RURAL ELECTRIFICATION: AN ECONOMIC TRIGGER IN THE DORMAA DISTRICT OF GHANA

Abstract

Literature on energy recognizes the electrification of rural areas as an important economic development trigger. As the impact of rural electrification begins to manifest, rural areas begin to look different. The change becomes difficult to recognize in retrospect and also to foresee even before the intervention. The impact of electrification varies among various sectors of the rural economy. This paper examines rural electrification in the Dormaa District of Ghana by highlighting its linkage with small-scale enterprises (SSEs). The paper reports on a survey research that entailed mainly the collection of primary data using key informant interviews and questionnaire administration. Conventional statistical analysis of data obtained was carried out using Statistical Package for Social Scientists (SPSS). The survey revealed that manual power, liquid fuels, electricity from generators, wood fuels and charcoal were being used to run small-scale enterprises in Dormaa District. However, the introduction of grid electrification in 1993 resulted in the reduced usage of the energy'sources. Manual power had reduced from 35 - 16%, liquid fuels 42 - 8%, wood fuel4 and charcoal 8- 5% and electricity (generator to grid) increased from 15- 71%. Observed trends in spatial and temporal dimensions of rural electrification and small-scale enterprises failed to confirm significant positive linkages between rural electrification and income, production and employment. The paper recommends the vigorous provision of grid electricity in rural Ghana to expedite development.