Electricity is a fundamental pillar for socio-economic development, progress, industry growth and comfortable daily living for humans across the globe. In Africa, access to reliable and affordable electricity is more than a mere necessity. It is an index for privilege, an indicator of good governance and a viable measure of economic development.
The truth is many African countries are still grappling with the possibility of generating and distributing power to their citizens efficiently and affordably. According to the International Energy Agency, approximately 80 million people in sub-Saharan Africa lack access to electricity. This constitutes over 50% of the region’s population.
The challenges in electricity generation and distribution across Africa are multifaceted. Insufficient infrastructure, high electricity theft, estimated billing, a worsening financial crisis in the power sector, inadequate investment, outdated technologies, and a reliance on non-renewable energy are key issues bedevilling the ecosystem.
Other challenges include political instability, economic constraints, and issues related to governance pose significant hurdles to developing a robust and reliable power sector.
Even in areas where citizens have access to electricity, the supply is erratic and the cost is exorbitant. Nigeria, for instance, increased its electricity tariff by over 168%, with billing jumping from N23.5 ($0.03) per kilowatt-hour (kWh) in 2015 to N63 ($0.08) per kWh as of January 2023.
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The cost of 1 kWh electricity: A closer look
Examining the cost of electricity, particularly measured in kilowatt-hours (kWh), provides insight into the affordability and accessibility. While comprehensive and up-to-date data on electricity prices across all African countries is a complex feat due to varying tariffs, subsidies, and market dynamics, there are identifiable trends.
The cost of electricity is comparatively higher in many African nations than in other parts of the world. Factors such as inadequate infrastructure, reliance on imported fuel for power generation and inefficient systems contribute to elevated tariffs, burdening consumers and hindering economic growth.
African countries use a diverse range of energy resources, including oil, gas, coal, hydro, and solar power. Hence, availability and affordability vary widely across the continent.
In this article, we list the top 10 African countries with the cheapest cost of electricity per 1 kWh, as of December 2022, according to Statista.
Read also: Amid electricity crisis, South Africa produces first-ever electric taxi
Note: This article does not factor in the availability of supply; however, according to research, notably, countries like Egypt, Morocco, and Tunisia have achieved 100% national electricity access, both in urban and rural areas, setting a commendable standard for the continent. Also, Cape Verde tops the list with the most expensive electrical bill, averaging around 0.29 U.S. dollars.
1. Sudan
Sudan, situated in North East Africa, has developed one of the most extensive power systems in Sub-Saharan Africa. The country predominantly relies on two primary sources of energy: hydroelectricity and thermal generation.
With a current capacity of about 3.5 gigawatts, Sudan divides its energy generation nearly equally, with each category contributing approximately 50% to the total capacity. The hydroelectric power is harnessed from the Nile River through various dams, showcasing the nation’s utilisation of its natural resources for energy production.
Additionally, Sudan’s thermal power stations play a pivotal role in catering to the country’s energy demands, showcasing a diversified approach to power generation. Currently, the country has one of the lowest household electricity prices in the continent, at just $0.001 per kilowatt-hour.
2. Ethiopia
Ethiopia, positioned as the Horn of Africa, boasts of an evolving power generation infrastructure. The country has a rich history in energy, dating back to 1889 when electricity was introduced to the imperial palace.
The nation harnesses the potential of its numerous rivers, including the Blue Nile and the Omo River, to generate electricity through various hydroelectric dams. With an installed capacity of 11,146,860 megawatt-hours as of 2016, Ethiopia’s energy landscape emphasizes the significance of hydropower in meeting its electricity demands.
Additionally, the country has been exploring other renewable sources such as wind and solar to diversify its energy mix, indicating a forward-looking approach toward sustainable energy solutions.
With an electricity generation capacity exceeding annual consumption needs, Ethiopia charges households $0.01 per kilowatt-hour, leveraging historical advancements in electricity since its introduction in 1889.
3. Libya
Libya, situated in North Africa, has a noteworthy electricity generation setup. As of 2016, the country generated a substantial amount of electricity, specifically 34,244,680 megawatt-hours, effectively exceeding its annual consumption requirements.
Libya’s power generation is mainly from non-renewable sources, particularly fossil fuels like oil and gas, which play a pivotal role in meeting the nation’s energy needs.
This reliance on traditional fossil fuel sources is a characteristic feature of Libya’s energy landscape, and despite having an abundance of sunlight, solar energy hasn’t been as extensively integrated into the national grid.
The country’s electricity infrastructure primarily revolves around thermal power plants, utilising the nation’s rich oil and gas reserves to fuel its energy production. Offering household electricity at a similar cost of $0.001 per kilowatt-hour, Libya generates substantial electricity, covering more than its annual consumption needs.
4. Zimbabwe
Zimbabwe’s power generation primarily relies on a combination of hydropower and coal-fired generators. The nation has one major hydropower plant along with four coal-fired generators, collectively contributing to a total combined capacity of 2,240 megawatts (MW).
However, despite these power generation assets, only around 79.9% of Zimbabwe’s population has access to electricity, highlighting some challenges in ensuring universal electricity access.
The country’s infrastructure mix is a blend of renewable and non-renewable sources, but improvements in expanding access and diversifying the energy mix remain pivotal for Zimbabwe’s energy security and socio-economic development.
Despite limited access to electricity for its population, Zimbabwe maintains a competitive rate of $0.01 per kilowatt-hour.
5. Angola
Angola, a major oil-exporting country and a member of OPEC, possesses a diverse energy mix. Its current installed capacity is estimated at 5.6 gigawatts (GW), of which 4.5 GW is available for use.
Approximately 68% of Angola’s energy comes from hydropower sources, with another 31.3% sourced from various fossil fuels, and a minor percentage (0.7%) derived from a hybrid of solar and fossil fuels. Despite its significant energy potential, Angola faces challenges in fully harnessing its energy resources to meet the demands of its population and industrial sector.
The country aims to expand and modernise its energy infrastructure to enhance electricity access and support economic growth. A significant oil exporter, Angola’s households pay $0.03 per kilowatt-hour for electricity, utilising a diverse energy mix primarily comprising hydropower.
6. Zambia
Located in southern Africa, Zambia has significant hydropower resources. Households pay $0.03 per kilowatt-hour for electricity, which is relatively low compared to other African countries.
Its electricity generation primarily relies on hydropower, drawing from the abundant water resources of the Zambezi River and its tributaries. The nation boasts one of Africa’s largest hydropower stations, the Kariba Dam, which contributes significantly to its energy grid.
Additionally, the country operates several smaller hydropower plants and has initiated plans to diversify its energy sources by investing in solar, wind, and thermal power projects. Despite these efforts, Zambia often faces challenges in maintaining a consistent power supply due to a combination of factors, including inadequate infrastructure, fluctuating water levels affecting hydropower, and insufficient investment in alternative energy sources.
7. Nigeria
Nigeria is the largest economy in Africa and has significant energy resources, including oil and gas. However, the country has been facing significant challenges in the electricity sector, including power outages and low electrification rates in rural areas.
Nigerian households pay $0.03 per kilowatt-hour for electricity, which is relatively low compared to other African countries. The country generates most of its electricity from gas and hydropower.
8. Egypt
Egypt is the most populous country in North Africa and has a well-developed electricity sector. The average cost of 1 kWh of electricity in Egypt is $0.03, one of the lowest in Africa and the same as Nigeria. The country generates most of its electricity from natural gas, followed by oil and hydropower.
The country currently generates electricity well beyond its annual consumption needs.
9. Algeria
Algeria is the largest country in Africa and has significant energy resources, including oil and gas. The average cost of 1 kWh of electricity in Algeria is $0.04, which is also one of the lowest in Africa.
Algeria’s electricity generation primarily relies on natural gas and oil, which account for a significant portion of the country’s energy mix. The nation possesses substantial reserves of natural gas and oil, making them readily available sources for power generation. Hydroelectric power also contributes to the electricity grid but to a lesser extent compared to fossil fuels.
10. Ghana
Ghana’s electricity generation is a mix of hydroelectricity, thermal, and renewable energy sources. The Akosombo Dam, situated on the Volta River, is a major hydroelectric power plant that supplies a substantial portion of Ghana’s electricity.
Other hydroelectric dams, including Bui and Kpong, also contribute to the country’s power generation. Thermal plants, often powered by oil, gas, or diesel, complement the energy mix, providing electricity during periods of low water levels or high demand. Ghana has also made strides in renewable energy, particularly with solar and wind power projects, aiming to diversify its energy sources and reduce dependency on traditional fossil fuels.
Despite efforts to expand its energy infrastructure, challenges such as irregular power supply due to insufficient capacity and funding constraints persist in Ghana’s energy sector. With hydro and thermal generation as primary sources, Ghana exports power to neighbouring nations but charges households $0.07 per kilowatt-hour due to infrastructure challenges.
Electricity cost in Africa: a summary
Infrastructure, energy sources, and regulatory policies all have an impact on how affordable electricity is in different African nations. While some nations offer electricity at remarkably low rates, others face challenges in providing affordable power to their populations.
These disparities underscore the critical need for sustainable energy solutions, investment in infrastructure, and effective policies to ensure universal and cost-effective access to electricity across the continent.
Notably, the top 10 African countries with the cheapest cost of 1 kWh of electricity have significant energy resources and have been investing heavily in renewable energy in recent years.
These countries have the potential to become leaders in the transition to a low-carbon economy and a sustainable energy future for Africa.
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