A spatial analysis of the effect of regulatory regimes on service delivery in the electricity supply industry in sub-Saharan Africa

The aim of this paper is to analyze the spatial effect of regulatory regimes on the supply of electricity service in Sub-Saharan Africa. A spatial Durbin model (SDM) is used on data from 40 countries between 2000 and 2022. Our assessment focuses on how regulatory regimes affect energy losses, demand coverage and generation from renewable energy resources. The results show that regulatory regimes have a negative non-spatial effect on energy losses. Spatially, however, they have a positive effect on operational efficiency. Regulatory regimes negatively affect demand coverage and renewable energy production across countries. Spatial interdependence of electricity supply in Sub-Saharan African countries is observed. Indeed, an improvement in electricity supply indicators in one country leads to an improvement in the same indicator in the neighboring country. Further, the quality of national regulation has a positive non-spatial effect on energy losses and renewable energies. Estimation by regional sub-block, accounting for heterogeneity, reveals mixed effects of regulatory regimes on service provision in Southern and West Africa, despite experienced regional electricity regulators. The study recommends that public institutions should establish cooperative regimes, and strengthen regional regulatory authorities should be set up in regional sub-blocks.