Adoption of Electricity in Rural Rwanda 10 Years after Connection

Abstract

Abstract Power grid extension into hitherto unconnected areas is a key policy goal in Sub-Saharan Africa. Yet, connection and usage rates remain low in rural grid-covered areas, at least in the short and medium run. This paper provides a long-term follow-up of a large grid extension program in rural Rwanda, analyzing electricity adoption over time in a panel of 41 communities electrified up to ten years ago. Using both survey and administrative data, we find that nearly half of the households in grid-covered communities remain unconnected. Even among those directly under the distribution grid, electrification rates barely exceed 80%. Electricity consumption and appliance use are low and have not increased over time. These findings suggest that, from an economic development or cost-benefit standpoint, rural grid investments are hard to justify. Instead, rights-based arguments centered on equity and fairness may offer a more compelling – albeit more controversial – justification for such investments.