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Energy experts and researchers have highlighted the financial challenges facing electric utilities across Sub-Saharan Africa, where access to reliable and affordable electricity remains a major development concern.

During a seminar held on 26 May 2026, held at the African Centre of Excellence in Energy for Sustainable Development, (ACEESD) facilitated by Dr. Govinda R. Timilsina, Senior Research Economist at the Development Research Group of the World Bank Group, participants discussed the key factors affecting the financial performance of electricity utilities in the region.

The discussion was based on a study that analyzed descriptive data from the World Bank, the International Energy Agency (IEA), and national sources. The study assessed the performance of 87 electric utilities across 47 countries and identified both cost-side and revenue-side factors contributing to poor financial outcomes.

Findings revealed that more than two-thirds of vertically integrated and distribution utilities are unable to generate sufficient revenue to cover operational and debt-service costs. Major challenges include high fuel costs, particularly for oil-based generation, low capacity utilization, poor labor and capital productivity, significant transmission and distribution losses, and weak bill collection systems.

“Despite lower per capita incomes, consumers in many African countries pay relatively high electricity tariffs”, reads part of the findings.

The study noted that reducing transmission and distribution losses to levels achieved by South Africa and eliminating bill collection leakages could significantly improve utility revenues.

Researchers recommended increasing investment in lower-cost energy generation technologies, improving operational efficiency, strengthening governance and institutions, reducing system losses, enhancing revenue collection, and reforming electricity tariffs to ensure long-term financial sustainability.