Infrastructure financing in a developing economy : addressing the electricity supply deficit in Swaziland

Khumalo, Simphiwe Aloysius
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This study examines the relationship between electricity infrastructure finance and the economic growth of Swaziland in an attempt to determine the extent to which electricity infrastructure contributes to economic growth. The study also examines what factors determine the level electricity infrastructure finance in Swaziland, and the extent of the influence of these factors. This study hopes to add to the body of literature focused on scrutinising the infrastructure investment challenges in the low-income countries of the African region, and the discovery of innovative financing mechanisms that will bring the region to a favourable position where it can supply reliable energy that promotes the prosperity of its people. Using annual data, trend analysis and OLS regression techniques are applied to determine the extent of the relationship between electricity infrastructure investment and economic growth, as well as the economic and regulatory factors expected to influence the level of infrastructure investment, as suggested by literature. The level of electricity infrastructure investment is found to be positively correlated with economic growth and the macroeconomic stability of Swaziland. However, little to no correlation is found between the level of electricity infrastructure investment, and government revenue, stock market capitalization, and credit extended to the government and parastatals. Regulatory quality is found to be negatively correlated to electricity infrastructure investment.
In partial fulfilment of the requirements for the degree of Master of Management in Finance & Investment Management.
Khumalo, Simphiwe Aloysius (2016) Infrastructure financing in a developing economy : addressing the electricity supply deficit in Swaziland, University of the Witwatersrand, Johannesburg, <>