Dealing with a global issue: contributing to poverty alleviation

Abstract

Purpose

To present one approach to integrating societal expectations in business as adopted by Electricité de France through their Access to Energy Program.

Design/methodology/approach

The objective is achieved through three main actions, one of which is explored here: rural electrification through the setting‐up of rural energy services companies in developing countries which bring energy (electricity or gas) services to isolated populations, thereby encouraging the development of local economic activities and contributing to poverty reduction.

Findings

Findings range from the importance of an existing and suitable institutional framework, through the reduction of start‐up costs and the cash‐flow problems of these small companies, to the definition of a sustainable model (fee for service) and the provision of accompanying services (gas, water, telephone, etc.) and capacity building.

Research limitations/implications

Further research will be determined following monitoring and evaluation feedback from these local companies.

Practical implications

Working in countries with suitable institutional frameworks and with grant financing to cover most of initial equipment investment to keep tariffs low. Establishing local business zones with higher power levels to encourage local economic development. Ensuring maximum equipment efficiency (particularly batteries).

Originality/value

Identification of a sustainable model in rural electrification that is now being replicated on a major scale in Morocco and South Africa.

Citation

Denby Wilkes, V. (2005), "Dealing with a global issue: contributing to poverty alleviation", Corporate Governance, Vol. 5 No. 3, pp. 61-69. https://doi.org/10.1108/14720700510604706