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Tanzania is among the countries with lower rural electrification rates. It is estimated that
less than five percent of the rural population are using grid electricity services. This study
assesses the contribution of rural electrification to household income in Moshi District,
Tanzania. Specifically, the study aimed at identifying income generating activities
undertaken using grid electricity, assessing the contribution of grid to household income as
well as identifying the challenges in utilization of grid electricity services in income
generating activities. A multistage sampling technique was used to select a total 120 (60
with grid and without grid services respectively) respondents for the study. The study
identified among others, iron wedding, compact disc burning and grain milling as income
generating activities influenced by presence of grid electricity. The household annual
income ranged from 800 000 Tshs to 46 000 000 Tshs and there were statistically
significant differences in income between households with grid electricity services and
those without. In addition, the study identified reliability of services, high application
standards, and higher bill as challenges associated with grid electricity services. The study
concludes that grid electricity contributes to increased household income. Furthermore, the
study recommends that, the government and development partners should secure
necessary financial resources to invest in rural electrification. |
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