Rising Power Outages Are Hurting This Country’s Economy

24/7 Wall St. Insights

• In more than 80 countries, more than half of all businesses report experiencing regular power outages.
• In several countries, the typical business experiences more than one outage per day in a typical month.
• In countries with the least reliable grids, the value lost due to electric outages amounts to more than 10% of sales.
• Many of the countries experiencing the most revenue loss are in Africa, but there are small nations all over the world struggling with business-disrupting outage activity.
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A functioning, reliable power grid is the backbone of a modern economy. When power fails, productivity drops, and economic growth slows. In many parts of the developing world, increasing power outage activity – compounded by climate change and rising demand from a growing population – is becoming a serious damper on economic flourishing.

In some countries, the value lost due to electric outages amounts to more than 10% of sales. More than half of all businesses experience regular power outages in over 80 countries, some experiencing more than one power outage a day in a typical month. Many of the countries experiencing the most revenue loss due to power outages are in Africa, but small, struggling nations all over the world report serious business-disrupting outage activity. A closer look at the data reveals where power outages are hurting economic activity the most.

To determine where power outages are hurting economic growth the most, 24/7 Wall St. reviewed data on power outages and economic activity from the World Bank. Countries were ranked based on the average losses due to electrical outages as a percentage of total annual sales. Data is collected using firm-level surveys implemented by the Enterprise Analysis United of the World Bank. Surveys are randomized, and mostly cover small- and medium-sized firms. Supplemental data on the percentage of firms that report electrical outages, the number of outages experienced by the typical firm in a month, and GNI per capita are also from the World Bank. All data is for the most recent period available.

40. Fiji

• Value lost due to electrical outages: 4.9% of sales for affected firms
• Firms reporting electrical outages: 81.8% of businesses
• Typical firm outage rate: 1.4 outages per month
• Gross national product: $14,280 per capita

39. Cote d’Ivoire

• Value lost due to electrical outages: 4.9% of sales for affected firms
• Firms reporting electrical outages: 78.8% of businesses
• Typical firm outage rate: 3.5 outages per month
• Gross national product: $6,910 per capita

38. Guinea-Bissau

• Value lost due to electrical outages: 5.2% of sales for affected firms
• Firms reporting electrical outages: 57.1% of businesses
• Typical firm outage rate: 5.2 outages per month
• Gross national product: $2,860 per capita

37. Kenya

• Value lost due to electrical outages: 5.4% of sales for affected firms
• Firms reporting electrical outages: 82.8% of businesses
• Typical firm outage rate: 3.8 outages per month
• Gross national product: $6,200 per capita

36. South Africa

• Value lost due to electrical outages: 5.5% of sales for affected firms
• Firms reporting electrical outages: 92.0% of businesses
• Typical firm outage rate: 7.7 outages per month
• Gross national product: $14,990 per capita

35. Cabo Verde

• Value lost due to electrical outages: 5.5% of sales for affected firms
• Firms reporting electrical outages: 74.0% of businesses
• Typical firm outage rate: 3.2 outages per month
• Gross national product: $10,190 per capita

34. Niger

• Value lost due to electrical outages: 5.5% of sales for affected firms
• Firms reporting electrical outages: 78.0% of businesses
• Typical firm outage rate: 22.0 outages per month
• Gross national product: $1,820 per capita

33. Burkina Faso

• Value lost due to electrical outages: 5.8% of sales for affected firms
• Firms reporting electrical outages: 91.9% of businesses
• Typical firm outage rate: 9.8 outages per month
• Gross national product: $2,640 per capita

32. Liberia

• Value lost due to electrical outages: 6.1% of sales for affected firms
• Firms reporting electrical outages: 44.3% of businesses
• Typical firm outage rate: 4.5 outages per month
• Gross national product: $1,680 per capita

31. Zimbabwe

• Value lost due to electrical outages: 6.1% of sales for affected firms
• Firms reporting electrical outages: 76.5% of businesses
• Typical firm outage rate: 4.5 outages per month
• Gross national product: $3,770 per capita

30. Samoa

• Value lost due to electrical outages: 6.6% of sales for affected firms
• Firms reporting electrical outages: 86.4% of businesses
• Typical firm outage rate: 4.6 outages per month
• Gross national product: $6,890 per capita

29. Ethiopia

• Value lost due to electrical outages: 6.9% of sales for affected firms
• Firms reporting electrical outages: 80.0% of businesses
• Typical firm outage rate: 8.2 outages per month
• Gross national product: $3,050 per capita

28. Eswatini

• Value lost due to electrical outages: 7.0% of sales for affected firms
• Firms reporting electrical outages: 77.3% of businesses
• Typical firm outage rate: 3.7 outages per month
• Gross national product: $10,460 per capita

27. Malawi

• Value lost due to electrical outages: 7.2% of sales for affected firms
• Firms reporting electrical outages: 82.9% of businesses
• Typical firm outage rate: 6.7 outages per month
• Gross national product: $1,780 per capita

26. Pakistan

• Value lost due to electrical outages: 7.4% of sales for affected firms
• Firms reporting electrical outages: 50.7% of businesses
• Typical firm outage rate: 22.0 outages per month
• Gross national product: $5,930 per capita

25. Democratic Republic of the Congo

• Value lost due to electrical outages: 7.8% of sales for affected firms
• Firms reporting electrical outages: 89.3% of businesses
• Typical firm outage rate: 12.3 outages per month
• Gross national product: $1,560 per capita

24. Morocco

• Value lost due to electrical outages: 7.9% of sales for affected firms
• Firms reporting electrical outages: 20.9% of businesses
• Typical firm outage rate: 0.3 outages per month
• Gross national product: $9,700 per capita

23. Venezuela

• Value lost due to electrical outages: 8.3% of sales for affected firms
• Firms reporting electrical outages: 64.6% of businesses
• Typical firm outage rate: 2.6 outages per month
• Gross national product: $16,910 per capita

22. Timor-Leste

• Value lost due to electrical outages: 8.5% of sales for affected firms
• Firms reporting electrical outages: 33.5% of businesses
• Typical firm outage rate: 1.4 outages per month
• Gross national product: $5,620 per capita

21. Mali

• Value lost due to electrical outages: 8.8% of sales for affected firms
• Firms reporting electrical outages: 86.6% of businesses
• Typical firm outage rate: 4.2 outages per month
• Gross national product: $2,530 per capita

20. Iraq

• Value lost due to electrical outages: 9.0% of sales for affected firms
• Firms reporting electrical outages: 41.3% of businesses
• Typical firm outage rate: 12.3 outages per month
• Gross national product: $14,160 per capita

19. Bangladesh

• Value lost due to electrical outages: 9.3% of sales for affected firms
• Firms reporting electrical outages: 71.4% of businesses
• Typical firm outage rate: 26.2 outages per month
• Gross national product: $9,510 per capita

18. Benin

• Value lost due to electrical outages: 9.4% of sales for affected firms
• Firms reporting electrical outages: 95.6% of businesses
• Typical firm outage rate: 28.0 outages per month
• Gross national product: $4,090 per capita

17. Afghanistan

• Value lost due to electrical outages: 9.6% of sales for affected firms
• Firms reporting electrical outages: 70.4% of businesses
• Typical firm outage rate: 11.5 outages per month
• Gross national product: $2,220 per capita

16. Chad

• Value lost due to electrical outages: 9.8% of sales for affected firms
• Firms reporting electrical outages: 70.2% of businesses
• Typical firm outage rate: 4.5 outages per month
• Gross national product: $1,840 per capita

15. Cameroon

• Value lost due to electrical outages: 9.9% of sales for affected firms
• Firms reporting electrical outages: 92.5% of businesses
• Typical firm outage rate: 7.6 outages per month
• Gross national product: $5,300 per capita

14. Uganda

• Value lost due to electrical outages: 11.2% of sales for affected firms
• Firms reporting electrical outages: 81.5% of businesses
• Typical firm outage rate: 6.3 outages per month
• Gross national product: $3,040 per capita

13. Angola

• Value lost due to electrical outages: 12.6% of sales for affected firms
• Firms reporting electrical outages: 87.7% of businesses
• Typical firm outage rate: 4.7 outages per month
• Gross national product: $7,280 per capita

12. South Sudan

• Value lost due to electrical outages: 13.6% of sales for affected firms
• Firms reporting electrical outages: 15.3% of businesses
• Typical firm outage rate: 1.5 outages per month
• Gross national product: $1,010 per capita

11. Central African Republic

• Value lost due to electrical outages: 13.8% of sales for affected firms
• Firms reporting electrical outages: 89.3% of businesses
• Typical firm outage rate: 28.3 outages per month
• Gross national product: $1,330 per capita

10. The Gambia

• Value lost due to electrical outages: 14.2% of sales for affected firms
• Firms reporting electrical outages: 93.2% of businesses
• Typical firm outage rate: 21.1 outages per month
• Gross national product: $3,210 per capita

9. Tanzania

• Value lost due to electrical outages: 15.1% of sales for affected firms
• Firms reporting electrical outages: 85.8% of businesses
• Typical firm outage rate: 8.9 outages per month
• Gross national product: $3,940 per capita

8. Nigeria

• Value lost due to electrical outages: 15.6% of sales for affected firms
• Firms reporting electrical outages: 77.6% of businesses
• Typical firm outage rate: 32.8 outages per month
• Gross national product: $6,020 per capita

7. Ghana

• Value lost due to electrical outages: 15.8% of sales for affected firms
• Firms reporting electrical outages: 89.1% of businesses
• Typical firm outage rate: 8.4 outages per month
• Gross national product: $7,450 per capita

6. Sierra Leone

• Value lost due to electrical outages: 16.1% of sales for affected firms
• Firms reporting electrical outages: 66.2% of businesses
• Typical firm outage rate: 4.0 outages per month
• Gross national product: $3,340 per capita

5. Republic of the Congo

• Value lost due to electrical outages: 16.4% of sales for affected firms
• Firms reporting electrical outages: 89.7% of businesses
• Typical firm outage rate: 21.5 outages per month
• Gross national product: $6,500 per capita

4. Nepal

• Value lost due to electrical outages: 17.0% of sales for affected firms
• Firms reporting electrical outages: 62.8% of businesses
• Typical firm outage rate: 8.7 outages per month
• Gross national product: $5,460 per capita

3. Zambia

• Value lost due to electrical outages: 18.8% of sales for affected firms
• Firms reporting electrical outages: 87.1% of businesses
• Typical firm outage rate: 13.3 outages per month
• Gross national product: $3,880 per capita

2. Yemen

• Value lost due to electrical outages: 19.7% of sales for affected firms
• Firms reporting electrical outages: 93.8% of businesses
• Typical firm outage rate: 38.8 outages per month
• Gross national product: $3,020 per capita

1. Madagascar

• Value lost due to electrical outages: 24.0% of sales for affected firms
• Firms reporting electrical outages: 52.4% of businesses
• Typical firm outage rate: 6.3 outages per month
• Gross national product: $1,780 per capita

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