Abstract
Productive energy services are often overlooked in
domestic energy access programs; yet people cannot
raise their welfare except by engaging in economic
activities. Household energy demand(s) should be
viewed in two components, that is, residential and
productive energy services. Although the South African
government prioritised electricity distribution after
independence, this programme was framed in terms of
domestic residential use. Thus, the supplied electrical
power was limited to low amperage current, adequate
only for household lighting and electronics.
Intrinsically, the National Electrification Programme
and the Free Basic Electricity Programme [1]) that
have substantially increased electricity access in the last
decade, did little to spur Small, Medium and Micro
Enterprises [SMME] growth in urban penumbras and
rural localities. Yet, perambulates in these areas
indicate that people are engaged in enterprises that
yearn for cleaner, reliable, and cost-effective energy
inputs. Commercial cooking is a prevalent business in
the low-income settlements, which is powered mostly by
basic fuels and low efficiency combustion technologies.
Although SMMEs contribute about a quarter of gross
capital formation, they have a major potential in
employment creation, especially within the current
context of negative jobs growth in government and
large enterprise sectors. This paper argues that SMME
growth can be consolidated and accelerated through
provision of safe, affordable and efficient energy
technologies. Evidence for this claim is based on a
quantitative survey that was carried out among street
vendors in Alexandra Township, Johannesburg.
Discussions were held with the business owners on
alternative fuels and modalities for transitioning the
informal business sector to use of clean energy
resources. The entrepreneurs cite energy poverty and
poor premises as the biggest constraints to their
businesses.