Electricity Consumption And Economic Development Are Closely Linked

From Mckinsey & Company, Insights & Publications, "Powering Africa: There is a direct correlation between economic growth and electricity supply. If sub-Saharan Africa is to fulfill its promise, it needs power—and lots of it." by byAntonio Castellano, Adam Kendall, Mikhail Nikomarov, and Tarryn Swemmer:

Countries with electrification rates of less than 80 percent of the population consistently suffer from reduced GDP per capita (Exhibit 1). The only countries that have electrification rates of less than 80 percent with GDP per capita greater than $3,500 are those with significant wealth in natural resources, such as Angola, Botswana, and Gabon. But even they fall well short of economic prosperity. Whether people can obtain electricity (access), and if so, how much they are able to consume (consumption) are the two most important metrics that can indicate the degree to which the power sector is supporting national development.

Exhibit 1

Electricity consumption and economic development are closely linked; growth will not happen without a step change in the power sector.

Source: McKinsey & Company