Analysis of Connection Fee Subsidies on Rural Electrification Projects in Zambia: Case of Chibombo District.

Abstract

The research analysed the connection fee subsidy on sustainable electrification of rural areas with respect to Chibombo district – Zambia where the connection fee subsidy mechanism has been implemented under the Electricity Services Access Project. The study used a sequential explanatory mixed-methods approach. The results reveal that 938 beneficiaries had been connected, almost three-fold the initial target of 385. Additionally, the study established a statistically significant positive correlation between connection fee subsidy and an increase in electricity connections and sustainable electricity consumption levels. Also revealed is a negative correlation between high connection costs and rural electrification rates. Further, the study identified critical success factors including economic sustainability and institutional capacity, and recommends a sustainability framework for sustainable rural electrification.