2006 Annual Report

Lighting up Madagascar

Looking at a satellite picture of the Earth at night provides a startling illustration of our planet’s development inequalities: while much of the industrial world is awash with bright artificial light, most developing countries, particularly in Africa, are drowned in darkness. Without access to electricity, businesses cannot grow, hospitals cannot run, schools are paralyzed and the huge potential offered by information and communication technology cannot be seized. Yet, in the areas of the world where the need for development is most urgent, electricity supply is often very poor. In Madagascar, less than three percent of people living in rural areas have access to electricity. The island’s region of Sava is renowned for its vanilla production, but the potential benefits are far from fully reaped due to chronic energy shortages. In order to tackle this problem, UNDP, through its GSB initiative, helped forge a partnership among three large electricity producing companies (France’s EDF, Germany’s RWE and Canada’s Hydro-Québec) to provide affordable electricity to Madagascar’s vanilla-producing area, as well as surrounding villages. With a total investment of $19 million, the participating companies will use new technology and distinct pricing structures for small- and medium-sized enterprises, government and villages, generating a return of 17 percent. In addition to injecting new energy into one of the most profitable sectors in Madagascar, the project will increase access to education, health, water and sanitation for rural populations and will reduce reliance on diesel and forest wood.