Welcome to CENFACS’ Online Diary!
09 March 2022
Post No. 238
The Week’s Contents
• Urban Poverty Reduction Project
• Action 2: Reduce or Phase Down of Fossil Fuel Subsidies
• Light Season’s New Energy Projects
… And much more!
Key Messages
• Urban Poverty Reduction Project
Urban Poverty Reduction Project (UPRP) takes stock of some of the key matters raised in the 74th Issue of FACS (1) regarding the Dilemmas Faced by Africa-based Sister Organisations in Helping to Reduce Poverty in the Context of Rising Urban Population in Africa. One the matters discussed in this Issue was urban poverty itself.
In this Issue, urban poverty was conceptualised by referencing to the work of Anna Belén Cano Hila (2), who argued that
“Urban poverty refers to the set of economic and social difficulties that are found in industrialized cities and that are the result of a combination of processes such as: the establishment of comfortable living standards, the increase of individualism, processes of social fragmentation, and the dualization of the labour market, which translates into social dualization”.
Urban poverty can also happen in developing cities like those of Africa. This set of economic and social difficulties or simply urban poverty has increased with COVID-19 and its socio-economic impacts in those developing cities. Likewise, the far-reaching ramifications of the Russia-Ukraine conflict may exacerbate these difficulties.
UPRP is designed to work with our Africa-based Sister Organisations so that they can address these matters on the grounds where our operations are under way.
UPRP falls within the scope of the United Nations (3) Sustainable Development Goal 11 of Making Cities and Human Settlements Inclusive, Safe, Resilient and Sustainable.
For those who may be interested in supporting UPRP, they can find its key elements of UPRP under the Main Development section of this post.
• Climate Action 2 (From 09 to 15/03/2022): Reduce or Phase down Subsidies that artificially lower the price of coal, oil and natural gas
Our climate mitigation actions continue this week as we are working on activities that can lead to the reduction or phasing down of fossil fuel subsidies. In order to work on them, we have organised the following notes:
A brief explanation of fossil fuel subsidies, the main argument around fossil fuel subsidies, the possible link between the reduction of fossil fuel subsidies and energy poverty reduction, and what climate actions that CENFACS can take with users in relation to fossil fuel subsidies.
• • Notes to the Climate Action 2
• • • A brief explanation of fossil fuel subsidies
Fossil fuel subsidies are simply measures taken by governments around the world to artificially lower the price of fossil fuels (such as coal, oil and natural gas). There are two subsidies, which are: production subsidies and consumption subsidies. There are pros and cons arguments around these subsidies.
• • • The argument around fossil fuel subsidies: Energy substitution effect
Without engaging in an academic discussion about fossil fuel subsidies, let us simply contend that the main argument or disagreement about them is energy substitution effect of fossil fuels (e.g. coal, oil and natural gas) for cleaner and renewable energies (such as wind, wave and solar power) from a change in their relative prices, especially and not exclusively for lower-income households.
To highlight this argument, Jocelyn Timperley (4) argues that
“Fossil fuel subsidies are one of the biggest financial barriers hampering the world’s shift to renewable energy sources”.
Besides this argument, there is also a discussion about the link between the reduction of fossil fuel subsidies and energy poverty reduction.
• • • Possible link between the reduction of fossil fuel subsidies and energy poverty reduction
There could be a relationship between the reduction of fossil fuel subsidies and energy poverty reduction if the money saved through the first reduction is allocated to meet the needs of energy poor people and households. The money from the cut of fossil fuel subsidies can be transferred to energy poor to consume cleaner, greener and sustainable energy.
However, in time of energy crises (like of energy crisis led by the Russia-Ukraine conflict) the link between the reduction of fossil fuel subsidies and energy poverty reduction could be difficult to think of. In the current context of Russia-Ukraine conflict and of weaponization of natural resources (like gas), the world and its developing parts are experiencing rises in global energy prices and food prices.
In these energy conflicting and weaponizing contexts, households, especially the poorest ones, are likely to see their fuel/energy bills going up. So, the prospect for having both the reduction of fossil fuel subsidies and energy poverty reduction could be blurred or difficult. This difficulty does not stop anyone to take actions to deal with or in relation to fossil fuel subsidies.
• • • Climate actions that CENFACS can take with users in relation to the reduction of fossil fuel subsidies
In the definition of fossil fuel subsidies, we argued that fossil fuel subsidies are measures taken by governments. However, other economic agents/players can accompany or support these measures.
We also argued at the beginning of these climate actions that any effort to mitigate the adverse effects of climate change (effort made by reducing greenhouse gas emissions while strengthening capacities and resilience to climate-induced impacts) needs to be smoothly done without exacerbating poverty or leading to a new type of poverty for them. Put it simply, to make helpful difference this effort should lead to poverty reduce as well.
Following these two arguments made, we can add that to be relevant the reduction of fossil fuel subsidies needs to respond to both the needs of reducing greenhouse gas emissions and energy poor’s needs. Where it does not respond, this provides a window of opportunities for CENFACS to work with Africa-based Sister Organisations (ASOs) and with the community in undertaking activities relating to these energy issues.
• • • • Working with and supporting ASOs on matters relating to the reduction of fossil fuels
CENFACS can…
√ Help to develop advocacy strategy conducive to the gaining of access to dividend money from the removal of fossil fuel subsidies
√ Advise ASOs on better use of cash transfers as a result of cut in fossil fuel prices
√ Assist them in offsetting any effects from rising energy prices as a result of income generated from fossil fuel budget cuts
√ Work with them to move towards cleaner, greener and sustainable energy
√ Develop collaborative and cooperative way of working together in the matter of sustainable energy for lower income communities in Africa.
• • • • Working with and supporting the community on matters relating to the reduction of fossil fuels
CENFACS can support the community members…
√ To understand how changes in fossil fuel subsidies can affect their household budgets
√ To be updated about any new and innovative practices in terms of energy use
√ To translate in simple language complex issues of fossil fuel subsidies that can affect their lives
√ To save money on energy bills by sourcing with them affordable energy providers and following energy saving tips and hints
√ With advice and targeted campaign messages to transition towards cleaner, greener and sustainable energy.
For those members of our community who are interested in the reduction of fossil fuel subsidies and or who would like to take climate action with us, they are welcome to contact CENFACS. This welcome message equally applies to ASOs.
For any other queries and enquiries about CENFACS‘ Climate Action Month, the theme of ‘Smooth the Way to Energy Transition’ and the sub-theme of Reduce or Phase down Fossil Fuel Subsidies; please do not hesitate to contact CENFACS.
• Light Season’s New Energy Projects
Last week, we introduced new ways of working with Africa-based Sister Organisations and the community on Plan to Reduce Coal Usage. This week, we are building on these ways by highlighting two new initiatives which fall within the scope of the Light Season. These new ways include:
a) Programme for Gradually Phasing Down Coal
b) Advocacy and E-workshops about Energy Transition.
• • Programme for Gradually Phasing Down Coal
Under this programme, we can together with ASOs plan a certain number of initiatives and activities (e.g. training, workshops, awareness raising, skills formation and development, etc.) to help their locals gradually reduce the use of coal or any polluting source of energy in the process of meeting their basic life-sustaining needs and services and contributing to the net zero CO2 emissions world.
• • Advocacy and E-workshops about Energy Transition
Under energy advocacy and e-workshops about energy transition, we can work with the community on affordable way to embrace or keep pace with energy transition by smoothly moving towards carbon net zero or post-carbon economy, from polluting to cleaner, greener and sustainable energy.
The above mentioned programme, advocacy and e-workshops will be carried out as we move along the year. However, for those who would like to find out more about them, they are welcome to contact CENFACS.
Extra Messages
• Zero Income Deficit Campaign: Tracking Incomings and Outgoings
As part of CENFACS’ Zero Income Deficit Campaign, we are now dealing with techniques and methodology to track incomings and outgoings within household cash flow. Let us explain what this tracking is about.
• • What is tracking incomings and outgoings?
Tracking incomings and outgoings is about collecting monitoring information on your income and expenses accounts. In practical terms, it means recording income and expenses as they chronologically occur, describing income and expenses, explaining source of income while categorising expenses, and writing down the amounts of income and expenses. It is part and task of cash flow management which we are going to undertake with those in need of support.
• • Working with those who need support for the tracking of their incomings and outgoings
Through this tracking process, we can work with those who need support for their cash flow problems on a number tasks like the following:
√ Set up a start date with opening cash balance, forecast future cash inflows and outflows, record both incoming and outgoing cashes while tracking results
√ We can share with user cash flow templates which are available on the market and help them understand how online cash flow trackers work while supporting them to complete them step-by-step
√ We will show them how to track cash flow for six months, one year or more
√ We can assist them to track metrics and key performance indicators to measure and predict their household’s financial health and wealth.
As an example of key performance or predictive indicator, let us take the liquidity ratio. This ratio can help households to know how well or bad they can pay off their outstanding short-term debts.
So, we can help these households to work out their liquidity ratio and understand what it means for household cash flow.
For those members of our community who have problems in tracking their household cash flow incomings and outgoings, and who would like to work on this matter with us, they are free to contact us. Their demand for support does not invalidate any request for support concerning previous activities such as the impact of debt on household budget, budgeting household income and expenses, balance sheet, and reduction of excess of liabilities over assets.
Need to work with us on cash flow tracking activity, please contact CENFACS.
• E-workshop on Climate Mitigation Action and Poverty Reduction
This e-workshop is about identifying types of climate action that reduce both poverty and climate change adversity. After this identification, participants can state how strong or moderate or weak the given climate action can have on net zero CO2 emissions reduction and poverty reduction.
In this exercise, we could have the following matrix of 9 x 2 possibilities:
Strong impact for climate – Strong impact for poverty reduction
Strong impact for climate – Moderate impact for poverty reduction
Strong impact for climate – Weak impact for poverty reduction
Moderate impact for climate – Strong impact for poverty reduction
Moderate impact for climate – Moderate impact for poverty reduction
Moderate impact for climate – Weak impact for poverty reduction
Weak impact for climate – Strong impact for poverty reduction
Weak impact for climate – Moderate impact for poverty reduction
Weak impact for climate – Weak impact for poverty reduction
To participate or find out more about the e-workshop, please contact CENFACS.
• Be.Africa Forum Discusses the Impact of Russia-Ukraine Conflict on Poverty Reduction and Sustainable Development in Africa
The armed conflict between Russia and Ukraine may have some far-reaching ramifications in terms of efforts to tackle poverty and enhance sustainable development in Africa. So far, this conflict has resulted in soaring prices of cereal, dairy and food products. The prices of sunflower oil and wheat have dramatically gone up.
The conflict has also led to the jump in the prices of fossil fuels like oil and gas. Using the data from Refinitiv, Alexandra White (5) argues that
“The Brent crude oil, the international benchmark, jumped almost 8 per cent to 132.51 a barrel [on Tuesday 08/03/2022]”
There has been also a surge in gas prices in Europe where many countries depend on Russian gas. According to the online website ‘bloomberg.com’ (6),
“Since 01 January 2022, the percentage change of gas prices has been 144% for the European Union, 142% for the United Kingdom and 37.3% for the United States of America [as of 08 March 2022]”
Bearing in mind that Russia is the world’s third top producer of crude oil after Saudi Arabi and the United States of America, and together Russia and Ukraine hold 30% of global production of wheat and 80% of sunflower oil; this conflict or crisis has started to have rippling effects beyond the European borders to reach Africa.
These skyrocketing energy and food prices may have contributed to the rise in the price of foodstuffs and transport costs in Africa where lives and livelihoods depend on the above mentioned products and services. This is let alone indirect price increases for other essential products and services linked to the above mentioned ones. These rises could also have knock-on effects on any efforts to reduce poverty and enhance sustainable development in Africa.
Because of these presumed multiplier effects of the Russia-Ukraine conflict on the African economies, CENFACS’ Be.Africa Forum would like to hear from you about how this conflict is impacting or will impact efforts to reduce poverty and enhance sustainable development in Africa.
You can tell the forum what you think about the repercussions of this conflict on poverty reduction and sustainable development in Africa. To tell what you think or know, please contact CENFACS on this site. Thank you!
Action 2 pour le climat à tenir du 09 au 15/03/2022:
Baisser ou réduire progressivement les subventions qui abaissent artificiellement le prix du charbon, du pétrole et du gaz naturel
Les actions d’atténuation du changement climatique se poursuivent cette semaine. A ce titre, nous travaillons sur des activités qui peuvent conduire à la baisse ou à la réduction progressive des subventions.
Pour y arriver, nous allons travailler soit avec des organisations sœurs basées en Afrique soit avec les membres de notre communauté, soit les deux. Nous le faisons en tenant compte que l’action climatique concerne d’abord les efforts visant à atténuer les effets du changement climatique négatif plutôt qu’à réduire la pauvreté.
1) Le travail avec les organisations sœurs basées en Afrique
Le travail avec les organisations sœurs basées en Afrique consistera à les soutenir sur le plan de réduction des subventions aux combustibles fossiles.
Dans ce cadre, le CENFACS peut…
√ Aider à développer une stratégie de plaidoyer propice à l’accès à l’argent des dividendes grâce à la suppression des subventions aux combustibles fossiles
√ Conseiller ces organisations sur une meilleure utilisation des transferts monétaires à la suite de la réduction des prix du carburant
√ Les aider à compenser les effets de la hausse des prix de l’énergie résultant des revenus générés par les coupes budgétaires dans les combustibles fossiles
√ Travailler avec eux pour évoluer vers une énergie plus propre, plus verte et durable
√ Développer une manière collaborative et coopérative de travailler ensemble en matière d’énergie durable pour les communautés à faible revenu en Afrique
√ Travailler indirectement avec les communautés africaines par le biais de leurs organisations représentatitves et les soutenir sur la réduction des subventions aux combustibles fossiles.
2) Le travail avec les membres de notre communauté
Le CENFACS peut soutenir les membres de sa communauté de manière suivante:
√ Comprendre comment les changements dans les subventions aux combustibles fossiles peuvent affecter le budget de leurs ménages
√ Être mis à jour sur toute pratique nouvelle et innovante en matière de consommation d’énergie
√ Traduire en langage simple et claire les questions complexes des subventions aux combustibles fossiles qui peuvent affecter leur vie
√ Economiser de l’argent sur les factures d’énergie en leur procurant des fournisseurs d’énergie à des prix abordables et en suivant les conseils et astuces d’économie d’énergie
√ Avec des conseils et des messages de campagne ciblés pour la transition vers une énergie plus propre, plus verte et durable.
Pour les membres de notre communauté qui sont intéressés par la réduction des subventions aux combustibles fossiles et qui souhaitent prendre des mesures climatiques avec nous, ils sont invités à contacter le CENFACS. Ce message de bienvenue s’applique également aux organisations sœurs basées en Afrique.
Pour toute autre question et demande de renseignements sur le Mois de l’action pour le climat du CENFACS, le thème « Faciliter la transition énergétique » et le sous-thème « baisser ou réduire progressivement les subventions »; n’hésitez pas à contacter le CENFACS.
Main Development
• Urban Poverty Reduction Project
The following are the key highlights of the Urban Poverty Reduction Project.
• • What is Urban Poverty Reduction Project?
It is a poverty-reduction initiative of inclusivity, safety, resilience and sustainability that aims at reducing the economic and social difficulties or hardships experienced by urban poor (who could be city-dwellers and small scale urban farmers) living in Africa’s cities so that they can improve the quality of their living conditions. As stated, the project will help them to be included, feel safe and stay resilient against environmental, economic and social threats and risks.
• • What are the expectations about this project?
Through this project, there are expectations to increase and widen the opportunities and possibilities of meeting social, economic and environmental needs.
∝ Social needs are psychological and emotional needs as the theory of hierarchy of needs of Abraham Maslow (7) tells us. These social needs will include affection, belonging, acceptance and safety. The satisfaction of these needs can help to reduce poverty linked to loneliness, anxiety, etc.
∝ Economic needs are the minimum what is required for any human being to survive economically in terms of education, health, money, housing, transport, assets, land, etc. Economic needs can be met by income generation activities, job creation, having a bank/saving account (digital or non digital), etc.
∝ Environmental needs will be the minimum what is necessary for human beings to survive external factors, conditions and influences that affect their life, development and survival. Meeting environmental needs could be providing net-zero-CO2-emissions consumer goods and services; ensuring good quality of air; sustainably managing waste, etc.
• • Project objectives
Through this project, CENFACS wishes the following to happen:
√ Work with urban poor build resilience and sustainable living
√ Lower multiple deprivations experienced by urban poor
√ Reduce overcrowding
√ Improve the quality of air they breathe
√ Better manage waste
√ Cut informal settlements
√ Reduce informal settlers and squatters from urban poor
√ Improve the means to access safe and sustainable transport
√ Reduce the use of polluting energy
√ Transition to clean and renewable energy
√ Build coping, adaptive and transformative capacity against urban natural events (e.g. flooding) and environmental health exposures.
• • Project activities
The project is about working with urban poor and or their representative organisation to help them navigate the barriers and challenges of urban city so that they can find their way out via these specific actions:
√ Information, guidance and support to urban poor about the functioning and distribution of city-wide services
√ In-person and digital support to access urban services
√ Learning and training about citizenship rights
√ Advocacy on urban and human rights
√ Advice and tips on urban poverty reduction
√ Training and workshops on urban life
√ Urban skills development
Etc.
• • Project outcomes
CENFACS hopes that by working with urban people who live below an acceptable level of income in the city and who have no access or limited access to some social means, they will be able to achieve the following changes:
√ Less unemployed and casually employed amongst other urban people
√ Reduction of the number of urban poor where the project will be implemented
√ Improvement in security to land tenure/tenancy and secure living conditions
√ Better access to good sanitation, safe drinking water and healthcare
√ Curbing of the impacts of risky environmental health
√ Lowering of the lingering socio-economic effects of COVID-19 and the Russia-Ukraine conflict
√ Adequate access to city-wide services (e.g. water supply, sanitation, health, etc.) for poor city-residents
√ Regaining of structure and functionality by urban poor from climate events
Etc.
• • Project beneficiaries
Generally, the beneficiaries of this project will be lower-income urban poor people and households.
Specifically, the project will benefit the following:
urban unemployed and casually employed, disproportionally affected by insecurity of land tenure and insecure living conditions, squeezed off valuable land and are forced into peripheral or marginal locations, exposed to severe environmental health risks, those urban poor experiencing poor living conditions, those living in informal settlements, etc.
• • Project indicators
The measures below will help find out whether or not the project will reach its desired objectives and progress towards meeting its defined aims:
∝ Income earned or received has improved (and whether or not urban poor will manage to reduce their overreliance on cash economy)
∝ Basic basket of goods as a consumption indicator to measure the affordability of urban poor households for these goods, as well as to assess improvement in accessing basic urban services such as water, sewage, health, education, internet, and safety net to mitigate urban poverty
∝ Deficiency indicator which enables to check if urban poor are literate, numerate and their children are able to attend school; they can afford daily caloric and protein requirements; they live in habitable housing
∝ Vulnerability indicator which will indicates the level of economic, social and environmental protection they get.
• • Project funding status
So far, this project is unfunded. This means we are open to any credible funding proposals or proposition from potential funders or donors. It is known that the lingering impacts of the coronavirus pandemic have put a toll on everybody. Likewise, the Russia-Ukraine crisis does not make easy for support to other genuine deserving causes. However, those who would like to support this project will be more than welcome.
To fully or partly fund this project, please contact CENFACS.
• • Impact monitoring and evaluation
As part of impact monitoring, there will be routine and systematic gathering of information on all aspects of the project. In other words, we will systematically collect and analyse information to keep regular checks and balances on the project.
Likewise, we shall assess what the project will achieve in relation to the overall objectives it was set up. This is to say that evaluation will be conducted regarding the efforts spent on this project to find out whether or not these efforts are value for relief as far as urban poverty reduction is concerned.
In proceeding in this manner, we will be able to measure the impact or at least the outcomes from this project.
The full project proposals including budget are available on request. It is known that COVID-19 restrictions have been lifted. Let us repeat thhe following.
COVID-19 lingering effects are still felt. Just as the Russia-Ukraine conflict may affect funding towards other noble causes like urban poor. However, for those who may be interested in this project, they should not hesitate to contact CENFACS.
To support or contribute to this project, please contact CENFACS.
For further details including full project proposals and budget about the Urban Poverty Reduction Project, please contact CENFACS.
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• References
(1) cenfacs.org.uk/2022/01/19/The Dilemma-faced-by-Africa-based-sister-organisations/(accessed in March 2022)
(2) Cano Hila, Ana Belén (2020): Urban Poverty – Urban Studies – Oxford Bibliographies at…
https://www.oxfordbibliographies.com/view/document/obo-9780190922481/… (accessed in March 2022)
Cano, Ana Belén. “Urban Poverty.” In The Wiley Blackwell Encyclopedia of Urban and Regional Studies. Edited by A. M. Orum, 1–7. Hoboken, NJ: Wiley-Blackwell, 2019.
(3) https://sdgs.un.org (accessed in March 2022)
(4) Timperley, J. at https://www.nature.com/articles/d41586-021-02847-2 (accessed in March 2022)
(5) White, A. (2022), Oil prices surge ahead of US announcement on Russian oil ban at https://www.ft.com/content/a29d2d7d-fb07-4976-bc/76-45100df-07bb#post-8616d6ce-b8fc-43c5-87f0308b6409 (accessed in March 2022)
(6) https://www.bloomberg.com/news/articles/2022-03-08 (accessed in March 2022)
(7) Maslow, A. (1943), “A Theory of Human Motivation”, Psycolological Review, 50,370-396 (accessed in March 2022)
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Thank you for visiting CENFACS website and reading this post.
Thank you as well to those who made or make comments about our weekly posts.
We look forward to receiving your regular visits and continuing support throughout 2022 and beyond.
With many thanks.
