Benefits and challenges to productive use of off-grid rural electrification: The case of mini-hydropower in Bulongwa-Tanzania

This paper presents a case study of a minigrid powered by a small hydro plant in the southern highlands of Tanzania. The approach was chosen to provide in-depth understanding on benefits and challenges facing a rural minigrid. The case focuses on productive use; i.e. electricity as a direct input to the production of goods or provision of services. The study applies an interdisciplinary approach consisting of a mix of qualitative and quantitative methods, which included stakeholder and user interviews and measurements of output power and water flow. The analysis shows that certain entrepreneurial activities emerged as an outcome of electricity access thru the minigrid; barber shops, welding machines, mobile phone charging, salons, photo copy, and lighting business centres. Major challenges are related to the initial set up of the mini-hydro power plant, i.e. to only service the hospital, as the idea and need for building a minigrid developed much later. A tentative conclusion is that subsidized electricity will not promote rural businesses unless other criteria are met. Moreover, the minigrid faced a number of technical problems partly because of lack of adequate technical resources such as technicians and spare parts but also from the poor-planning and non-saving culture. The study concludes that the minigrid has led to productive uses that are found elsewhere in grid-connected rural communities. The finite supply of energy however means that there are restrictions using electricity for certain productive use – there is a load shedding schedule in place for some of the power intensive machines - due to overload caused by the load and large number of connections. Finally, there is apparent room for improvement not the least regarding the tariffs, which do not reflect market price and hence may affect the sustainability of the system

Inter-Firm Linkages and Learning. An Empirical Exploration of Firms in the Third World

The main purpose of this study is to contribute to a better understanding of how inter-firm linkages determine the conditions for firm learning. The overall objective is to explore the relationship between the organizing of linkages and the process of accumulating capability. These goals are achieved by focusing on the analysis of how a firm\u27s diverse set of linkages affects the conditions for learning. The conceptual framework developed differentiates between three types of inter-firm linkages; activity coordinating, resource combining, and actor connecting. Learning, defined as the process of capability accumulation, is assumed to be related to the nature and pattern of a firm\u27s linkages. In order to link the framework with real life phenomena, the methodology of the study reflects a hermeneutic approach which emphasizes understanding and interpretation rather than verification of theories and hypotheses. For the sake of `understanding\u27 three case studies from firms in Kenya and Tanzania are presented that explore the different roles of various types of linkages in determining conditions facilitating or constraining learning. The main assumption that a firm\u27s linkages comprise a precondition for learning has proven fruitful, in the light of the study\u27s empirical findings. The study points to the central influence on capability accumulation of establishing different types of linkages. The cases reveal that the firms had a diverse and differentiated set of linkages. These were typically manifested in market-like relationships with other local firms, whereas linkages to international firms were of relational nature. Actual linkage formation is explained as the result of firms\u27 efforts, which in an interactive fashion, are linked to the type of opportunity provided to firms. However, this is to a great extent the perceived set of opportunity from the perspective of a firm rather than the actual reality. The study concludes that the prevalent way of organizing inter-firm linkages has created vicious circles which should be seen as a challenge to policy makers to counter negative effects