A Dissertation Submitted in Partial Fulfillment of the Requirements for Award
of the Degree of Master of Business Administration (MBA) of
Mzumbe University
Electricity plays a vital role in economic and social improvement in the rural areas of
Tanzania as it provides for improved social services, living conditions and agro
productivity. While, the government of Tanzania is striving to increase electricity
access in rural areas, only 10% of the rural households have access to electricity. This
study sought to find out the impact of rural electrification on economic and social
improvements in Mufindi district. The study assesses whether there is an
improvement in household living standards, increase in agro-productivity and
provision of social services in Mufindi district due to electrification. The study used
longitudinal research survey design of two waves, whereby the first wave was
collected in August 2009 and the second wave was collected June 2019. In both
waves, a sample of 327 households was randomly selected, whereas the first wave
had a total of 6,295 households whilst the second wave had a total of 6,384
households residing in the 14 villages located in 3 wards of Mufindi district. The
panel research design included a sample of enterprises and community data such as
schools and health centers in selected villages. The study used both descriptive and
inferential statistics methods such as t-statistics, frequency, percent, mean, minimum
and maximum and paired t-test. The findings of the study revealed that; electricity has
improved housing condition whereby after electrification 100% of sampled
households have their main building with iron roof and walls made of burn bricks.
Electricity has significantly reduced the expenditure incurred in energy by
households, a reduction by 47%, as well as resulted into positive impact on agroproductivity. Indeed, increase in cash crops production by 44%, possibly due to
increasing production efficiency. Also, an increase number of dormitories with
electricity connected by 75% and increased in number of medical experts by 27%, as
well as reduction of environment degradation. The policy implication of the study is
that that stakeholders should strive to ensure that the electrification is enhanced in
rural area so that the social services and household living standard are improved in
rural areas.