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Abstract
Power cuts have become a characteristic feature of many Sub-Saharan African
economies. This paper attempts to estimate the firm level impact of power out-
ages using panel data on firms from 15 Sub-Saharan African countries. Further,
I evaluate the impact of electricity self-generation in ameliorating the effects
of power outages on firm performance using a quasi-experimental approach.
Results from the analysis reveal significant negative effects of electricity short-
ages on firm productivity, size and labor employment. Finally, contrary to
the notion that self-generation may be helpful for firms during outage periods,
evidence from this paper suggest that reliance on self-generation is associated
with productivity losses albeit short run revenue gains.