DR Congo Advances Electricity Sector Reforms With African Development Bank Support

The Democratic Republic of the Congo (DRC) is advancing reforms in its electricity sector with support from the African Development Bank (AfDB), aiming to improve the financial sustainability of utilities, attract private investment, and expand access to electricity across the country.

The Electricity Sector Regulatory Authority (ARE) and the African Development Bank held a stakeholder workshop in Kinshasa from September 21 to 25 under the African Energy Sector Technical Assistance Programme (AESTAP). The workshop brought together representatives from the Ministry of Water Resources and Electricity, ARE, the National Electricity Company (SNEL), private electricity operators and other public institutions.

Discussions focused on three major regulatory reforms. These include determining the cost of electricity supply, harmonising the methodology used to set electricity tariffs and developing a regulatory framework for connections to the electricity grid.

A tariff study covering SNEL’s operational area is expected to provide ARE with better tools to assess the actual cost of electricity services, changes in electricity demand and the revenues required by electricity operators. The study recommends a gradual move towards a transparent and equitable tariff framework.

The proposed approach is intended to protect household purchasing power while allowing electricity companies to recover sufficient costs and generate returns needed to support investment in power generation, transmission and distribution infrastructure.

Callixte Kambanda, Head of the Energy Policy, Regulation and Statistics Division at the African Development Bank, said effective economic regulation is important for attracting investment, strengthening the sustainability of the electricity sector and improving the quality of services.

ARE Director-General Soraya Aziz-Moto said the tariff study would help the regulator better understand sector costs, demand changes and the impact of pricing decisions. According to her, the work is expected to support more transparent and predictable regulation while taking consumer needs into account.

The reforms also seek to improve the financial viability of the electricity sector and provide greater certainty for investors. African Development Bank Country Manager for the DRC Cherif Mohamed said the initiative forms part of a broader effort to develop a well-regulated and financially sustainable electricity sector capable of attracting the investment required to expand electricity access.

The study also identified differences in SNEL’s customer base. According to SNEL’s 2024 annual report, the company had nearly one million billed customers and sold around 10,000 GWh of electricity annually. Most electricity consumption came from high-voltage customers.

At the same time, low-voltage customers represented more than 99% of SNEL’s customer portfolio. However, a relatively small number of large industrial consumers accounted for the majority of electricity consumption. The imbalance highlights the need for improved sector data to strengthen national electricity demand forecasting.

The study recommends initially implementing a simple and operational tariff framework. More advanced regulatory mechanisms could be introduced gradually as data quality, institutional capacity and regulatory systems improve.

The reforms are being implemented under AESTAP and form part of the wider Mission 300 initiative led jointly by the African Development Bank Group and the World Bank Group. Mission 300 aims to connect 300 million people in Africa to electricity by 2030.