Ethiopia has population of about 86 million people with the large majority (83%) living in rural areas and growing at 2.6% a year. According to the most recent national statistics, only 3.7 million households in the country were connected to the grid (WMS, CSA, 2012). In other words, national grid covers of only 23% of households; of which 88% are in urban areas. 

Most of the households not connected to the grid predominantly rely on kerosene and spend about 5% of their household consumption expenditure on lighting. Kerosene is unfortunately seen as the only affordable option for lighting for the rural households. It is however dangerous, increasingly expensive and a source of GHG emissions. The lack of clean and affordable lighting options also hinders development of small and medium sized enterprises, delivery of public services including health, security and education. 

Recent developments in off-grid lighting industry present an opportunity to offer an affordable energy solution to households at the bottom-of-the-pyramid. Solar lanterns and dynamo powered lighting products are a clean, modern, and affordable lighting solution that have proven themselves as commercially viable alternatives to kerosene. 

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Project Document | Proposed Decision
Approved on February 4, 2014 (Approved Decision)
Approved amount(s):
USD 1.6 million (grant funding)

Comments and Responses:
Netherlands (January 10, 2014) 
United Kingdom (January 10, 2014) 
IFC Response to Netherlands, United Kingdom (January 22, 2014)