Street scene in South Africa showing local vendors and infrastructure amid tariff discussions.
A new study by the Clean Air Task Force (CATF) reveals that unreliable electricity supply is inflating business costs in sub-Saharan Africa by as much as 44%. Despite electricity access doubling in the past 20 years, 78% of firms still face frequent outages—the highest rate worldwide. To cope, many companies rely heavily on generators, voltage stabilizers, and alternative energy, with backup power accounting for nearly three-quarters of extra costs. In Benin alone, firms endure 28 outages per month, losing about 8% of annual sales. CATF warns that the true economic cost of unreliable electricity is underestimated and urges governments to invest in modernizing grids, improving reliability, and supporting vulnerable businesses in the informal sector.
Forbes