2 November 2016

What is the link between power and jobs in Uganda?

To understand how investments in power create jobs, we commissioned this study in Uganda

To understand, whether more and better power helps create jobs and improve livelihoods, we commissioned an independent evaluation from Steward Redqueen in Uganda.

Understanding the number of jobs created as a result of a power sector investment isn’t an altogether straightforward task, and estimates do vary considerably. Most jobs aren’t created in power sector companies themselves, but in businesses throughout the economy that rely on electricity for production. As electricity provision improves, and production increases, they are also increasingly created in the supply chains of these businesses.

While it would be a gargantuan task to visit every Ugandan business to find out how improved power provision has impacted their hiring and procurements decisions, Steward Redqueen did go beyond the macro-economic models to get a sense of how businesses really respond to fewer outages. In Uganda, between 2011 and 2014, outages fell from 28 to 12 hours a month.

This evaluation established that the large increase in Uganda’s power provision between 2011 and 2014 resulted in a fifth of the country’s GDP increase over that period. This resulted in more than 200,000 new jobs. We have factored the findings of this evaluation into our investment strategy.