IMPACT OF RURAL AND URBAN ELECTRICITY ACCESS ON ECONOMIC GROWTH IN ZIMBABWE

Simbarashe Mhaka,Nyasha Kaseke,Syden Mishi,Raynold Runganga,David T Nyagweta

doi:10.32479/ijeep.10141

Abstract

Lack of access to reliable electricity to both rural and urban Zimbabweans is negatively affecting the quality of people's life. The country has been experiencing extended hours of load shedding which result in the population having more hours without electricity per day than with electricity. Access to electricity complimented by droughts, natural disasters has impacted on production activities for the people hence causing poverty to many. The study used time series data for the period 1992-2018. The Dynamic Ordinary Least Squares (DOLS) was used as the main model of assess electricity access on economic growth. The results reveals that electricity access to urban population and electricity access to population (EAP) have positive significant impact on economic growth. However, electricity access to rural population was found to be statistically insignificant reflecting that electricity is not always available when it is needed in the rural areas. The study recommends that there is need to improve electricity access for both urban and rural population through on-grid and off-grid systems and expanded electricity generation to meet demand. This will improve socio-economic activities people would be able to carry out productive activities such as irrigation, processing and manufacturing or value addition of certain agriculture out.Keywords: Urban electricity access, rural electricity access, Economic Growth.JEL Classifications: C32, R11, E24DOI: https://doi.org/10.32479/ijeep.10141

Highlights

Reliable electricity access is considered critical on people’s opportunities and quality of life
The results shows that electricity access to urban population and electricity access to population have significant impact on economic growth
Electricity access to population (EAP) was found to have a positive and statistically significant coefficient at 5% level, meaning that a 1% increase in total population with access to electricity result in approximately 4.7% increase in economic growth, holding other things constant

Summary

INTRODUCTION

Reliable electricity access is considered critical on people’s opportunities and quality of life. Et al.: Impact of Rural and Urban Electricity Access on Economic Growth in Zimbabwe shedding is affecting all sectors of the economy and causing poverty to the Zimbabwean populace. Access to electricity has been improving in both rural and urban parts of the country, the problem are of power outages and rising costs of electricity in Zimbabwe This has left many people trying to substitute electricity with some non-renewable energy sources. Improving energy access to the people living in both urban areas and rural areas of Zimbabwe can stimulate the economy indirectly because access to electricity induces the electricity consumption. The access to electricity in the urban areas during this period was great, but the economy was not performing well, which brings us to the question of whether electricity access does increase growth in Zimbabwe. We disaggregated the impact of access to electricity by people living in urban areas and by people living in rural areas

LITERATURE REVIEW

DATA SOURCES AND METHODOLOGY

ECONOMETRIC RESULTS

CONCLUSION AND POLICY IMPLICATIONS