Improving the Performance of Electricity and Water and Sanitation Utilities in Sub-Saharan Africa

Two trends are shaping the future of economic growth in Sub-Saharan Africa. Rural to urban migration is expected to rise steeply. The urban population still comprises only 37 percent of the total population, despite tripling since 1990. And while poverty reduction efforts have been effective in decreasing the proportion of people living on less than $1.90 per day, the number of poor people in Sub-Saharan African continues to grow alongside population increases. The growth potential of cities across SubSaharan Africa thus hinges on better progress toward reducing poverty in the face of rapid urbanization. One effective antidote to poverty is more and better infrastructure, yet Africa’s infrastructure networks lag increasingly behind those of other developing countries in providing telecom, electricity, and water supply and sanitation services. Those people and industries that do have services pay twice as much as those outside Africa and receive fairly low quality service, further reducing regional competitiveness and growth. As cities continue to flood with migrants looking for better economic opportunities, power and water utilities are being challenged to improve the services offered to existing and new users. For power utilities, the added challenge is that they often have a responsibility to provide services nationally to urban and rural consumers. To have modern access to water1 and electricity entails an affordable connection to the service, and continuous and affordable supply of sufficient quantity and quality. Utilities need to perform their operational and financial functions efficiently enough to provide such services.