122 ELECTRICITY ACCESS IN SUB-SAHARAN AFRICA
lack of local participation, and an unfavorable economic and political environment, among other reasons (Baah-Dwomoh 2016; Chase and Wilkinson 2015). There are significant differences between the notion of identifying binding constraints and addressing them. First, this report does not advocate a “one-size-fits-all” strategy that ignores inter- and within-country heterogeneity. On the contrary, the report requires more context-specific research to guide policy with more precision. Second, thinking of electrification as a necessary condition for modern economic activities means that there need not be simultaneity in the investment. It instead suggests that sequencing is welcomed but should be informed by analysis of complementary factors to determine the right sequence or packages of interventions. Third, investments in complementary factors need not be addressed across the board and in all c ommunities. The private sector, when given the right incentives, can play an essential role in providing ancillary investments and services that will complement the provision of electricity for more significant impacts. The current Anchor Business Community model in rural electrification is a good example on which to build, to promote further impact by engaging the private sector in the provision of complementary factors as well as investment in electrification. Anchor Business Community is a business model of electrification in which electricity companies leverage anchor customers to reduce the financial risk of extending electricity to rural communities where demand is likely to be low and uncertain (Givens 2016). In this framework, the electricity provider identifies an anchor customer with high demand for electricity to ensure the financial viability of electricity provision, local businesses with demand for electricity for productive uses, and community households with demand for basic energy services. The model has been piloted in Kabunyata village, in the Luwero district of Uganda, where a telecommunications company was identified as the anchor c ustomer. A solar generator set was provided to supply electricity to the mobile telecommunication tower as well as to extend power to households and small businesses in the village (Kurz 2014).
Identifying Complementary Factors: Evidence from the MTF Data The World Bank Enterprise Surveys report issues that firms identify as major constraints to their operations and growth. Figure 5.2 uses the most recent survey for Sub-Saharan African countries2 to assess the issues that firms reported