The government, through the Jobs Creation Commission (JCC), aims to explore the untapped job creation potential of micro, small, and medium enterprises (MSMEs) through the use of productive use of energy (PUE) technologies. PUE technologies have been defined as solar-powered systems that enable agricultural, commercial, or industrial activities.
Across three high-potential value chains – horticulture, wheat, and milk, PUE technologies present opportunities to mechanize tasks and expand production capacity, creating on the order of 190,000 jobs, according to a report co-authored by the Job Creation Commission Ethiopia, Precise Consult’s Ethiopia Market Accelerator Programme (EMA), Africa Clean Energy Technical Assistance Facility, and Open Capital Advisors.
Here are the recommendations put forward to help increase access to PUE technologies and hence create jobs, based on key market challenges:
• Replicate previously successful foreign currency financing interventions and advocate for prescribed funding towards PUE technologies within existing initiatives.
• Encourage additional blended finance facilities for PUE technologies.
• Advocate for PUE companies to be put on the forex priority list.
• Continue to close information gaps for PUE companies.
• Create an enabling environment for demand-side subsidies (DSS), which can play a role in addressing the low affordability associated with PUE technologies.
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