Top 10 African Countries with the Most Affordable Electricity Prices

In this article, we will explore the top 10 African countries with the cheapest electricity prices in 2023, based on the latest data and projections.

List Of African Countries With The Cheapest Electricity Prices

Introduction

Access to affordable and reliable electricity is a crucial factor for economic growth and development in any country. In Africa, where energy poverty is still a challenge, the availability of affordable electricity is of utmost importance.

Gasoline prices, Octane-95, 04-Dec-2023: The average price of gasoline around the world is 1.31 U.S. Dollars per liter. However, there is a substantial difference in these prices among countries

LATEST Top 10 African countries with the cheapest electricity prices in 2023

1. Ethiopia
2. Sudan
3. Libya
4. Angola
5. Zimbabwe
6. Zambia
7. Nigeria
8. Egypt
9. Algeria
10. Democratic Republic of Congo

Source – Global Petrol Prices

Top 10 Countries With The Most Expensive Household Electricity Prices In Africa

SOURCE: BUSINESS INSIDER AFRICA

1. Rwanda: This East African country has the most expensive household electricity price on the continent. According to Statista, Rwandan households pay an average of $0.26 for every kilowatt hour of electricity they get. So, assuming that Rwandans get to have 24-hour electricity, this would translate to $6.24 per day and $194.44 per month.
2. Cape Verde: This island country has the second most expensive household electricity price in Africa. Here, one-kilowatt hour of electricity would cost a household in Cape Verde $0.25. Again for context, this would translate to $6 per day and $186 per month, assuming households here get access to 24-hour electricity.
3. Mali: This West African country comes in next in the third position, with a price of $0.23 for every kilowatt hour of electricity. Now, Mali does not have a constant electricity supply. But assuming it does, this would mean that Malian households would have to pay $5.52 daily and $171.12 monthly for electricity.
4. Burkina Faso: This Francophone Western African country has the fourth most expensive household electricity price in Africa. According to our source, one-kilowatt hour of electricity in this land-locked country would cost $0.22. In a scenario where the country supplies 24-hour electricity to households, this would equate to $5.28 per day and $163.68 per month.
5. Gabon: Gabon currently holds the record for the fifth most expensive African country with the most expensive household electricity price. Much like Burkina Faso, a kilowatt hour of electricity here would cost households $0.22. Assuming Gabon supplies 24-hour electricity to every household, this would amount to a total price of $5.28 and $163.68 daily and monthly, respectively.
6. Kenya: Households in this East African country also pay an average price of $0.22 for every kilowatt hour of electricity they get. Based on our working assumption, this would equate to $5.28 per day and $163.68 per month.
7. Togo: Households in this West African country pay an average price of $0.20 per kilowatt hour of electricity they use. This would amount to $4.8 daily and $148.8 monthly.
8. Uganda: Uganda’s average household electricity price is $0.19 per one-kilowatt hour of electricity. This would translate to $4.56 per day and $141.36 per month.
9. Senegal: In this Francophone West African country, households pay $0.18 for every kilowatt hour of electricity they use. This would translate to $4.32 per day and $133.92 per month.
10. Sierra Leone: Finally, we have Sierra Leone where households pay an average electricity price of $0.15 per kilowatt hour of electricity. This would translate to $3.6 per day and $111.6 per month.

In this article, we will explore the top 10 African countries with the cheapest electricity prices in 2023, based on the latest data and projections.

2023 Average  Top 10 African countries with the cheapest electricity prices in 2023

1. Ethiopia

With its abundant hydroelectric resources, Ethiopia tops the list of African countries with the cheapest electricity prices. The country has made significant investments in the development of its hydropower infrastructure, which has led to a substantial reduction in electricity costs. Ethiopia’s commitment to renewable energy has not only made electricity more affordable for its citizens but has also positioned the country as a potential regional energy hub.

2. Uganda

Uganda is another African country that offers affordable electricity prices. The government has implemented various initiatives to increase access to electricity and reduce costs. Investments in renewable energy, particularly hydroelectric power, have played a significant role in driving down electricity prices. With ongoing efforts to expand its energy infrastructure, Uganda is expected to maintain its position as one of the most affordable countries for electricity in Africa.

3. Kenya

Electricity prices in dollars increased by 60% in 2022 for industry to US$14.5/kWh and by 36% for households to US$19.6/kWh. They decreased between 2019 and 2021, by 23%/year on average for industry and by 19%/year for households.

Kenya has made remarkable progress in the energy sector, particularly in the development of renewable energy sources such as geothermal and wind power. These investments have contributed to a decline in electricity prices, making it one of the most affordable countries for electricity in Africa. The government’s commitment to expanding access to electricity and promoting renewable energy has been instrumental in driving down costs.

4. Tanzania

Tanzania has made significant strides in improving its energy infrastructure, which has resulted in affordable electricity prices. The country has invested in diverse energy sources, including natural gas, hydroelectric power, and solar energy. These efforts have not only made electricity more accessible to its citizens but have also contributed to the overall affordability of electricity in the country.

5. Zambia

Zambia is known for its extensive hydropower resources, which have helped keep electricity prices affordable. The country has made substantial investments in the development of its hydropower infrastructure, leading to a significant reduction in electricity costs. With ongoing efforts to diversify its energy mix and improve energy efficiency, Zambia is expected to maintain its position as one of the African countries with affordable electricity prices.

6. Rwanda

Rwanda has made remarkable progress in electrification, with a focus on renewable energy sources. The country has invested in solar energy, hydroelectric power, and methane gas, which have contributed to affordable electricity prices. Rwanda’s commitment to renewable energy and its efforts to improve energy access have made electricity more affordable for its citizens.

7. Ghana

As of March 2023, the price of electricity used in households in Ghana amounted to 1.15 Ghanaian cedi, some 0.096 U.S. dollars, per kilowatt hour. On the other hand, industrial electrical energy was priced at around 1.32 Ghanaian cedi per kilowatt hour, roughly 0.11 U.S. dollars

Ghana has been actively working to improve its energy sector, with a focus on diversifying its energy sources. The country has made significant investments in renewable energy, particularly in solar and wind power. These efforts have resulted in affordable electricity prices, making Ghana one of the African countries with the cheapest electricity.

8. Senegal

The average electricity price in Senegal has dropped from 188.4 USD/MWh in 2021 to 167.53 USD/MWh in 2022. Since 2017, the average electricity price in Senegal has fluctuated between 167.53 USD/MWh (2022) and 188.4 USD/MWh (2021).

Senegal has made substantial progress in expanding access to electricity and reducing costs. The country has invested in various energy sources, including solar, wind, and natural gas. These investments have contributed to the affordability of electricity in Senegal, making it one of the top African countries with cheap electricity.

9. Mozambique

Electricity Tariffs ; Class of Consumers. Sale Price ; Class of Consumers · (Mt/kWh). (Mt/kW) ; Major Cons. LV (GCBT). 5.74. 441.12 ; Medium Voltage (MV). 4.78.

Mozambique has vast natural gas reserves, which have played a significant role in driving down electricity prices. The country has invested in natural gas-based power plants, reducing its reliance on costly imported fuels. Mozambique’s focus on utilizing its natural resources has made electricity more affordable for its citizens.

10. South Africa

After a rise between 2017 and 2019, electricity prices increased by around 25% in 2021 and stabilised in 2022 to US$6.5c/kWh and US$11.0c/kWh for industry and households, respectively.

South Africa, despite having a more developed and complex energy market compared to other African countries on this list, still offers relatively affordable electricity prices. The country has a diverse energy mix, including coal, natural gas, nuclear, and renewable energy sources. South Africa’s efforts to diversify its energy sources and improve energy efficiency have contributed to the affordability of electricity.

Conclusion

Access to affordable electricity is crucial for economic growth and development in Africa. The top 10 African countries mentioned in this article have made significant progress in improving access to electricity and reducing costs. Through investments in renewable energy sources, such as hydroelectric, solar, and wind power, these countries have managed to provide affordable electricity to their citizens. Continued efforts to expand energy infrastructure and promote renewable energy will further enhance affordability and accessibility in the coming years.