Power Access Gaps Hindered Growth in Sub-Saharan Africa
Business operators in the region face persistent infrastructure hurdles that complicate food production and logistics.
Updated on Sept. 19, 2026 in Economic Indicators
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While Sub-Saharan Africa achieved 4.5 percent economic growth in 2025, over 560 million people in the region still lack access to electricity. The reliance on backup power remains a necessity for enterprises as only 53 percent of the region has reliable grid connectivity.
Why it matters
Unreliable power chains increase operational costs for businesses that must run diesel generators to secure critical functions like refrigeration and food processing. These energy gaps also leave the region vulnerable to food insecurity when international commodity prices spike.
Although the regional growth rate hit 4.5 percent in 2025, with ten economies exceeding 6 percent growth, only 53 percent of the population has electricity access. Ikeja Electric demonstrated that grid digitization can reduce system downtime by 33 percent.
The players
Schneider Electric
A global specialist in energy management and industrial automation that develops infrastructure for electrical grid reliability.
Ikeja Electric
A power distribution company operating in Lagos that has implemented digital network automation to improve grid uptime.
The details
Businesses continue to mitigate grid instability by operating private diesel generators to maintain irrigation, milling, and cold storage capabilities. Infrastructure modernization, such as the digitization projects seen at Lagos-based Ikeja Electric, represents a critical shift toward reducing system-wide downtime. These investments are essential to protect the supply chain, as current data suggests a 20 percent jump in food prices could impact 20 million residents.
Timeline
The regional economy recorded a 4.5 percent growth rate throughout 2025.
Market Landscape
This report follows the 2025 IMF regional economic growth estimates by identifying infrastructure as the primary bottleneck for sustained development. It highlights how grid stability has become a competitive differentiator for firms navigating a region where nearly half the population lacks power.
Operators in power-constrained markets should factor persistent diesel costs into their 2026 expense models to hedge against grid instability. Managers must also audit refrigeration and storage dependencies to ensure continuity during regional food price volatility.
The takeaway
Reliable power is not merely a utility but a foundational requirement for securing food production margins. Owners should monitor grid digitization pilot programs in their local markets as a signal for potential improvements in energy reliability.
Further reading
For broader trends regarding regional performance, visit Economic Indicators.
Source note: This article includes information reported by The Guardian Nigeria News - Nigeria and World News.
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