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Publication - Can Mozambican Households Afford SHS? Insights From a Local Survey

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Title
Can Mozambican Households Afford SHS? Insights From a Local Survey
Publisher
USAID & Power Africa
Author
USAID, Power Africa, EnDev, GeoPoll, GreenLight, The World Bank, FSDMo
Published in
April 2020
Abstract
* SAEP conducted a Solar Home System affordability-and-willingness-to-pay survey to inform the plans and strategies of the players in the electrification program of Mozambique. Survey results are of interest to the Government of Mozambique, SHS companies, and Cooperating Partners
  • Focus areas included (a) household expenditure and willingness to pay; (b) SHS awareness,ownership and perception; and (c) mobile phone and mobile money usage
  • Survey estimated the ability and willingness to pay for SHS in two ways: (1) through data collected on weekly spend/consumption of candles, kerosene, torch batteries, mobile phone charging and transport; and (2) through self-reported willingness to pay
  • Higher than expected in Mozambique – even allowing for differences in calculation, surpassed affordability levels in Zambia and Kenya, both of which have higher GDP
  • 22% of HHs (824,000) can afford basic SHS today at USD $7.50 per month
  • As many as 45% of HHs may be able to afford basic SHS if they can pay a premium
  • 75% of those who own solar products bought them through a one-time payment
  • Gradual increase in payment via installments as products get larger/more advanced
  • 85% of those who pay in installments spend more than USD $7.50 per month
  • Awareness & ownership is high for an early-stage market – 68% of HH have heard of solar products and 27% of HH already own and use them
  • 72% of HH own Tier 1 products, while 28% have a TV or larger appliance (i.e. Tier 2-3)
  • Usage consistent with comparable markets – 83% of HHs use a mobile phone and 44% use

mobile money

  • Typical mobile money transaction for 56% of households is over USD $8.00 – higher than the average SHS monthly installment of USD $7.50
  • An estimated 4.2 million HHs will not have access to the grid in 2024 – 2.5 million of these HHs need financing support to purchase SHS today
  • Total financial support required to bridge the affordability gap is approximately USD 350 million
  • SHS companies and Cooperating Partners should aim to work together to close this gap
URL
link to the document


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