Economic growth and job creation are essential to alleviating poverty and improving lives. More reliable, accessible and affordable infrastructure can provide a major boost to businesses, allowing them to grow and create more and better jobs.
PIDG measures impact on employment by recording the direct jobs created in the construction and operation of infrastructure. The 20 PIDG-supported projects which reached financial close in 2017 expect to create 6,235 direct short-term construction jobs and 10,335 long-term jobs in the operation of the infrastructure.
PIDG supported projects also create jobs indirectly through supply chains, and many facilitate job creation in local economies by providing essential inputs for business.
PIDG assessed the economic and job creation value of two energy generation projects in Senegal. Senergy 2, a 20MW solar plant, and Tobene, a 96MW thermal power plant, are a crucial part of PIDG’s work to expand access to infrastructure and support economic development in Africa and Asia. Combined, the two projects will lower the cost of electricity for consumers by an estimated 6%. Lower costs allow firms to use more electricity and increase production. It is estimated this will foster economic growth worth more than $400m, creating over 68,000 jobs nationally.
Gathering reliable data in nascent markets is challenging, and so PIDG has to rely on careful assumptions and opts for conservative figures. Nonetheless, the findings give an important indication of the scale of impact that power infrastructure has.
Senergy 2, Senegal