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

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.