Electricity access and unreliability in the creation of sustainable livelihoods in Mozambique

Abstract

Although Mozambique has abundant energy resources and strives to increase access to electricity as a strategy to fight poverty and to pursue the Sustainable Development Goals, the country faces a double challenge, the lack of access or affordability of electric services and their unreliability. This work assesses the level of electricity reliability in the country, surveys the perception of electricity unreliability by micro, small and medium enterprises in the provincial capitals of the central and northern regions of the country, and estimates the impact of electricity reliability and electricity expenses in the generation of sustainable livelihoods in the country. Using data from 2014 to 2018, it is shown that the studied areas experienced frequent and prolonged electricity outages, especially during working hours. Modelling of empirical results through the nonparametric Wild Bootrap estimation method shows that electricity unreliability and electricity expenses contribute negatively to the generation of sustainable livelihoods. Electricity projects that expand productive capacity in sectors employing most of the country´s active population can contribute to the generation of sustainable livelihoods. Long-run policies might build resilient infrastructures and activate structural changes in the country's production system towards increased production, job creation, and generation of sustainable livelihoods.