The Department of Provincial and Local Government (dplg) lists many socio-economic benefits obtainable from introducing an Alternative Energy Source into indigent communities. A variety of job development opportunities for women and community empowerment, job creation and poverty alleviation, are initiated through introducing a new industry that requires distribution and retail outlets. Compared to existing fuels distributed to poor communities, where the price is unregulated due to many commercial service providers, introducing Red Cap as a FBAE offers an opportunity to create a linear distribution network, with a regulated price, through a single provider. This guarantees affordable pricing both to the municipalities and to the poor themselves. Rural areas will need to establish supply chains for the Alternative Energy Source and its appliances, which can create jobs in rural areas. The DME comments that if well managed there are opportunities for the establishment of Integrated Energy Centres, SMMEs and BEEs in facilitating access to Alternative Energy Sources (which assists with) the poverty reduction goal of Government. In addition to providing empowerment and development opportunities, these poor communities will be uplifted through being able to cook, heat and have light from Red Cap, a safe and healthy energy source.
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