations with the status quo, yet he also shows that he’s a kind, passionate person focused on solving real problems. By no coincidence, he’s also a longtime Fellow at the Energy for Growth Hub.
Wow (shocker!) a real debate
Andrew and Moussa have worked together, but they are not at all shy about mixing it up and enthusiastically disagreeing. This is refreshing and (sadly) too rare, especially coming out of a podcast from the staid World Bank. Love it. More of this please.
Moussa does not prevaricate: The answer is firms.
Moussa is clear and unapologetic in arguing that reliable low-cost power for industry and agriculture should be prioritized before residential connections. Here’s a taste:
“...if we are thinking about the role of electricity for job creation, is it household residential consumption and rural poor households that will create those jobs? Or is it firms in industry and transport? What will create the jobs?... It's the firms, right, that will create jobs. So it's straightforward for me…. I think [M300, the World Bank’s new initiative to connect 300 million people by 2030] should focus on providing electricity in order to create jobs and generate economic growth.”
Whether you agree or not, this is refreshing. To learn more about why he holds these views, what we are getting backwards about energy demand, why M300 could make things worse, what African leaders are missing, and much more, I encourage you to listen to the whole thing.
1. Yes, providing ample, reliable, affordable power to FIRMS is key to building commerce, manufacturing, and services, providing jobs, thus money and free time for education, thought, and innovation.
2. FIRMS represent credit-worthy customers who will pay the fees needed to sustain electricity generators. Too much electricity in developing nations is stolen by poor people, so who will invest?
3. The industry-required 24x7 reliability is a key selling point for nuclear power, but the costs must come down. See ThorconPower.com example.