Energy sector lost 5,000 jobs to Covid, report shows
What you need to know:
- The report adds that Covid-19 led to a drastic reduction in the sale of Decentralised Renewable Energy (DRE) technologies by nearly 20 percent, leading to the loss of more than 5,000 jobs
Up to 5,000 Ugandans under the Uganda decentralised renewable energy sector lost employment during the two years of Covid-19 induced lockdown, a new report has revealed.
The report released by Power for All, an NGO advocating for a market based growth of decentralised renewable energy, yesterday states the sector has seen a 15 percent reduction in its employment workforce in the last two years in the aftermath of the two Covid-19 lockdowns.
The report adds that Covid-19 led to a drastic reduction in the sale of Decentralised Renewable Energy (DRE) technologies by nearly 20 percent, leading to the loss of more than 5,000 jobs.
It says unless market conditions improve, employment creation is expected to remain stagnant with no additional jobs until 2025.
Ms Kristina Skierka, the NGO’s chief executive officer, said all those involved in the energy sector and decision makers should use the report to design new strategies to address the current economic slowdown.
“The study found that Uganda’s DRE 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,,” said Ms Skierka.
Countries surveyed
While the report does not indicate how many companies were surveyed in Uganda alone, it says the findings are based on a survey of more than 350 firms across Ethiopia, India, Kenya, Nigeria, and Uganda.
According to the report, Uganda’s current national electrification rate remains low with only 57 percent of households having access to electricity and two-thirds of them depending on off-grid connections, while only 25 percent have access to electricity for more than four hours per day.
“Limited access is more prevalent in rural areas where only a third of the population has access, compared to 70 percent in urban areas,” it adds.
Mr Bernard Mbaine, the vice chairperson of Uganda National Renewable Energy and Energy Efficiency Alliance, said decentralised renewable energy can contribute to the country’s targets faster, sustainably, and cost-effectively.
He also said lower investment in access to electricity affects more women, exposing them to indoor pollution.
“The private sector has been at the forefront of advancing DRE technologies which have contributed up to 38 percent of the current national electricity access rate of 57 percent. The government must work closely with the sector to achieve 80 percent electrification by 2040,” Mr Mbaine said.
