Do water cuts affect productivity? Case study of African manufacturing firms

Abstract

This study sought to examine the impact of water disruptions on productivity in African manufacturing firms, using cross-sectional data from the World Bank enterprise surveys. We measured water infrastructure quality or water disruptions using the number of hours per day without water and found this indicator to be a negative and significant determinant of productivity. At country level, this variable seems to be a significant determinant in Uganda and Zambia, whilst firms in the food and agriculture, chemical and pharmacy as well as construction and metals sectors are also similarly affected.
To improve economic growth through firm productivity and hence encourage employment creation and better standards of living, governments in Africa need to come up with measures to strengthen the effectiveness of both technical and institutional water infrastructure services.