REPORTS

Africa’s electricity regulators play a pivotal role in expanding energy access, ensuring sustainable utility performance, and fostering investor confidence. The Electricity Regulatory Index (ERI) for Africa, launched by the African Development Bank (AfDB) in 2018, is a composite index measuring the development of electricity sector regulatory frameworks across African countries. The ERI evaluates regulatory governance, substance and outcomes.

Governance covers legal and institutional setup; substance covers implementation of policies and regulations; and outcomes covers impact on utilities and consumers. So regulatory outcomes are the most important of the three factors which make up the whole index. As of 2024, the ERI covers 43 African countries with established regulators, providing a diagnostic tool to identify gaps and drive reforms.

Africa’s energy challenges cannot be overcome without strong regulatory frameworks. Over 595 million Africans still lack access to electricity. Policy and regulatory barriers remain a “vital challenge” to bringing them electricity. This is because weak regulatory environments and financially ailing utilities hinder private

investment and slow connection rates. Closing Africa’s massive electricity financing gap (estimated to be USD 25 billion/year)² Substantial improvements in legal and regulatory conditions will be required to attract private sector capital. External analysis confirms that regulatory reforms are a top priority. The most important changes are the introduction of costreflective tariff regimes to improve utility finances and service delivery. Indeed, by 2021, cost-of-service-based pricing was under discussion or in place in 24 African countries, signaling momentum toward more sustainable tariff policies.

This report presents an in-depth analysis of the 2024 ERI survey data and assesses performance per sub-indicator under each of the ERI’s three pillars. We compare results across countries and highlight key changes since 2021–2022, drawing on past ERI reports and external insights from recent developments. Each section provides actionable, policyfocused recommendations to address identified gaps, aiming to guide policymakers, regulators, and stakeholders in improving regulatory effectiveness for better access, governance, and financial sustainability.