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The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa

Sub-Saharan Africa is the most electricity-poor region in the world with an estimated 62.5 percent or just above 600 million people without access to electricity and those who have access, are connected to an unreliable system that does not meet their energy needs. The introduction of Independent Po...

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Main Author: Mhlanga,Mduduzi
Other Authors: Alhassan, Latif Dr
Format: Thesis
Language:English
Published: Graduate School of Business (GSB) 2021
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access_status_str Open Access
author Mhlanga,Mduduzi
author2 Alhassan, Latif Dr
author_browse Alhassan, Latif Dr
Mhlanga,Mduduzi
author_facet Alhassan, Latif Dr
Mhlanga,Mduduzi
author_sort Mhlanga,Mduduzi
collection Thesis
description Sub-Saharan Africa is the most electricity-poor region in the world with an estimated 62.5 percent or just above 600 million people without access to electricity and those who have access, are connected to an unreliable system that does not meet their energy needs. The introduction of Independent Power Producers (IPPs) is perceived to be the panacea to all the sector's problems in that it will attract much-needed private investment, increase generation capacity, reduce electricity tariffs due to efficiency and competition and ultimately increase the rate of access to electricity by the general population for the region. This study examined the impact of IPPs on electricity generation growth, tariffs and access in 48 countries in Sub- Saharan Africa using panel data from 1990 to 2013. The findings suggest that over the 23-year period, only 40 percent of the sampled countries had used IPPs for power generation. In addition, results from the panel regression estimations confirmed that the use of IPPs has increased regarding electricity generation growth and electricity access in Sub-Saharan Africa and also led to a reduction in electricity tariff. The policy implication of this study is that Sub- Saharan African countries should allow for the participation of IPPs to achieve increased generation capacity, reduction of tariffs and increased access to electricity by the general population.
format Thesis
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:32:09.918Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher Graduate School of Business (GSB)
publisherStr Graduate School of Business (GSB)
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/35384 The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa Mhlanga,Mduduzi Alhassan, Latif Dr Development Finance Sub-Saharan Africa is the most electricity-poor region in the world with an estimated 62.5 percent or just above 600 million people without access to electricity and those who have access, are connected to an unreliable system that does not meet their energy needs. The introduction of Independent Power Producers (IPPs) is perceived to be the panacea to all the sector's problems in that it will attract much-needed private investment, increase generation capacity, reduce electricity tariffs due to efficiency and competition and ultimately increase the rate of access to electricity by the general population for the region. This study examined the impact of IPPs on electricity generation growth, tariffs and access in 48 countries in Sub- Saharan Africa using panel data from 1990 to 2013. The findings suggest that over the 23-year period, only 40 percent of the sampled countries had used IPPs for power generation. In addition, results from the panel regression estimations confirmed that the use of IPPs has increased regarding electricity generation growth and electricity access in Sub-Saharan Africa and also led to a reduction in electricity tariff. The policy implication of this study is that Sub- Saharan African countries should allow for the participation of IPPs to achieve increased generation capacity, reduction of tariffs and increased access to electricity by the general population. 2021-11-29T09:49:38Z 2021-11-29T09:49:38Z 2020 2021-11-26T11:15:20Z Master Thesis Masters MCom http://hdl.handle.net/11427/35384 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce
spellingShingle Development Finance
Mhlanga,Mduduzi
The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa
thesis_degree_str Master's
title The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa
title_full The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa
title_fullStr The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa
title_full_unstemmed The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa
title_short The impact of Independent Power Producers on electricity generation capacity, tariff and access in Sub-Saharan Africa
title_sort impact of independent power producers on electricity generation capacity tariff and access in sub saharan africa
topic Development Finance
url http://hdl.handle.net/11427/35384
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