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Africa’s power regulators up their game

Africa is strengthening its energy regulation (Image source: Adobe Stock)

Senegal and Kenya have topped the list of Africa’s leading electricity regulators in a new report highlighting rising standards

The two countries claimed the top spots in the African Development Bank’s (AfDB) 2024 Electricity Regulatory Index (ERI), which evaluates regulatory frameworks across 43 African states.

Uganda, Liberia and Niger round out the top five performers.

Niger registered one of the biggest gains, underlining the strong impact of sustained reforms and political commitment to power sector development, the AfDB noted in a statement.

“The 2024 ERI shows that Africa’s regulators are stepping up,” said Dr Kevin Kariuki, AfDB vice-president for power, energy, climate and green growth.

“We are now seeing stronger institutions delivering real results for utilities and consumers. This shift is critical if we are to achieve Mission 300 and connect 300 million people to electricity by 2030.”

The ERI index evaluates three dimensions: regulatory governance, regulatory substance, and regulatory outcomes (ROI).

The latter category, ROI, which tracks service delivery and utility performance, recorded the most substantial improvements across the continent.

“Now in its seventh edition, the ERI shows strong momentum toward more effective, transparent and impactful regulation, with real-world results beginning to emerge,” the AfDB noted.

The report highlights “standout progress” in Kenya and Senegal in areas such as tariff reform, regulatory outcomes and utility performance.

Crucially, progress is being recorded across the continent with average scores drifting upwards in recent years, and even the lowest-ranked countries seeing imporced scores.

The ROI surged from roughly 0.40 in 2022 to 0.62 in 2024, showing that reforms are delivering tangible service improvements on the ground, the AfDB noted.

Priority areas for enhancing regulatory effectiveness include areas such as strengthening regulatory independence, enhancing accountability mechanisms, promoting transparency and predictability and improving stakeholder participation.

Wale Shonibare, director for energy financial solutions, policy and regulation at the AfDB said the ERI 2024 index tells a hopeful story.

“African countries are not just passing laws — they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence. However, challenges related to independence, financing, and enforcement persist.”

Launched in 2018, the ERI is a diagnostic and policy tool used by governments, regulators and development partners to identify gaps, track progress, and prioritise reform efforts.

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