The Effect of Electrification on Economic Growth in Developing Countries: A Cross-Country Analysis of Africa

While a link between electrification and economic growth is widely acknowledged, empirical evidence from developing regions remains limited.This study addresses this gap by examining the statistical association between electrification and selected economic indicators across 30 African countries between 2010 and 2020.Countries were stratified by World Bank income classification, and data on electrification rates, GDP per capita, poverty headcount ratios, and the Multidimensional Poverty Index (MPI) were obtained from the World Bank and UNDP.Pearson correlation and linear regression techniques were applied.The results show that the strength of the association between electrification and economic performance varies by income group.In low-income countries, electrification rates are moderately associated with GDP per capita (r = 0.49).Regression estimates indicate that higher electrification levels are associated with higher GDP per capita.However, the model explains a limited share of the observed variation (R² = 0.24, p = 0.03), suggesting that other structural factors play an important role.In lower-middle-income countries, the association is stronger (r = 0.73), with electrification exhibiting a robust positive relationship with GDP per capita (R² = 0.65, p = 0.01).Electrification is also associated with lower-income poverty in this group.An inverse relationship with MPI is observed in lower-middle-income countries, but it is not statistically significant despite a high model fit (R² = 0.82).Overall, the findings suggest that electrification is more strongly associated with economic performance in lower-middle-income African countries than in low-income countries.In the latter, institutional and structural constraints may dampen the observable economic association, highlighting the importance of complementary development interventions and context-specific energy policies.