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African Development Bank and the World Bank joined forces to launch parallel reports, respectively capturing the state of power sector regulation in Africa, and more broadly across the developing world. The launch event was attended by 240 attendees including government officials, regulatory entities, development finance institutions and African and international private sector stakeholders.
The African Development Bank’s Electricity Regulation Index (ERI), running since 2018, has been widely adopted by regulators and other stakeholders across the African continent to benchmark electricity regulatory environments and to guide reforms in the sector. The new fifth edition covers 44 of the 45 African countries that host independent regulatory authorities.
This year also marks the inaugural edition of Global Electricity Regulatory Index (GERI) 2022, sponsored by the World Bank’s Energy Sector Management Assistance Program (ESMAP) and undertaken in partnership with the African Development Bank. GERI surveys 82 non-OECD countries from across the globe – about half in Sub-Saharan Africa and the rest across Asia, Europe, the Middle East, and Latin America – and forms part of the World Bank’s global effort to promote a robust electricity sector regulatory environment.
Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation at the African Development Bank noted that the Bank has pioneered efforts to mainstream electricity sector regulation issues in Africa since 2018, supporting the establishment of robust legal and regulatory frameworks and create enabling environments for private sector investment.
“This year heralds a crucial new stage for our research thanks to our collaboration with the World Bank This allows us to compare African regulation with that of other developing regions, and shows that the ERI has been influential not only in Africa but also the rest of the world”, Shonibare said.
“While a lot of progress has been made with the establishment of regulatory frameworks, the Global Electricity Regulatory Index report highlights some systematic gaps, particularly with regard to regulatory independence and the practice of tariff regulation,” said Vivien Foster, World Bank Chief Economist for Infrastructure.