Under-pricing of electricity is prevalent in nearly 70 percent of all sub-Saharan African countries. Consequently, the electricity sectors are financially unviable and unable to maintain or expand the electricity infrastructure, leading to unendurable power deficits and outages in the region. The economic costs of under-pricing electricity services are wide-range: from widening fiscal deficits; to diverting budgets from more important social investments such as education or health.
The household effects of very large electricity tariff hikes in Zambia
Research Brief 181