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Business Insider
16 hours ago
- Business
- Business Insider
Top 10 African countries with the strongest energy regulation frameworks
The African Development Bank has released the 2024 edition of its Electricity Regulatory Index (ERI), confirming significant progress among African countries in strengthening the regulatory frameworks governing their electricity sectors. Business Insider Africa presents the African countries with the strongest energy regulation frameworks in 2024 The ranking is courtesy the AfDB's 2024 Electricity Regulatory Index (ERI), Senegal ranks highest in the 2024 index due to successful reforms and enhanced transparency, followed by Kenya and Uganda. This year's ERI results reflect not just the adoption of laws and policies, but the tangible implementation of reforms by various African countries, leading to stronger and more autonomous regulatory institutions. Since its launch in 2018, the ERI has served as a diagnostic and policy support tool designed to help governments, regulators, and development partners identify regulatory gaps, monitor progress, and prioritize reform efforts. The 2024 edition draws on extensive feedback from national utilities, energy regulators, and regional electricity bodies. It evaluates countries across three core pillars: Regulatory Governance, Regulatory Substance, and Regulatory Outcomes, each measuring a specific dimension of how well a country's regulatory framework supports transparency, efficiency, accountability, and long-term investment. According to the Bank, the latest results confirm that African electricity regulators are evolving. Once seen primarily as administrative arms of government, many have grown into strategic institutions with measurable influence on energy policy and market performance. Countries are beginning to move from commitment to delivery. Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation at the Bank Group, described the 2024 index as telling a 'hopeful story,' adding that regulators across the continent are beginning to show results. ' African countries are not just passing laws, they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence, ' he said. Top 10 Countries in the 2024 ERI The full list of the top ten performers based on their ERI scores is presented below: Rank Country ERI Score Governance (RGI) Substance (RSI) Outcomes (ROI) 1 Senegal 0.892 0.927 0.949 0.848 2 Kenya 0.889 0.926 0.941 0.837 3 Uganda 0.885 0.963 0.988 0.745 4 Namibia 0.875 0.871 0.883 0.870 5 Tanzania 0.858 0.899 0.888 0.786 6 Zimbabwe 0.848 0.869 0.946 0.730 7 Rwanda 0.826 0.916 0.952 0.610 8 Benin 0.807 0.887 0.849 0.687 9 Liberia 0.803 0.849 0.866 0.694 10 Niger 0.799 0.881 0.746 0.770 Senegal tops the 2024 Electricity Regulatory Index for the first time with a score of 0.892, driven by recent reforms and the 2021 creation of the CRSE, which boosted regulatory independence and transparency. Kenya ranks second at 0.889, thanks to EPRA's efforts in tariff reform and investor confidence. Uganda, the long-time leader, drops to third with 0.885, still leading in governance and substance, but affected by a decline in outcomes due to stalled power agreements expected to resume in 2025.
Zawya
3 days ago
- Business
- Zawya
Senegal and Kenya Top African Development Bank's Electricity Regulatory Index, as Regulators Drive Tangible Reforms
Kenya and Senegal have claimed the top spots in the African Development Bank's 2024 Electricity Regulatory Index (ERI) ( demonstrating exceptional progress in power sector governance and regulatory outcomes. The comprehensive assessment, officially unveiled today at the Africa Energy Forum in Cape Town, evaluates regulatory frameworks across 43 African countries. Uganda, Liberia and Niger round out the top five performers, with Niger registering one of the biggest gains, underlining the strong impact of sustained reforms and political commitment to power sector development. The ERI evaluates three dimensions—Regulatory Governance, Regulatory Substance, and Regulatory Outcomes (ROI). Notably, the ROI, which tracks service delivery and utility performance, recorded the most substantial improvement across the continent. Key findings from the 2024 ERI: Kenya and Senegal led with a score of 0.892, reflecting standout progress in tariff reform, regulatory outcomes, and utility performance. A remarkable 41 out of 43 participating countries achieved RGI scores above 0.5, representing a significant increase from 24 countries in 2022. Countries scoring below 0.500 reduced significantly from 19 in 2022 to just 6 in 2024. Even the lowest-performing country tripled its score—from about 0.10 to 0.33. 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. 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 2024 ERI shows that Africa's regulators are stepping up. 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,' says Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. For the first time, the 2024 ERI also assessed regional regulatory bodies, recognizing their growing role in harmonizing technical standards and enabling cross-border electricity trade. As the backbone of Mission 300, ERI continues to inform the design and implementation of national energy compacts—currently active in 12 countries, with another 20 in development. Bridging the Gap – Addressing Ongoing Challenges While celebrating regulatory progress, the report calls for greater focus on regulatory independence, the financial viability of utilities, and the integration of off-grid and mini-grid systems into national frameworks. The ERI underscores that regulation must translate into better access, affordability, and reliability, especially for underserved rural populations. The report outlines priority areas for enhancing regulatory effectiveness: Strengthening regulatory independence Enhancing accountability mechanisms Promoting transparency and predictability Improving stakeholder participation Deepening economic regulation and advancing cost-reflective tariff methodologies. 'The ERI 2024 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,' said Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation at the Bank Group. Launched in 2018, the ERI is a diagnostic and policy tool used by governments, regulators, and development partners to identify gaps, track progress, and prioritize reform efforts. The 2024 edition incorporates extensive feedback from utilities, regulators, and regional energy bodies. The full ERI 2024 report will be available here ( Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media Contact: Gertrude Kitongo Communication and External Relations Department Technical Contact: Callixte Kambanda Manager, Energy Policy, Regulations, and Statistics email: About the African Development Bank Group: The African Development Bank Group (AfDB) is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.
