COVID-19: 5000 jobs lost in Uganda’s off-grid power sector

Off-grid electricity sector can contribute to achieving most of the country’s development targets faster

Kampala, Uganda | RONALD MUSOKE | Over 5,000 jobs in Uganda’s decentralized renewable energy (off-grid power) sector have been lost over the last two years due to the COVID-19 pandemic according to a new study published on Oct.20.

The report was published by ‘Power for All,’ a global campaign to end energy poverty, in collaboration with the Uganda National Renewable Energy and Energy Efficiency Alliance (UNREEEA). It is part of the Power for All’s Powering Jobs Census 2022 series and it was intended to examine the labour market for the sector in Uganda, Ethiopia, India, Kenya, and Nigeria.

The report titled, “Powering Jobs Census 2022: The Energy Access Workforce Uganda,” found that Uganda’s off-grid energy sector–which includes pico-solar appliances, solar home systems, and commercial and industrial standalone systems–employed close to 30,000 workers in 2021, down from 35,000 in 2019, prior to the COVID-19 pandemic.

The country’s economic downturn due to the pandemic and the stringent government lockdowns, also led to a drastic reduction in solar home systems sales by nearly a fifth, from 400,000 products sold in 2019 to 263,500, in 2021.

According to the report, the bulk of the jobs in this sector were in the home solar systems sub-sector, accounting for 99% of the sector’s employment with the other 1% going to both the mini-grids and commercial and industrial systems. The report warns that unless market conditions improve, employment creation in this sector is expected to remain stagnant with no additional jobs until 2025.

However, the report notes that the loss of jobs was not unique to the off-grid power sector only. According to a survey by the Uganda Bureau of Statistics (UBOS) and the World Bank, Uganda’s employment rates dropped by almost 12% towards the end of 2021 compared to the pre-pandemic employment level in 2019.

Low access to electricity

The findings come at a time when the government is still struggling to improve electricity access, especially in Uganda’s rural areas where about 75% of the country’s estimated 44 million people reside according to UBOS figures.

The government considers electrification of the country a national priority and this is at the core of its NDPIII (third national development plan) which targets 60% access by 2025. However, connectivity to the grid for remote rural communities takes time and is costly with the rural population solely relying on solar.

Experts in the sector say off-grid electricity can contribute to achieving Uganda’s targets faster, sustainably, and cost-effectively. Therefore, the stagnation of employment in the sector is not good news for the country’s efforts to achieve its development agenda.

“The private sector has been at the forefront of advancing decentralized renewable energy technologies which have contributed up to 38% of the current national electricity access rate of 57%,” said Bernard Mbaine, the vice chairperson of the Uganda National Renewable Energy and Energy Efficiency Alliance (UNREEEA).

Mbaine says women are the most affected by lack of access to clean energy technologies since they spend most of their time at home and are exposed to indoor pollution from unclean cooking and lighting.

He notes that the Uganda government must work closely with the private sector in order to achieve 80% electrification by 2040. He adds that the women must be equally involved in off-grid electricity sector discussions and activities if the government is to see the change that it desires.

Women’s participation still low

Meanwhile, the study found that participation of women in the off-grid energy sector in Uganda is low at 28%, a number which is significantly smaller than the country’s overall economy at 49%.

On a positive note, the sector is close to achieving pay parity between men and women employed in the sector.  According to the census, women in the sector earn 96% of what their male counterparts earn. The highest pay gap exists for semi-skilled workers at 95%, and the lowest for women in top management roles at 98%.

The report highlights areas of potential intervention to develop the sector, including building the capacity of the sector workforce. The study identifies 12 key areas in which further training is required by Ugandan off-grid power firms.

These include soft skills, such as communication, interpersonal skills, and time management, and hard skills, including installation and commission, marketing, maintenance, and project management.

Installation and maintenance skills, necessary to support growth in larger scale mini-grids and commercial and industrial, were also highlighted by the off-grid power companies as important focal areas for training.

Going forward, the report says developing Uganda’s off-grid electricity sector will require concerted efforts from government agencies and the private sector. It will also need sound policies and adequate regulations to scale up the rollout of micro- and mini-grids.

According to the report, the technologies that comprise the off-grid electricity sector are essential to achieving Sustainable Development Goal 7 (universal energy access) but the sector also contributes to achieving Sustainable Development Goal 8 through job creation.

In order to achieve universal electrification, Uganda will need more than conventional approaches to energy access. The report argues that any attempt of electrifying the country solely through extension of the main grid would require about a fifth of the country’s annual GDP.

On the other hand, an integrated energy model can contribute to achieving Uganda’s targets faster, sustainably, and cost-effectively. For instance, connection costs can be reduced by 50% through integrated energy approaches that combine the advantages of traditional utilities and off-grid energy technologies.

“The findings of this study can be used to raise awareness of the off-grid electricity sector’s potential for job creation and to spark conversation about how to train the workforce for energy access,” said Kristina Skierka, the CEO of Power for All, “As Uganda’s off-grid electricity market matures, so do the possibilities for employment generation within the sector.”

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