Abstract
This study sought to examine the impact of water disruptions on productivity in African manufacturing firms, using cross-sectional data from the World Bank enterprise surveys. We measured water infrastructure quality or water disruptions using the number of hours per day without water and found this indicator to be a negative and significant determinant of productivity. At country level, this variable seems to be a significant determinant in Uganda and Zambia, whilst firms in the food and agriculture, chemical and pharmacy as well as construction and metals sectors are also similarly affected.To improve economic growth through firm productivity and hence encourage employment creation and better standards of living, governments in Africa need to come up with measures to strengthen the effectiveness of both technical and institutional water infrastructure services.
Highlights
According to the World Business Council for Sustainable Development (WBCSD) report (2005), water is not distributed evenly over the globe and fewer than 10 countries possess 60% of the world’s available freshwater supply (Brazil, Russia, China, Canada, Indonesia, U.S, India, Columbia and the Democratic Republic of Congo)
We argue that the contributions of water infrastructure to productivity derive not from the mere existence or creation of the physical facilities like water treatment plants and water reservoirs, but from their operation and the value of the services generated
The primary objective of this study was to examine the role played by the quality of water infrastructure on firm productivity in the manufacturing sector in Africa
Summary
According to the World Business Council for Sustainable Development (WBCSD) report (2005), water is not distributed evenly over the globe and fewer than 10 countries possess 60% of the world’s available freshwater supply (Brazil, Russia, China, Canada, Indonesia, U.S, India, Columbia and the Democratic Republic of Congo). Adequate and sustainable provision of industrial water is important for Africa to increase productivity and supply of goods as well as promote economic development. The problem in Africa is mostly not about availability of water (there are abundant freshwater resources), but about accessibility (Tadese, 2009). This is a result of inadequate assessment, underdevelopment of water resources, lack of technical and institutional infrastructure as well as use of inappropriate water management systems (Tadese, 2009). Development policy experts have argued that poor provision of water will affect economic development, but will constrain the continent’s ability to meet its Millennium Development Goals (MDGs)
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