Does access to electricity enable the uptake of small and medium enterprises in South Africa

South Africa increased its electrification coverage from 36% to over 70% in the last 12 years. Predominantly poor areas, to which service provision was neglected in the past, got access to electricity. The socio-political benefits of the national electrification programme are documented, but the economic benefits which are generally assumed have not yet been analysed in detail. This paper explores how far existing surveys provide data on the impact of electrification on the uptake of small and medium enterprises or self-employment among households. We analyse nationwide household survey data from 1995 to 2004. Variation in electrification rates among households seems correlated with SMME uptake, but the nature of the association varies across regions and appears to display differing trends over time. A trend of positive correlation of SMMEs and electricity access in poor rural areas does seem apparent