Rural electrification and nonfarm jobs creation in Rwanda: case study: Bugesera district.

Abstract

Lack of access to electricity is one of the major impediments to growth and development of the rural economies in developing countries. That is why access to modern energy, in particular to electricity, has been one of the priority themes of the World Bank and other development organizations. The purpose of this study is to reveal relations between access to electricity, job creation and advancement in socio-economic conditions in rural areas of Bugesera District. As a case study, we have analyzed 4 recently electrified rural areas in the District. This study departed from the previous studies looking into several causes of rural underdevelopment but instead endeavored to establish the impact that connection to the national grid had on the nonfarm activities. To achieve the main objective, a survey in the 4 sampled cells of Bugesera was conducted from a population frame of 100 households. The target population was from both farm and nonfarm activities. The tests of correlations indicated a strong relationship between connection to the national grid and value addition services in the area. The study recommends that the body charged with electricity service provision (REG) should reduce installation costs as well as introduce subsidies to help more nonfarm businesses connect to the national grid. Awareness campaigns were also recommended on the advocacy to help more people connect to the national grid. This enabled a conclusion to be made that connection to the national grid was the motivation for creation, value addition in services as well as expansion of nonfarm business establishments in Bugesera.