Abstract:
Electrification in rural areas is one of the global priority agenda. African governments
especially governments in the Sub — Saharan Africa countries have adopted the agenda
and make one of the policy areas of concern. Tanzania in particular has a number of
initiatives that focus on increasing access, usage and maintenance of electricity in rural
area. Rural Electrification Agency (REA) have been mandated to supply and make easy
and affordable access and usage of electricity in rural areas of Tanzania. However, in the
globe and Tanzania in particular, financial capability is increasingly becoming a central
public policy concern as it impacts financial stability, inclusion, effective functioning of
financial system and development at large to include choices of access to social services
such as electricity. This study sought to investigate the financial capability of rural
residents in terms of the socio-economic activities they do, financial knowledge, financial
skills on access to electricity together with the perception of the rural residents on access
to electricity. A cross section research design was applied where data were collected on
a single point in time. A survey technique was used to collect information from 82
households. 12 key informant interviews specifically with the Rural Electrification
Agency (REA) staff and the village executive officers were done. Findings show that
differences of income across households, budget skills and priorities of spending do
affect access to electricity. Perception of rural residents on price and regular availability
of electricity also affect much access to electricity. It is concluded that, financial
knowledge and skills are not a very significant problems associated with access to
electricity but rather attitude. It is recommended that costs involved in rural
electrification, ownership of the process, affordability and assurance of the service
availability be part of the country's policy to stimulate access to electricity for the rural
residents.
