The Relationship between the Quality of Electricity Supply and Business Performance: the case of the Republic of Guinea

Abstract

This article examines the relationship between the quality of energy supply and business performance in Guinea. Using World Bank Enterprises Survey data, the methodology approach combines a descriptive statistical analysis, based in particular on the comparison of averages according to company characteristics, with a study of correlations. The findings reveal that power outages are frequent (9 outages per month) and long-lasting (2 hours and 2 minutes). They result in significant losses ranging from 5.29% to 12.29% of the revenue of Guinean companies, particularly in the service sector and for small enterprises. While using generators is a common response to these outages, they cover only an average of 23.36% of the required electricity, highlighting the persistent dependence of Guinean companies on a volatile power grid. Therefore, public authorities are encouraged to improve energy supply by strengthening the electrical grid, investing in maintenance of existing infrastructure, and developing renewable energy production capacities to diversify energy sources.

Classification JEL : D24, Q4, O4

Paper type: Empirical Research