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Today, the public sector in Africa, like in much of the rest of the world, is perceived as having led to inefficiency, waste, indifference and corruption in the provision of public services generally. The power supply sector is now experiencing a process of restructuring and reform, including privatization. The contributors to this volume, who are themselves involved in the policy process in their own countries, examine how far this movement towards restructuring and reform has proceeded in Malawi, Tanzania, Uganda and Zimbabwe.Based on empirical research, the authors have generated policy options and scenarios that are bound to be of vital interest to policy makers and implementers throughout Sub-Saharan Africa. Among the key topics dealt with are: the determinants of performance and efficiency; vertical and horizontal unbundling of power generation, distribution and sales; the role of independent power producers; the benefits and risks attendant on reform and privatization; and the legal and regulatory framework on which everything else depends.
As part of the wave of liberalisation sweeping most parts of the world, power sectors around the globe are coming under intense scrutiny, with some being restructured. This book presents six-country-case studies to examine the process and implementation experiences of power sector reform in Subsaharan Africa.
"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
Capacity building for the power sector is an important national responsibility, which Governments in Africa need to seriously address. The inability of Governments to mobilize the required level of investment and commitment to the development and retention of a wide array of skills needed by the power sector is, in part, responsible for many of the difficulties that are faced by the region's electricity industry.Under the aegis of the AFREPREN Capacity Building Theme Group, a regional study and four country studies (Zimbabwe, Mauritius, Ethiopia and South Africa) addressed the capacity building question in the African power sector. This volume presents the findings of the studies.The studies analyse issues of manpower recruitment, training and retention in national power utilities. They also highlight the challenges and implications of capacity building initiatives in a reforming electricity industry and propose innovative options for capacity building in the region's power sector.
it is increasingly apparent that the privatization experiment in sub-Saharan Africa has failed. This book shows that the state is set to dominate service delivery for the foreseeable future in much of the region, and that the public sector must be considered as a viable policy option for the delivery of water and electricity.
Attracting private investment and delivery of services to the poor majority are priority goals for reforming and regulating the power sector in Sub-Saharan Africa. The licensing process and the tariff regime are important determinants of new investment in the electricity industry. For the licensing process to attract private investors, the procedures must be clear and must function efficiently and transparently, while the tariff regime must reflect actual costs. This book examines the extent to which the twin goals of attracting investment and providing energy to the poor are addressed by the existing legal and regulatory framework. By studying six countries in the east and southern African region, some helpful lessons worth sharing with other African countries are learned.
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.