Loading...
Mitigating the Risks of Private Sector Involvement in the Electricity Sector in Sub-Saharan Africa
Alao, Olakunle Twesigye, Peter
Alao, Olakunle
Twesigye, Peter
Citations
Altmetric:
Titre
Publication date
2026-01-28
Document type
Research report
Pages
51
Author(s)
Advisors
Editor(s)
Other Contributors
Affiliation
ePub Date
Submitted date
Local subject classification
MeSH
Keywords
Collections
Files
Loading...
English Paper
Adobe PDF, 10.3 MB
Loading...
French Paper
Adobe PDF, 1.02 MB
Description
<html>
<head>
<title></title>
</head>
<body>
<p>Sub-Saharan Africa (SSA) faces an electricity access crisis, with over 600 million people lacking access to reliable power. Chronic underinvestment, institutional fragility and fragmentation, and operational inefficiencies have rendered many state-run utilities incapable of sustaining reliable service delivery, let alone meeting rising demand. In response, governments often running on budget deficits and influenced by international financial institutions have embraced private sector participation (PSP) as a means to mobilise capital, improve operational efficiency, and accelerate electrification. Yet the outcomes of PSP across SSA are mixed, raising questions about its effectiveness, equity, and long-term sustainability.</p>
<p>This study undertakes a comprehensive, mixed-methods analysis of PSP in SSA’s electricity sector. It maps the evolution and extent of private sector engagement across generation, transmission, and distribution; quantifies its prevalence; and assesses its impact on six core performance indicators: financial viability, access, affordability, quality of supply, operational efficiency, and decarbonisation.</p>
<p>The findings of this study affirm that PSP, when embedded within robust governance and regulatory frameworks as well as transparent procurement mechanisms and coherent sector planning, can contribute positively to power sector performance. However, these gains are not automatic. The strongest correlations between PSP and performance are observed in countries where governance is credible, regulatory agencies are functional, and policy environments are stable. Conversely, in contexts where institutions are weak, PSP has often produced limited or even adverse outcomes, such as overcapacity, fiscal strain, high tariffs, and social inequities. In summary, PSP can be a valuable tool for accelerating power sector transformation, but only when it is thoughtfully designed, responsibly governed, and firmly aligned with the public good. Further, sustainable electrification requires not just more investment, but smarter, fairer, and more accountable systems that prioritise resilience, equity, and long-term development.</p>
</body>
</html>
Language
English