You are here : English VersionNews

The determinants of electricity constraints by firms in developing countries

Published on December 1, 2021 – Updated on November 29, 2021

Focus on research

The determinants of electricity constraints by firms in developing countries


According to the World Bank Enterprises Survey data (WBES), electricity is one of the top constraints to business operations in developing countries. Data from 108 developing countries between 2006 and 2017 show that about 13.6 percent of firms report electricity as the top constraint they face in their activities. This makes electricity the second most important constraint, the first being access to finance (15.2% of firms surveyed). Particularly, in Sub-Saharan Africa (24.53%) and South Asia (23.54%), access to electricity is the first constraint to business development, ahead of political instability and access to finance.

Read in French