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Abstract

Purpose: 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.

Design/methodology/approach: 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.

Findings: 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.

Originality/value: 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.