Open Access Article
Hadija
Matimbwa
a and
Marco E.
Mng'ong'o
*b
aDepartment of Business Management, College of Humanities and Business Studies (CoHBS), Mbeya University of Science and Technology, P.O. Box 131, Mbeya, Tanzania
bDepartment of Crop Science and Horticulture, College of Agricultural Sciences and Technology (CoAST), Mbeya University of Science and Technology, P. O. Box 131, Mbeya, Tanzania. E-mail: marco.mngongo@must.ac.tz
First published on 20th September 2024
Access to electricity is crucial for basic human activities and serves as a direct measure of energy poverty. In recent years, intergovernmental organizations have made significant strides in rural electrification to ensure energy security for all (rural populations, the poor, and the vulnerable). In developing countries, there is a positive correlation between rural infrastructure enhancement and rural livelihoods. Since the early 2000s, in Tanzania, there has been a major government rural electrification initiative to boost rural development. However, the extent to which rural electrification improves rural livelihoods remains unclear. This study was conducted to investigate the impact of rural electrification on household livelihoods in Tanzania, using the Mbulu District as a case study. The study employed a mixed research approach, combining qualitative and quantitative methods. The data were collected from 447 respondents through surveys and interviews with households in electrified and non-electrified areas, where information such as income levels, health, education access, self-employment, and asset ownership was collected. The results indicated a significant 45% increase in household income following electrification compared to non-electrification. About 47% of the respondents earned over 1
000
000 Tsh per month post-electrification, compared to 6% before. Access to modern healthcare improved, with 36% of the respondents being able to afford medication after electrification compared to 13% before electrification. Furthermore, educational opportunities expanded where 31% of the children were enrolled in private schools after electrification compared to 11% before electrification. Asset ownership showed marked improvements, with fewer households living in mud houses (10% post-electrification, down from 22%); all this confirms the significant impact of rural electrification on the improvement of rural development and household livelihood. Our study concludes that rural electrification significantly boosts household income, health service provision, education, and overall welfare which have a significant impact on environmental management. It recommends continued investment and sustained efforts from stakeholders, including the Tanzania Electricity Supply Company (TANESCO) to address challenges hindering electricity service expansion in rural areas. This study provides a foundation for informed policy decisions and actionable strategies to promote sustainable development in rural communities.
Environmental significanceThis study demonstrates that rural electrification in Tanzania not only enhances household livelihoods but also contributes to environmental sustainability; through increasing household incomes and improving access to modern healthcare and education, electrification reduced reliance on environmentally damaging practices such as fossil fuel and biomass burning. Rural electrification improved asset ownership, led to better housing, and further reduced environmental degradation due to minimized deforestation. Thus, there is a need to integrate rural electrification into environmental management strategies to promote sustainable rural development and conservation efforts. |
Rural areas in developing nations have been negatively impacted by enduring challenges arising from limited access to sustainable energy,15–20 which is essential for enhancing household welfare in terms of social, environmental, and economic development.21 Globally, over 860 million people lack access to electricity as of 2018, which is a dropdown from the 1 billion in 2017.22–25 Of these, 80% reside in rural areas, attributable to the high costs of grid extensions, the remoteness of villages and the scattered nature of village populations. In addition, some 2.7 billion people still rely on conventional energy sources for a variety of domestic tasks like heating, lighting, and cooking.26 In rural Sub-Saharan African nations like Tanzania, restricted access to sustainable energy has blocked approximately 633 million people from having access to electricity, according to the IEA's energy report.26 The Tanzanian government launched the initiative to promote rural electrification, provide sustainable access to electricity, and subsequently enhance household welfare in rural areas in response to this predicament.
Rural electrification is the process of supplying electrical power to remote locations and rural communities. This procedure attempts to automate income-generating operations like milking, food processing and storage, agricultural output, and machine operation, expanding the usage of energy beyond lighting and other domestic applications.26 Similar to urban electrification, rural electrification refers to government measures in a particular nation to guarantee the distribution of power and energy in remote and rural areas. This government-led initiative intends to improve rural residents' life quality while facilitating the nation's transition from a lower to a higher economic status.27 The government meets the larger share of costs for the infrastructure and service fees in rural areas since the majority of residents have limited incomes. This is because the emphasis is on providing services as opposed to profit-making. This is evident from the fact that rural energy is extensively subsidized in the majority of countries, to the point that service costs are far lower in comparison to urban areas.28 This demonstrates that these projects which are primarily government-led initiatives are primarily aimed to improve rural household welfare.
Several initiatives are in place around the world to address the problem of rural electrification in general. By 2018 for instance, 100 million people in India's urban and rural areas had access to electricity, demonstrating the country's remarkable progress.26 According to the 2018 country-by-country report from the International Energy Agency (IEA), Africa is also advancing, with an estimated 595 million people lacking access to electricity in 2018 compared to 610 million in 2013. This is because more people now have access to electricity, which has doubled from 9 million in 2000 to 20 million in 2018.26 East African countries like Kenya, Tanzania, and Ethiopia have been commended for 50% of the increased access.29 Despite the advancements, the distribution is still disparate, notably in Tanzania's rural areas. Increasing access to electricity in rural areas is considered a practical poverty alleviation strategy in emerging economies. Except for pastoralist communities that rely on animals such as donkeys and camels, human power is the sole source of energy supply in most rural parts of less developed countries. It is mainly used for food cultivation, processing, cooking, and fetching water and firewood. This results in extra time wasted in completing chores, as opposed to using electric power, which saves time. The two constraints of human energy and time have contributed to extreme poverty since households are unable to engage in additional income-generating activities.
The relationship between electricity and household welfare is not absolute, but it is based on the notion that power, as an essential basic requirement, can contribute to economic growth.26 According to Akpan and Isihak,30 access to electricity contributes significantly to socio-economic development in sectors such as health, education, agriculture, and household income. However, there is limited scientific evidence to support the use of electricity as a poverty-reduction strategy. Higher-income households benefit more from rural electrification in comparison to their low-income counterparts. According to Tanzania's National Census (2022), 70% of the population lives in rural areas and despite the government's numerous attempts to ensure electric connectivity in rural areas, these locations have been demonstrated to have enduring electricity problems.30 In response, the government established the Rural Energy Agency (REA), which functions independently of the Ministry of Energy and Minerals of the United Republic of Tanzania (URT) to provide lasting solutions to these predicaments.30 Since it is a non-union matter, the REA is tasked with ensuring, promoting, and facilitating access to modern energy services in the rural Tanzania mainland. The government's primary goal is to transform rural areas into modern locations by enhancing livelihoods; these transformations have however been constrained by limited access to electricity.21 The Tanzanian Government's subsidy of rural electrification costs is intended to promote widespread access to electricity in rural areas. The Rural Energy Fund (REF), the Rural Energy Board (REB), and the Rural Energy Agency (REA) were founded to function in sync towards ensuring adequate provision of modern energy services in rural Tanzania. Once the infrastructure is in place, clients are required to pay only 27
000 Tanzanian shillings.31 This is projected to transition the entire country into a modern economy, improve livelihoods, and promote urbanization. In 2019, 70% of the rural population had access to electricity, which is a remarkable upsurge from 49% in 2016. In line with this progress, 30% of households were connected to the grid in 2019, in comparison to 20% in 2016.31,32 Despite various government efforts to improve rural electrification in Tanzania, a large proportion of households remain impoverished, with the majority unable to meet optimal living costs. It is upon such a background that the current study analyzed the effect of rural electrification on household welfare in the Manyara Region, specifically the Mbulu District of Tanzania.
The Tanzanian Government has made remarkable efforts towards rural electrification, which is projected to ensure equitable improved livelihoods for all.31 Tanzania, like many other nations, established the Rural Energy Fund (REF), the Rural Energy Board (REB), and the Rural Energy Agency (REA) to provide an adequate supply of modern energy services in rural areas. As a result of these initiatives, 69.8% of the rural population currently has access to electricity, which is an uptrend from the 49.3% in 2016 to 6.9% in 2019. Despite efforts and progress, only 24.5% of households were connected to grid electricity in 2020 and 16.9% in 2021.32 To ensure long-term energy access, one technique of providing electricity to rural areas is through rural electrification. According to several reports, sustained access to electricity in rural areas has implications for rural household welfare. Social services (such as education and health), household income, and job creation are all noteworthy indices of household welfare improvement as detailed hereunder: Findings from empirical research demonstrate the relationship between household welfare and energy across nations. For instance, Olanrele33 in Nigeria found that grid electrification greatly improves household income, spending, and educational outcomes. Olanrele33 similarly analyzed how electrification impacts rural households' employment growth. According to the report, electricity considerably increases the employment of women. According to Akpan et al.,30 businesses in communities with access to the power grid are 16.2% more lucrative on average than businesses in communities lacking access. Microbusinesses are also more successful when backup electricity is provided by generating sets.
According to Khandher et al.,34 rural electrification (RE) increases labour supply, household income, and consumption.31,33–35 However, wealthier rural households receive a larger share of the benefits, while poorer households use electricity less frequently. Khandher et al.34 reported that a limited supply of electricity caused by frequent power outages has a negative impact on both residential electricity connection and consumption, lowering the predicted benefits of RE. The study by Khandher et al.34 substantiated that grid electrification has a significant impact on household welfare while Diyammi and Mkude36 found that household welfare and rural electrification have a considerable impact on job creation and employment prospects. The study further revealed that electricity boosted businesses including stores and kiosks, supermarkets, dining establishments, and hair and beauty salons. Rural electrification in Tanzania made living simpler and more enjoyable by enabling businesses and kiosks to operate even during the night.
In Peru's electrified districts, rural electrification increased access to essential healthcare services. Additionally, it improved communication, information availability and accessibility.36,37 This contributed to poverty alleviation, improved healthcare, and bridging the rural-urban growth divide. According to Fetter and Usmani,38 India's rural electrification decreased the likelihood of witchcraft accusations because of better public and home illumination. According to Ijoma,39 rural electricity encourages women to work by relieving them of routine responsibilities like fetching firewood. Instead, they made use of the extra time to make money, boosting the household's income. Additionally, the use of electricity reduces indoor air pollution, which has an impact on human health, including lung function.40 Undoubtedly, electrification is crucial for advancing a country's development. Fig. 1 depicts the presumed effect of rural electrification (RE) on household welfare improvement (HWI). Improved household welfare was determined by employment opportunities available, household income, asset ownership, and access to social services (education and health) as illustrated in Fig. 1.
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| Fig. 1 A conceptual framework of the effect of rural electrification on household welfare improvement. | ||
Furthermore, poverty endures in most rural households.31,35 A crucial question to be answered is, to what extent does rural electrification impact household welfare? Previous researchers, 4,31,35–37,40,41 investigated the effects, obstacles, and income-generating activities established following rural electrification. This is attributable to the fact that there is limited empirical evidence demonstrating the implications of rural electrification on employment, household income, education, health, and asset ownership among Tanzanian residents,31,35,36 a gap in the literature that the current study attempted to bridge. The scope of this study was to assess how rural electrification affects the household welfare improvement in Tanzania, using the Mbulu district as a case study. The present study was conducted to determine the effect of rural electrification on (i) employment opportunities, (ii) household income, (iii) asset ownership, and (iv) access to social services.
| Types of business investments | Before electrification | After electrification | Environmental management and conservation implications |
|---|---|---|---|
| a Source: field data (2024). | |||
| Grain milling | Old diesel machines | Electric milling machines | Reduction in diesel usage and lower emissions |
| Irrigation | Manual irrigation means | Electric irrigation pumps | Efficient water use and reduced manual labor |
| Carpentry | Use of generators | Electric carpentry machinery | Less reliance on generators and reduced noise and air pollution |
| Baking | Use of firewood and charcoal | Electric baking equipment | Reduced deforestation and a lower carbon footprint |
| Bar | Local brew bars/clubs | Bars with fridges and modern beers | Decreased traditional fuel use and improved air quality |
| Stationeries | Lack of photocopying and printing machines | Stationeries with photocopying and printing machines | Lower paper waste through digital services |
| Welding workshops and garages | Local garages | Garages with electric welding machines and other gadgets | Safer working conditions and reduced fuel consumption |
| Saloons | Solely for plating hair | Saloons with steaming, curling, and hair-drying machines | Reduced waste from non-electric tools |
It was further revealed that stationery businesses previously sold books and other stationeries; however, following electrification, printing, scanning and photocopying services are a valuable addition to the majority of stationery businesses in selected Mbulu district wards (Table 1). Welding workshops have also increased and improved dramatically as regards service efficiency following electrification. Both male and female saloons have also adopted modern electric hair trimming and drying machines as opposed to scissors and razor blades previously used to trim hair and sunshine used to dry hair (Fig. 2). These findings are in line with those of Kidole (2015) who similarly found that electrified households owned various business ventures such as bars (40.0%), mobile phone charging services (20.0%), shops and iron welding (11.7%), grain milling (10.0%) saloons (3.3%) and CD burning services (3.3%).
![]() | ||
| Fig. 2 Household income transformation after rural electrification in the Mbulu district (Source: Field Data, 2022). | ||
These findings were also supported by the village executive officer and as quoted:
“Most of the businesses in this village have expanded their profit margins following rural electrification. Rural electrification has also resulted in increased job creation. We now work smarter and not harder as we use modern machinery to efficiently process our products. This has minimized both production and service costs. It is now possible to watch live local and international football matches in video centers popularly known as “Vibanda umiza” which was impossible prior to electrification. The days when we would just listen to football games on the radio are long gone”.
Another key informant was quoted saying:
“In Chumuli, a grain milling business owner has transformed her business by introducing an electric motor-powered milling machine. She has since inspired other entrepreneurs to purchase the machine by enlightening them on the benefits of electrification. There is also another household that incurred high milling costs owing to the old diesel machine they were operating. Though initially, he was reluctant to purchase an electric motor-powered engine, he was grateful for doing so because within a short time span, the positive impact on his life is noteworthy, he has a new motorbike and a new house”.
Similar findings were made in Ghana, which showed that having access to electricity makes it possible to modernize agriculture through the use of electric-powered irrigation pumps which minimizes labour costs and production costs. Increased employment prospects in electrified towns may result from modernizing agriculture and keeping businesses open later, which may improve overall welfare. Similar findings have been reported in Kenya,42,43 which showed that having access to electricity allows small and micro businesses to use electric tools and equipment, leading to a significant increase in worker productivity (approximately 100 and 200%, depending on the task at hand) and a corresponding rise in income levels (approximately 20 to 70%, depending on the product produced). In addition to increasing the productivity of agricultural activities, access to electricity concurrently enables and enhances the supply of social and commercial services from a variety of village-level facilities (such as schools, marketplaces, and water pumps).
000 to 200
000; 201
000 to 400
000; 401
000 to 600
000; 601
000 to 800
000; 801
000 to 1
000
000, and 1
000
001 and above per month. The income is presented in Tanzanian shillings (Tsh) (1 USD is equivalent to 2200 Tsh). The results demonstrate that 113 (30.0%) respondents earned less than 200
000 in monthly income before electrification which increased by 7% after electric connection, 141(37.0%) said their income ranged between 201
000 and 400
000 before electrification but increased by 4.2% after electrification, 54(14.3%) earned a monthly income between 401
000 and 600
000 which increased by 3.4% upon connectivity, 16(4.0%) revealed that their monthly income ranged from 601
000 to 800
000 before electrification which increased by 2.0%, and 18(5.0%) earned a monthly income of 801
000 to 1
000
000 which increased by 3.0% after electrification. Similarly, 20(6.31%) previously earned more than 1
000
000 in monthly income which increased by 3.79% (Table 2).
| Respondents' income accrued | Before electrification | % | After electrification | % | %Change |
|---|---|---|---|---|---|
50 000–200 000 |
113 | 31.22 | 140 | 31.32 | 19.29 |
201 000–400 000 |
141 | 38.95 | 157 | 35.12 | 10.19 |
401 000–600 000 |
54 | 14.92 | 57 | 12.75 | 5.26 |
601 000–800 000 |
16 | 4.42 | 23 | 5.15 | 30.43 |
801 000–1 000 000 |
18 | 4.97 | 32 | 7.16 | 43.75 |
1 000 001 and above |
20 | 5.52 | 38 | 8.50 | 47.37 |
| Total | 362 | 100.00 | 447 | 100.00 |
These results are consistent with the findings by Kidole44 that there were statistically significant income (P < 0.05) variations between families with grid electrical services and those without, with household annual earnings ranging from 800
000 Tshs to 46
000
000 Tshs. Additionally, supporting the study's findings,31,34,40 concluded that brighter illumination was significantly associated with increased revenue, which was attributable to the extension of business hours through the night. The author provides examples of tailors in Bangladesh who put in four extra hours of work and reported a 30% rise in their income.
The above findings are in line with those established through interviews as one ward officer remarks:
“…I'm glad that electricity has surged household income. Electricity helped households modernize their businesses, particularly with electric water pumps, milling machines, and modernized saloons. By mainstreaming electricity in their business operations, business owners increased their income and were able to invest in, profit from, and grow their businesses…”
These results are consistent with those of Chaplin (2017), who discovered that rural electrification increases the labour supply of men and women, girls' and boys' enrolment in school, and household income and spending, and decreases poverty. However, the larger share of benefits is for wealthier rural households, while the poorer ones use electricity less frequently. The study goes on to assert that households with access to electricity had higher gross incomes than households without access. Similar findings were made in45 which showed that households without power connections typically use 1.5 liters less kerosene per month than homes with electricity connections. Additionally, households without access to electricity spend 0.92 USD more each month on cell phone battery recharges than households with access to microhydroelectricity.
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| Fig. 3 The changes in house living conditions in the studied population before and after rural electrification (Source: field data (2022). | ||
“…Before electrifying my business, times were tough, and I had a terrible time paying for basic essentials for my family. Additionally, the firm wasn't performing properly. But as of right now, I've been successful in growing my business, and I can see improvements in the welfare of my family as a result of my ability to take care of practically all of their requirements”.
Another interviewee remarked: “The electrification that was completed a few years ago has been remarkably resourceful and has boosted my profits within a short period. I faced numerous obstacles prior to electrification as my business wasn’t expanding, which had a negative impact on my family's well-being. Due to the success of the business following electrification currently, it is easy to provide for my family’s necessities…”
Zaman (2000) similarly found that prior to rural electrification, low-income households were unable to meet their basic requirements for clothing, food, and shelter. Additionally, Town and Zone (2014) discovered that the electrification of enterprises had a clear potential to boost household livelihoods.
![]() | ||
| Fig. 4 Respondents' children's school enrolment before and after electrification (Source: Field data (2022)). | ||
The study is backed up by44,45 making the case that modern energy sources are necessary to raise living standards by generating employment and increasing productivity. Additionally, the energy source delivers cleaner fuels for cooking and heating as well as lighting for houses. Thus, the study findings highlight that only if energy is accessible to everyone will important aspects of human welfare such as living a long and productive life, being in good health, having access to knowledge and educational opportunities, and having enough money to meet their basic material and aesthetic needs improve.
| Response item | Before electrification | After electrification |
|---|---|---|
| a Source: field data (2024). | ||
| Access to modern healthcare equipment | 40.7% | 48.9% |
| Ability to pay for medicine | 13.2% | 36.2% |
These results support those of Matimbwa and Kipilimba,35 where it was shown that electricity enables rural households to engage in income-generating activities by supplying lighting that lengthens the workday and supplying power to machines that boost production and productivity. Additionally, it was discovered that rural electrification enhanced health by enabling health clinics to refrigerate vaccinations, run medical equipment, and administer treatments after sundown, as well as by powering equipment for pumping and treating raw water. Additionally, schools are lit by rural power, allowing students to study after hours and improving their employment prospects. In addition, it was discovered in an interview that most respondents had better access to healthcare services because they could afford subscriptions to health insurance programs like the Community Health Fund (CHF). One interviewee particularly remarked that;
“…Rural electrification has aided me in accessing quality health care owing to increased profits. As a CHF member, I now use TIKA (TIBA KWA KADI), for which I just pay 10,000/= per year. As a result, my entire family has easy access to medical care at the nearby public hospital…”
In a comparable direction,33 showed that customers with electricity could afford more nutritious and diverse meals than their peers who lacked access to electricity owing to increased income. Additionally, households that have access to microcredit are more inclined to increase their ability to produce food by sowing quality seeds and using enhanced technology.34,36,38
In support of the above, one interviewee commented that;
“…Before electrification, my household income was quite low and I couldn't afford to buy all the food my family needed. As a result, we were accustomed to eating the same inexpensive foods every day, but thanks to a rise in revenue from my small business, we are now able to eat a variety of foods…”
“…Through the profit I get from my business as a result of electrification, I have been able to buy household furniture including a refrigerator, I now make ice cream and sell it to students, which supplements my household income, this is an addition to my main business…”
Regression analysis results support the previous findings, as shown in Table 4 below, where it was discovered that rural electrification positively affects changes in business investment, income earned, and household wellbeing. The results demonstrate that rural electrification has a greater significance (P < 0.05), impact on income accrued household welfare in terms of their capacity to afford living expenses, as well as their ability to access education, healthcare, and land ownership (Table 4). The study also discovered that rural electricity helped households shift their line of business. These results suggest that the majority of the households' income increased as a result of rural electrification because businesses changed to a more modernized model, which enabled their income to increase and improved their capacity to pay for living expenses in various ways. These results are consistent with those of47,48
| Coefficientsa | ||||||
|---|---|---|---|---|---|---|
| Model | Unstandardized coefficients | Standardized coefficients | t | Sig. | ||
| B | Std. Error | Beta | ||||
| a Dependent variable: household welfare improvement. | ||||||
| 1 | (Constant) | 1.773 | 1.665 | 1.064 | 0.289 | |
| Business investment | 0.002 | 0.044 | 0.004 | 0.056 | 0.004 | |
| Income accrued | 0.493 | 0.045 | 0.709 | 10.852 | 0.000 | |
| Households' welfare | 0.072 | 0.051 | 0.092 | 1.409 | 0.003 | |
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