Understanding electricity utilities in sub-Saharan Africa: The role of civil society in improving performance, governance, and accountability

Overview

This report provides a primer on the performance of electricity utilities in sub-Saharan Africa, reflecting on the current landscape of power sector and utility challenges, the reforms undertaken to address performance failures, opportunities for a “utility of the future” amid the global energy transition, governance frameworks available to assess performance (like the infrastructure regulatory system and World Bank’s Utility Performance and Behavior Today [UPBEAT] platform), and the prospects for changing the political economy of state-owned utilities to significantly improve transparency, accountability, and performance. It provides foundational knowledge on how to use financial statements and economic tools so that nonexperts can assess the financial health of a utility for the purposes of demanding greater accountability. It also provides insights on why energy sector power purchase agreements (PPAs) should be made more transparent for greater public accountability.

Further, the primer lays out the need for an enhanced role of civil society in advocating for improved transparency and greater civil participation in the governance of state-owned utilities and how regulation can be of further help. The key takeaway is that state-owned enterprises should be subject to commercial governance arrangements, including mandatory and stringent contracts and exposure to some private capital as well as stakeholder annual general meetings, open to the public, similar to those that occur in the private sector.

This report complements three other reports published for Ghana, Kenya, and South Africa. Each of those reports focuses on understanding the specific governance conditions surrounding their respective national electricity utilities. All these reports together are intended to build the programmatic and campaigning capacity among civil society actors to enable them to engage in improving the governance of electricity utilities. As such, the intended audience for this report is, first, members of civil society, and then policymakers and energy sector practitioners who are concerned about the operations of their national electricity utilities and who are contemplating advocacy and programming to improve their performance.