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"Power-sector reform and regulation in Africa offers detailed, up-to-date and original research into how governments and policymakers in six African countries have grappled with the development of their energy sectors. Arising out of a two-year peer-learning process involving senior executives in the electricity regulators in each country, the book contains an intelligent and clear analysis of the knowledge and shared experiences gathered in Africa by African scholars."--Publisher's note
During the 1990s, a new paradigm for power sector reform was put forward emphasizing the restructuring of utilities, the creation of regulators, the participation of the private sector, and the establishment of competitive power markets. Twenty-five years later, only a handful of developing countries have fully implemented these Washington Consensus policies. Across the developing world, reforms were adopted rather selectively, resulting in a hybrid model, in which elements of market orientation coexist with continued state dominance of the sector. This book aims to revisit and refresh thinking on power sector reform approaches for developing countries. The approach relies heavily on evidence from the past, drawing both on broad global trends and deep case material from 15 developing countries. It is also forward looking, considering the implications of new social and environmental policy goals, as well as the emerging technological disruptions. A nuanced picture emerges. Although regulation has been widely adopted, practice often falls well short of theory, and cost recovery remains an elusive goal. The private sector has financed a substantial expansion of generation capacity; yet, its contribution to power distribution has been much more limited, with efficiency levels that can sometimes be matched by well-governed public utilities. Restructuring and liberalization have been beneficial in a handful of larger middle-income nations but have proved too complex for most countries to implement. Based on these findings, the report points to three major policy implications. First, reform efforts need to be shaped by the political and economic context of the country. The 1990s reform model was most successful in countries that had reached certain minimum conditions of power sector development and offered a supportive political environment. Second, countries found alternative institutional pathways to achieving good power sector outcomes, making a case for greater pluralism. Among the top performers, some pursued the full set of market-oriented reforms, while others retained a more important role for the state. Third, reform efforts should be driven and tailored to desired policy outcomes and less preoccupied with following a predetermined process, particularly since the twenty-first-century century agenda has added decarbonization and universal access to power sector outcomes. The Washington Consensus reforms, while supportive of the twenty-first-century century agenda, will not be able to deliver on them alone and will require complementary policy measures
Inadequate electricity services pose a major impediment to reducing extreme poverty and boosting shared prosperity in Sub-Saharan Africa. Simply put, Africa does not have enough power. Despite the abundant low-carbon and low-cost energy resources available to Sub-Saharan Africa, the region s entire installed electricity capacity, at a little over 80 GW, is equivalent to that of the Republic of Korea. Looking ahead, Sub-Saharan Africa will need to ramp-up its power generation capacity substantially. The investment needed to meet this goal largely exceeds African countries already stretched public finances. Increasing private investment is critical to help expand and improve electricity supply. Historically, most private sector finance has been channeled through privately financed independent power projects (IPP), supported by nonrecourse or limited recourse loans, with long-term power purchase agreements with the state utility or another off-taker. Between 1990 and 2014, IPPs have spread across Sub-Saharan Africa and are now present in 17 countries. Currently, there are 125 IPPs, with an overall installed capacity of 10.7 GW and investments of $24.6 billion. However, private investment could be much greater and less concentrated. South Africa alone accounts for 67 IPPs, 4.3 GW of capacity and $14.4 billion of investments; the remaining projects are concentrated in a handful of countries. The objective of this study is to evaluate the experience of IPPs and identify lessons that can help African countries attract more and better private investment. At the core of this analysis is a reflection on whether IPPs have in fact benefited Sub-Saharan Africa, and how they might be improved. The analysis is based primarily on in depth case studies, carried out in five countries, including Kenya, Nigeria, South Africa, Tanzania and Uganda, which not only have the most numerous but also among the most extensive experience with IPPs.
Energy subsidies are aimed at protecting consumers, however, subsidies aggravate fiscal imbalances, crowd out priority public spending, and depress private investment, including in the energy sector. This book provides the most comprehensive estimates of energy subsidies currently available for 176 countries and an analysis of “how to do” energy subsidy reform, drawing on insights from 22 country case studies undertaken by the IMF staff and analyses carried out by other institutions.
The reform of energy subsidies is an important but challenging issue for sub-Saharan African (SSA) countries. There is a relatively large theoretical and empirical literature on this issue. While this paper relies on that literature, too, it tailors its discussion to SSA countries to respond to the following questions: Why it is important to reduce energy subsidies? What are the difficulties involved in energy subsidy reform? How best can a subsidy reform be implemented? This paper uses various sources of information on SSA countries: quantitative assessments, surveys, and individual (but standardized) case studies.
Although Africa is the most under-supplied region of the world for electricity, its economies are utterly dependent on it. There are enormous inequalities in electricity access, with industry receiving abundant supplies of cheap power while more than 80 per cent of the continent's population remain off the power grid. Africa is not unique in this respect, but levels of inequality are particularly pronounced here due to the inherent unevenness of 'electric capitalism' on the continent. This book provides an innovative theoretical framework for understanding electricity and capitalism in Africa, followed by a series of case studies that examine different aspects of electricity supply and consumption. The chapters focus primarily on South Africa due to its dominance in the electricity market, but there are important lessons to be learned for the continent as a whole, not least because of the aggressive expansion of South African capital into other parts of Africa to develop and control electricity. Africa is experiencing a renewed scramble for its electricity resources, conjuring up images of a recolonisation of the continent along the power grid. Written by leading academics and activists, Electric Capitalism offers a cutting-edge, yet accessible, overview of one of the most important developments in Africa today - with direct implications for health, gender equity, environmental sustainability and socio-economic justice. From nuclear power through prepaid electricity meters to the massive dam projects taking place in central Africa, an understanding of electricity reforms on the continent helps shape our insights into development debates in Africa in particular and the expansion of neoliberal capitalism more generally.
Critical examinations of efforts to make governments more efficient and responsive Political upheavals and civil wars in the Middle East and North Africa (MENA) have obscured efforts by many countries in the region to reform their public sectors. Unwieldy, unresponsive—and often corrupt—governments across the region have faced new pressure, not least from their publics, to improve the quality of public services and open up their decisionmaking processes. Some of these reform efforts were under way and at least partly successful before the outbreak of the Arab Spring in 2010. Reform efforts have continued in some countries despite the many upheavals since then. This book offers a comprehensive assessment of a wide range of reform efforts in nine countries. In six cases the reforms targeted core systems of government: Jordan's restructuring of cabinet operations, the Palestinian Authority's revision of public financial management, Morocco's voluntary retirement program, human resource management reforms in Lebanon, an e-governance initiative in Dubai, and attempts to improve transparency in Tunisia. Five other reform efforts tackled line departments of government, among them Egypt's attempt to improve tax collection and Saudi Arabia's work to improve service delivery and bill collection. Some of these reform efforts were more successful than others. This book examines both the good and the bad, looking not only at what each reform accomplished but at how it was implemented. The result is a series of useful lessons on how public sector reforms can be adopted in MENA.
African countries are pursuing a number of development agendas toward achieving economic growth that is inclusive, pro-poor, and sustainable, particularly the type that can unleash the potential of women and booming youthful populations. However, available evidence shows that many African countries have experienced economic hardships and have performed more poorly than other developing and emerging countries in the global south. The Handbook of Research on Institution Development for Sustainable and Inclusive Economic Growth in Africa is an essential research publication that provides comprehensive research on the processes of building viable institutions in Africa that will serve as the fulcrum for utilizing and managing resources as well as promoting economic growth that is inclusive and sustainable. Featuring topics such as climate change, financial development, and poverty, this book is ideal for researchers, policymakers, developers, economic professionals, academicians, government officials, business professionals, and students.
This open access book presents a picture of the current energy challenges on the African continent (and the Sub-Saharan region in particular) and proposes pathways to an accelerated energy transition. Starting with an analysis of the status quo and the outlook for Africa’s energy demand and energy access, it provides an account of the available resources, including hydrocarbons and renewable energy resources, which are playing an increasingly crucial role. It then moves on to analyze the level of investment required to scale-up Africa’s energy systems, shedding light on the key barriers and elaborating on potential solutions. It also provides a suggestion for improving the effectiveness of EU–Africa cooperation. While mainly intended for policymakers and academics, this book also speaks to a broader audience interested in gaining an overview of the challenges and opportunities of the African energy sector today and in the future.
Massive private investment that complements public investment is needed to close the demand-supply gap and make reliable power available to all Indians. Government efforts have sought to attract private sector funding and management efficiency throughout the electricity value chain, adapting its strategy over time.