Guinea’s electricity surge: powering local small businesses and communities – World Bank Group

Report on the Socio-Economic Impact of Improved Electricity Access in Boké, Guinea

1.0 Introduction: Energy Poverty and its Impact on Sustainable Development

Prior to 2022, the city of Boké, Guinea, faced significant developmental challenges rooted in severe energy poverty. The lack of reliable and affordable electricity created a barrier to achieving several Sustainable Development Goals (SDGs). The situation was characterized by:

• Economic Stagnation (SDG 8): Frequent power outages stifled productivity for small and medium-sized enterprises (SMEs), forcing a reliance on expensive and inefficient generators. This diverted capital from investment and growth towards operational fuel costs.
• Increased Poverty (SDG 1): High operational expenses, such as the reported 300,000 GNF (approx. $35 USD) daily fuel cost for one entrepreneur, eroded profit margins and made savings impossible, trapping business owners in a cycle of financial precarity.
• Social Instability (SDG 11): Unreliable public services fueled civil unrest and social protests, undermining the development of safe, resilient, and sustainable communities.
• Environmental Degradation (SDG 7, SDG 13): Widespread use of fossil-fuel-powered generators contributed to local air and noise pollution, running counter to goals for clean energy and climate action.

2.0 Intervention: The Gambia River Basin Development Organization (OMVG) Interconnection Project

The World Bank–financed OMVG Interconnection Project was implemented as a strategic infrastructural development to address the region’s energy deficit. This initiative directly supports SDG 9 (Industry, Innovation, and Infrastructure) and SDG 17 (Partnerships for the Goals) by establishing a cross-border energy network.

2.1 Project Specifications

1. Construction of a 225 kV transmission ring.
2. Interconnection of the national grids of Guinea, Senegal, The Gambia, and Guinea-Bissau.
3. Facilitation of electricity trade and access to clean hydropower resources.
4. Commissioning of new transmission lines and sub-stations in Boké in late 2022.

3.0 Outcomes and Contributions to Sustainable Development Goals

The introduction of a stable and affordable electricity supply has served as a catalyst for multi-faceted development in Boké, with significant progress observed across several SDGs.

3.1 Advancement of SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action)

The project has successfully transitioned the local economy from a dependence on polluting, high-cost generators to a grid supplied by clean hydropower. This directly provides access to affordable, reliable, sustainable, and modern energy for all, while simultaneously reducing the carbon footprint of local businesses.

3.2 Promotion of SDG 8 (Decent Work and Economic Growth) and SDG 1 (No Poverty)

The impact on the local economy has been immediate and transformative. A case study of a local welding entrepreneur, Safiatou Bangoura, illustrates the project’s success in fostering inclusive and sustainable economic growth.

• Cost Reduction: Elimination of daily generator fuel expenses freed up significant capital for reinvestment.
• Business Expansion: Savings were invested to open a second workshop, demonstrating sustainable business growth.
• Job Creation: The expansion led to the hiring of five new employees, contributing directly to decent work and local employment.
• Income Growth: The entrepreneur’s client base doubled and monthly income tripled, directly contributing to poverty reduction at the household level.

3.3 Empowerment of Women and Promotion of SDG 5 (Gender Equality)

The project has had a pronounced impact on female entrepreneurs. By removing a critical barrier to business operations, it has enhanced the economic agency of women like Safiatou Bangoura, enabling them to scale their businesses, create employment, and assume a greater leadership role within the local economy. This contributes to the economic empowerment of women, a key target of SDG 5.

3.4 Building Sustainable Communities in line with SDG 11

The revitalization of local industries and the creation of new small businesses contribute to making Boké a more inclusive, safe, and resilient city. Reliable electricity improves the quality of life, enhances public services, and reduces the underlying frustrations that previously led to social unrest, thereby fostering a more stable and sustainable community environment.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights several interconnected issues that directly and indirectly relate to a number of Sustainable Development Goals. The central theme of providing reliable and clean electricity acts as a catalyst for progress across various economic and social domains.

• SDG 7: Affordable and Clean Energy: This is the most prominent SDG addressed. The entire article revolves around the transition from an unreliable, expensive, and polluting energy situation (generators) to stable, affordable, and clean electricity (hydropower) through new infrastructure.
• SDG 8: Decent Work and Economic Growth: The provision of reliable electricity is explicitly linked to economic transformation. It has enabled small businesses to grow, increase productivity, create new jobs, and boost incomes, fostering local economic development.
• SDG 9: Industry, Innovation, and Infrastructure: The article focuses on a major infrastructure project—the OMVG Interconnection Project—which includes a transmission ring, lines, and sub-stations. This new infrastructure is described as the foundation for revitalizing local industries and supporting small enterprises.
• SDG 5: Gender Equality: The narrative is centered on the story of Safiatou Bangoura, a female entrepreneur. The project’s impact is shown through her economic empowerment, as she was able to expand her business, increase her income, and hire employees, demonstrating how access to resources like energy can help close gender gaps in economic participation.
• SDG 1: No Poverty: By reducing the crippling operational costs for small businesses (eliminating daily fuel expenses) and enabling income to triple, the project directly contributes to poverty reduction and financial stability for entrepreneurs and their employees.
• SDG 11: Sustainable Cities and Communities: The article mentions that prior to the project, unreliable services fueled “social protests” and “civil unrest.” By providing a stable and essential service like electricity, the project helps create a more stable, safe, and resilient community, reducing social tensions.

2. What specific targets under those SDGs can be identified based on the article’s content?

The article provides specific examples and outcomes that align with several SDG targets:

1. Under SDG 7 (Affordable and Clean Energy):
   • Target 7.1: Ensure universal access to affordable, reliable and modern energy services. The project’s success in bringing “stable, affordable electricity to thousands” in Boké directly addresses this target, moving the community away from unreliable service and frequent blackouts.
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix. The article states the project enables “access to clean hydropower,” which contributes to this target by replacing fossil-fuel-powered generators with a renewable source.
   • Target 7.b: Expand infrastructure and upgrade technology for supplying modern and sustainable energy services. The construction of the “225 kv transmission ring,” “new transmission lines and sub-stations” is a direct implementation of this target.
2. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship… and encourage the… growth of micro-, small- and medium-sized enterprises. Safiatou’s story is a case study for this target; she expanded her welding business, hired staff, and increased her income, showcasing the growth of a small enterprise.
   • Target 8.5: Achieve full and productive employment and decent work for all women and men. The article notes the project is “powering jobs,” with Safiatou hiring “five local employees,” which is a direct contribution to this target.
3. Under SDG 9 (Industry, Innovation, and Infrastructure):
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The OMVG Interconnection Project is described as a “game changer” that provides reliable infrastructure, leading to job creation and community revitalization.
4. Under SDG 5 (Gender Equality):
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life. The project facilitates the economic empowerment of a female entrepreneur, Safiatou, allowing her to grow her business and become a job creator, which is a key aspect of economic participation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article contains both quantitative and qualitative data that can serve as indicators for measuring progress:

• Indicator for Target 7.1 (Access to reliable energy): The shift from “frequent outages” and having to work at “1 a.m.” to having “stable, affordable electricity” for “thousands” of people is a clear qualitative indicator of improved access and reliability.
• Indicator for Target 8.3 (Growth of small enterprises):
  • Number of new businesses created (“sparking new small businesses”).
  • Business expansion (Safiatou invested in a “second welding shop”).
  • Increase in customer base (Safiatou “doubled her client base”).
  • Increase in income (Safiatou “tripled her monthly income”).
• Indicator for Target 8.5 (Job creation): The number of new jobs created is explicitly mentioned. Safiatou “hired five local employees.”
• Indicator for SDG 1 (Poverty reduction): A financial indicator is the reduction of operational costs. The article quantifies the previous daily expense on fuel as “over 300,000 GNF (about $35 US) every single day,” which was eliminated, allowing for savings and investment.
• Indicator for Target 7.2 (Share of renewable energy): The article explicitly mentions the energy source as “clean hydropower,” indicating a shift towards renewable energy.
• Indicator for Target 9.1 (Infrastructure development): The article specifies the infrastructure built: a “225 kv transmission ring,” “new transmission lines and sub-stations.”

4. Table of SDGs, Targets, and Indicators

Source: worldbank.org