AfDB, EPRA Move to Strengthen Electricity Regulation Across Africa

The African Development Bank, in partnership with the Kenya Energy and Petroleum Regulatory Authority, has intensified efforts to strengthen electricity regulation across Africa through a high-level peer learning session for regulators.

The session, held in Nairobi, brought together more than 15 national regulators, utilities, regional institutions and development partners to share experiences on improving tariff-setting frameworks and enhancing regulatory capacity.

The event, which formed part of EPRA’s 7th Annual Regional Research and Innovation Conference, focused on practical approaches to electricity pricing, cost-of-service studies and stakeholder engagement.

Speaking at the opening, the African Development Bank’s Division Manager for Energy Policy, Regulation and Statistics, Callixte Kambanda, stressed the importance of strong regulatory systems in achieving sustainable energy access across the continent.

He said that beyond infrastructure investment, effective regulation is critical to balancing affordability, financial sustainability and investor confidence in the electricity sector.

“Achieving universal access in Africa requires more than infrastructure investment; it demands strong regulatory systems capable of balancing affordability, financial sustainability and investor confidence,” he said.

According to him, regulators play a central role in creating an enabling environment for energy sector growth and in supporting the implementation of Mission 300, a joint initiative aimed at connecting 300 million Africans to electricity by 2030.

The peer learning session was organised under the theme, “Strengthening Tariff Setting Frameworks for Advancing Energy Affordability and Security in Sustainable Development.”

Participants examined Kenya’s tariff review framework as a case study, with EPRA presenting its experience in implementing multi-year tariff methodologies, performance-based regulation and public participation models.

Discussions also addressed common challenges facing electricity regulators across Africa, including political and economic constraints, consumer protection, integration of renewable energy, utility financial sustainability and access to financing.

The event forms part of the African Development Bank’s support under the Africa Energy Sector Technical Assistance Programme, which provides assistance to countries implementing policy, regulatory and institutional reforms under their National Energy Compacts.

The programme also supports countries undertaking tariff reforms and broader regulatory improvements aimed at strengthening the performance of the electricity sector.

Industry experts at the event noted that effective tariff-setting frameworks are essential for ensuring that utilities can recover costs while maintaining affordability for consumers.

They added that poorly designed tariffs could undermine sector performance, discourage investment and limit progress towards universal access.

The Mission 300 initiative, jointly led by the African Development Bank and the World Bank Group, seeks to expand electricity access to 300 million people across Africa by 2030.

Stakeholders at the session emphasised that achieving this target will require not only increased generation and transmission capacity but also strong regulatory institutions capable of managing the sector effectively.

The African Development Bank is currently supporting several countries through technical assistance programmes that cover economic, technical and legal aspects of regulation. These include tariff reforms, cost-of-service analysis, utility performance improvement, network connection policies and quality of service standards.

Participants said the peer learning platform would help strengthen collaboration among regulators, promote the exchange of best practices and support the development of harmonised regulatory approaches across the continent.

They also stressed the need for continued engagement among governments, regulators, private sector players and development partners to address the challenges facing Africa’s energy sector.

Observers say improving regulatory frameworks will play a critical role in accelerating electricity access, supporting economic growth and ensuring long-term sustainability in Africa’s power sector.