Understanding the drivers of electricity access and willingness to pay for reliable electricity in African refugee settlements: Evidence from Zambia, Malawi, and Uganda

Abstract

This study investigates electricity access and willingness to pay for reliable electricity among refugees living in settlements in protracted situations in Sub-Saharan Africa. Field data from 1322 respondents in Dzaleka (Malawi), Adjumani (Uganda), and Meheba (Zambia) reveal varying access rates ranging from under 20 % to approximately 80 %, with older and wealthier settlements reporting higher values. Also, the level of access is low (Tier 0 to 3) and supply is unreliable. Average willingness to pay differs across locations (the household mean in Meheba is 4.5 times larger than in Adjumani and more than double that in Dzaleka) but is similar in relative terms (corresponds to about 10 % of the local monthly income). Also, the distribution of the willingness to pay within each location is left-skewed, with a significant share of respondents indicating a value of zero (28 % of households in Adjumani). Using socio-economic data collected from the field, we identify and analyse a set of potential drivers of electricity access and willingness to pay. The regression models' results confirm the crucial role of income, identify certain key end-user characteristics, and reveal the awareness of the benefits of electricity services as a significant driver for households. These findings emphasise the urgency of addressing electricity access disparities and the critical role of tailored interventions and policies promoting affordability and income-generating opportunities for refugees in protracted situations. Preliminary insights into the complex role of drivers specific to the humanitarian energy context (prior electricity access, humanitarian aid, and years spent in the settlement) suggest further research.