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Mitigating the Risks of Private Sector Involvement in the Electricity Sector in Sub-Saharan Africa

dc.contributor.authorAlao, Olakunle
dc.contributor.authorTwesigye, Peter
dc.date.accessioned2026-01-29T14:56:25Z
dc.date.available2026-01-29T14:56:25Z
dc.date.issued2026-01-28
dc.identifier.doi10.21201/2026.000117
dc.identifier.urihttp://hdl.handle.net/10546/621780
dc.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&#8217;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>en_US
dc.format.extent51en_US
dc.language.isoEnglishen_US
dc.publisherOxfamen_US
dc.relation.urlhttp://policy-practice.oxfam.org.uk/publications/mitigating-the-risks-of-private-sector-involvement-in-the-electricity-sector-in-621780
dc.subjectClimate changeen_US
dc.subjectEconomicsen_US
dc.subjectGovernance and citizenshipen_US
dc.subjectPrivate sectoren_US
dc.titleMitigating the Risks of Private Sector Involvement in the Electricity Sector in Sub-Saharan Africaen_US
dc.typeResearch reporten_US
oxfam.signoff.statusFor public use. Can be shared outside Oxfamen_US
oxfam.subject.countryBotswanaen_US
oxfam.subject.countryCameroonen_US
oxfam.subject.countryCôte D'Ivoireen_US
oxfam.subject.countryEthiopiaen_US
oxfam.subject.countryGhanaen_US
oxfam.subject.countryKenyaen_US
oxfam.subject.countryLiberiaen_US
oxfam.subject.countryMauritiusen_US
oxfam.subject.countryNamibiaen_US
oxfam.subject.countryNigeriaen_US
oxfam.subject.countrySouth Africaen_US
oxfam.subject.countryTanzaniaen_US
oxfam.subject.countryUgandaen_US
oxfam.subject.countryZambiaen_US
oxfam.subject.keywordElectricityen_US
oxfam.subject.keywordPrivatizationen_US
oxfam.subject.keywordEnergy sectoren_US
refterms.dateFOA2026-01-29T14:56:27Z


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