The latest results of the Electricity Regulatory Index (ERI) for African countries in 2024 showcase significant progress in the implementation of regulatory reforms. This year’s report not only highlights the adoption of laws and policies but also emphasizes the tangible execution of these reforms by various African nations. The ERI, launched in 2018, serves as a crucial tool for assessing regulatory gaps, monitoring progress, and prioritizing reform efforts in the energy sector.
The 2024 edition of the ERI reflects feedback from national utilities, energy regulators, and regional electricity bodies. It evaluates countries based on three core pillars: Regulatory Governance, Regulatory Substance, and Regulatory Outcomes. These pillars measure the effectiveness of a country’s regulatory framework in promoting transparency, efficiency, accountability, and long-term investment in the energy sector.
According to the African Development Bank (AfDB), the latest results indicate a positive evolution of African electricity regulators. These regulators are no longer viewed as mere administrative bodies but have transformed into strategic institutions with significant influence on energy policy and market performance. Countries are transitioning from mere commitment to actual delivery of regulatory reforms.
Wale Shonibare, Director for Energy Financial Solutions, Policy, and Regulation at the AfDB, expressed optimism about the progress highlighted in the 2024 index. He stated, “African countries are not just passing laws, they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence,“.
The top 10 countries in the 2024 ERI rankings are as follows:
1. Senegal
2. Kenya
3. Uganda
4. Namibia
5. Tanzania
6. Zimbabwe
7. Rwanda
8. Benin
9. Liberia
10. Niger
Senegal claimed the top spot in the rankings with a score of 0.892, attributed to recent reforms and the establishment of the CRSE in 2021, which enhanced regulatory independence and transparency. Kenya secured the second position with a score of 0.889, credited to EPRA’s efforts in tariff reform and building investor confidence. Uganda, the previous leader, slipped to third place with a score of 0.885, primarily due to stalled power agreements that are expected to resume in 2025.
Overall, the 2024 ERI reflects a positive trajectory for African electricity regulators, showcasing their commitment to implementing reforms and driving progress in the energy sector.
