Remittances Inflows and Electricity Access in Sub-Saharan Africa: Insights from a Process-Tracing Approach

Pius Gamette (), Nicholas Odhiambo () and Simplice Asongu
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Pius Gamette: Pretoria, South Africa
Nicholas Odhiambo: Pretoria, South Africa

No 26/047, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study presents an exploratory analysis of trends, underpinning mechanisms and policy implications linking remittances inflows to electricity access in sub-Saharan Africa (SSA) over the period 1990 - 2022. Using data from the World Development Indicators (WDI) and other sources, a process tracking method is used to examine the trends and underlying mechanisms between the inflow of remittances and access to electricity in SSA from 1990 to 2022. The findings show that remittance inflows and access to electricity in SSA are not only co-movement, but rather a mechanism-driven and exhibits uneven structural dynamics. Remittances influence household energy decisions through income, investment and liquidity channels; nevertheless, their efficacy is contingent upon the quality of infrastructure and regional inequities. Benefits are still unequal even though access to electricity increased from 28.4% to 50.6% (1996–2021) and remittances increased to roughly 2.7% of GDP. Remittance effects are amplified by stronger urban infrastructure, but electrification is hampered by rural deficiencies, which perpetuate inequality. This study complements the extant literature on remittances as a pertinent driver for universal electricity access and employs the process-tracing approach to uncover the dynamic relationship between remittances inflows and electricity adoption in SSA countries.

Keywords: Remittances; Electricity; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: F22 F24 Q48 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2026-01
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http://publications.excas.org/RePEc/exs/exs-wpaper ... Tracing-Approach.pdf Revised version, 2026 (application/pdf)

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Working Paper: Remittances Inflows and Electricity Access in Sub-Saharan Africa: Insights from a Process-Tracing Approach (2026)
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