TEC, KNUST
Energy Access and Productive Uses for
Slum Dwellers in Ghana
The AEI Practitioner Workshop
November 14-16, 2011
BY:
OWUSU AMPONSAH
1
PRESENTATION OUTLINE

Background to the Scoping Study.

Productive Uses of Electricity in the Slums.

Access to Electricity in the Slums; Issues and Challenges.

Slum Dwellers’ Willingness and Ability to pay Tariffs.

The Role of the Slums in the Urban Economy as a system.

The Way Forward Towards Enhanced Electricity Access.

Conclusion.
2
BACKGROUND TO THE SCOPING STUDY

Poverty in Ghana is no more a rural
phenomenon but has an urban dimension.

“Urbanisation of poverty” is the result of the
incessant rural-urban migration.
Urbanising Poverty
Rural Urban Split
90

The urbanisation rate in Ghana was 3.4%
between 2000 and 2010.
Rural Urban Split
80
76.9
70
71.1
68
60
56.2
50
43.8
40
30
20
23.1
28.9
50
Urban
32
Rural
10
0
1960
1970 1984 2000
Census Year
2010
3
BACKGROUND TO THE SCOPING STUDY – CONT’D

The UN-HABITAT (2007) defines slums
as communities that are without:
◦ durable housing of permanent nature
◦ sufficient living space
◦ easy access to safe water
◦ access to adequate sanitation
◦ security of forced evictions.

The slums are located very close to
places of work.
Arial photograph of Akwatia Line

They are the dwelling hubs of the urban
poor.
4
OBJECTIVES OF THE SCOPING STUDY

The scoping study was intended to:
◦ examine the pro-poor energy policies in relation to the slums’ access to
energy;
◦ examine the productive uses of energy in the slums; and
◦ provide an insight into the challenges confronting the slum dwellers in
their access to energy.

The study was funded by ESMAP.
5
GEOGRAPHICAL SCOPE

Three slums were used for the research:
An Assembly of Old Fadama Residents...
◦ Old Fadama – The most populous slum
(about 79,684) in Ghana. Located in the
Accra Metropolis.
◦ Amui Dzor – Population of about 1,800
people and is located in the Ashaiman
Municipality;
◦ Akwatia Line – Located 5 minutes
south of the Kumasi Central Market with
a population of about 1,440 people.
...in reaction to eviction threat
6
THE SLUM DWELLERS AND CITY AUTHORITIES

The Metropolitan and Municipal Assemblies do not consider the slums in
exercising their planning function.

Accordingly, Utility companies are unwilling to extend their services to the
slums, as they could be seen to be legitimizing them … “a political issue”.
◦ Do they then have access to electricity?
◦ What purposes do they use electricity for?
◦ Do they pay for electricity consumption?
◦ Whom do they pay to?
◦ Do we have to formalise their access to electricity?
◦ Etc.
7
ACCESS TO ELECTRICITY IN THE SLUMS

Electricity is the dominant modern energy used by the Slum dwellers.
Access in:
Slums’ Average
◦ Akwatia Line = 79.4%
◦ Old Fadama = 95.0%
◦ Amui Dzor = 90.0%%

88.2
National Urban Average
79%
However, only 56.4% of the households acquired their electricity
connection from the Electricity Company of Ghana (ECG) and thus had
electric meters.
8
ACCESS TO ENERGY IN THE SLUMS – CONT’D
Haphazard and Dangerous Electricity Connections in the
Slums

The remaining 43.6% acquired their
electricity connections from
unauthorised sources (By-Pass).

About 63.7%, 89.8% and 7.9% of the
households in Old Fadama and Akwatia
Line and Amui Dzor, respectively are
without electric meters.

The result has been the haphazard and
dangerous connection from distribution
lines.
9
ENTERPRISES IN THE SLUMS

The enterprises in the slums are diverse.
Enterprises
Old Fadama
Slum
Amui Dzor
Total
Akwatia Line
Scrap metal works
220
1
150
371
Communal bathhouses
208
15
13
236
Chop bars / restaurants
76
33
39
148
Provision stores
77
43
9
129
Hair salons
33
24
11
68
Dressmakers
41
13
8
62
Saw mills
12
4
14
30
Grinding Mills
Electrical and electronic shops
12
23
9
7
3
24
3
33
Schools
12
9
2
23
Source; PDG and GHAFUP, 2006
10
ENTERPRISES IN THE SLUMS – CONT’D

A transect walk through Amui Dzor and Old Fadama identified other
enterprises such as:
◦ Groundnut paste production
◦ Blacksmithing
◦ Baking
◦ Sale of sachet water
◦ Auto-mechanics
◦ Entertainment centers.
Majority of the enterprises depend
on electricity for operation.
11
USES OF ELECTRICITY IN THE SLUMS

The survey identified diverse uses of electricity in the slums.
Units
Electricity Usage
Households
Lighting, freezing, ventilation, entertainment and heating.
Provision shops
Lighting, ventilation and freezing.
Public bathhouses
Lighting.
Chop bars and food vendors Lighting, ventilation and freezing.
Hair salons and barbering
shops
Grinding mills and sawmills
Lighting and hair drying, and shaving.
Dressmaking shops
Sewing, ventilation and lighting.
Community schools
Lighting and ventilation.
Video centers
Lighting and entertainment.
Electronic shops
Repairs of electronics and lighting.
Milling and sawing.
12
USES OF ELECTRICITY IN THE SLUMS – CONT’D
Diverse uses of electricity in the Slums.
13
COST IMPLICATIONS OF UNAUTHORISED CONNECTION

The use of shared meters constrains households from enjoying the propoor lifeline tariff subsidy.

Exemptions are given to bill collectors which is likely to inflate the bills paid
by the households.

The monthly losses to ECG were estimated at:
◦ Old Fadama = GH¢72,684.5 (US$48,456.33);
◦ Amui Dzor = GH¢304 (US$202.67); and
◦ Akwatia Line = GH¢1,083 (US$722) .
◦ The estimations are based on the assumption that the monthly bills
paid to the meter owners are not transferred to the ECG
14
OTHER CHALLENGES WITH ELECTRICITY SUPPLY IN THE
SLUMS

Electricity supply in the three slums is characterised by:
◦ Frequent and unannounced blackouts.
◦ Low electric currents especially in Old Fadama.
•
Though these problems are not unique, the intensity was reported to
be higher in the slums.
•
Through a key Informant interview community leaders disclosed that:
“A day has never passed without power outage. As for low current,
it is a ritual in Akwatia Line”.
•
A hairdresser added that:
“During days of low current, my customers patronise the services of other
hairdressers who may have normal power supply or generators”.
15
CAN THEY PAY IF THEY ARE GIVEN SPECIAL
DISPENSATION?

Employment levels in the three slums were high (98%).

Average monthly household income in the slums was GH¢459.20
compared to the national average of GH¢101.40.

The average household monthly expenditure was GH¢243.6.

Household daily savings capabilities:
◦ Old Fadama = GH¢2.7 (US$1.8)
Amui Dzor = GH¢2.6 (US$1.73)
◦ Akwatia Line = GH¢2.0 (US$1.33).
16
CAN THEY PAY IF THEY ARE GIVEN SPECIAL
DISPENSATION? – cont’d

The slum dwellers are economic migrants who are determined to
earn a living in the cities.
17
THE SLUMS ROLES IN THE URBAN ECONOMY

The slum dwellers produce
cooking stoves for the urban
residents.
• They produce Kenkey and
sell to the urban dwellers
18
THE SLUMS ROLES IN THE URBAN ECONOMY –
CONT’D
•The slum dwellers (head porters)
carry goods from market centers to
bus terminals
•The slum dwellers produce
groundnut paste for the
consuming urban population
19
THE SLUMS ROLES IN THE URBAN ECONOMY –
CONT’D

Employment creation.

Supply of raw materials
(e.g. Scrap metals to
manufacturing
companies.

Etc.
20
WILL THEY PAY IF THEY ARE GIVEN SPECIAL
DISPENSATION?

Their representative at the kickoff meeting indicated their
willingness to pay.

All the households and enterprises expressed their willingness to
pa y electricity bills. Why?

Because they currently pay monthly electricity bills to meter
owners:
◦ Old Fadama - GH¢8.2 (US$5.5);
◦ Amui Dzor - GH¢14.8 (US$9.9); and
◦ Akwatia Line GH¢7.0 (US$4.7).
They also paid initial
connection fee which
ranged from GH¢20 – 30
(US$13.3 – 20)
21
CONCLUSION

The slum dwellers make productive uses of electricity despite the supply
constraints that limit their access.

The slum dwellers pay and will continue to pay electricity bills.

What is required is for their access to electricity be formalised to support
their productive activities.
22
RECOMMENDATIONS

ECG could review their electricity access requirements by deemphasising building permits. This will:
◦ cut down losses to the utility companies emanating from theft.
◦ enable households pay realistic tariffs based on their level of
consumption.

ECG should then collaborate with community leaders to wean the
system off “By-Passes”.

Energy stakeholders (MoE, EC and researchers) should consider the
slums in as stakeholders in access planning and implementation.
23
Thank you
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