Kenya, Zambia, and South Africa Lead Charge in Africa’s Electricity Market Reforms
Kenya, Zambia, and South Africa are accelerating power sector reforms, transitioning from state-controlled utility models to open access electricity markets.
These changes aim to improve reliability, attract private investment, and reduce energy costs across a region long burdened by power deficits.
In Kenya, the Energy Act of 2019 and the newly published Electricity Market, Bulk Supply and Open Access Regulations 2024 allow independent power producers (IPPs) to sell directly to large consumers or private vendors through a wheeling process.
Consumers using at least 1 MVA can bypass the state utility, Kenya Power. While the legal framework is advanced, gaps in infrastructure and system operation remain.
Zambia is taking a similar path. The Electricity Act of 2019 and Open Access Regulations 2024 support a move toward competitive markets.
Though ZESCO still dominates, efforts are underway to unbundle its roles. Challenges persist, including limited transmission capacity and unclear dispatch protocols.
South Africa remains largely under Eskom’s control but is progressing under the Electricity Regulation Amendment Act.
The draft Market Code, proposed by the National Transmission Company, envisions a competitive multi-market system by 2031, with spot, day-ahead, and intraday trading.
A “first-ready, first-served” model for grid access has been adopted to prioritise viable projects.
Despite progress, all three countries face shared obstacles: weak infrastructure, regulatory ambiguity, and a lack of clear consumer benefit frameworks.
While South Africa has wheeling agreements in place, Kenya and Zambia are still finalising their systems.
Experts warn that without modern grid infrastructure and policy clarity, market liberalisation could introduce new risks.
Recent blackouts in Kenya and strained networks in Zambia highlight the urgency of investment.
“Open access reforms are a necessary evolution,” note energy experts Alexandra Felekis, Bwalya Chilufya-Musonda, and Edwin Baru of Bowmans.
“But for these markets to truly work, there must be a shared commitment to transparency, investment, and inclusive participation.”
