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Several African countries continue to rank among those with the lowest electricity tariffs globally, largely due to government subsidies, regulated pricing regimes, and access to low-cost energy sources such as hydropower and natural gas.
However, electricity prices across the continent vary significantly, reflecting differences in generation capacity, fuel mix, infrastructure quality, and national energy policies.
According to data from Global Petrol Prices, last updated in the fourth quarter (Q4) of 2025, Ethiopia recorded the lowest electricity prices in Africa for both households and businesses.
The dataset compares average residential (household) and commercial (business) electricity tariffs across African countries.
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Countries at the top of the ranking—particularly Ethiopia, Sudan, and Angola—benefit from strong reliance on hydropower, which significantly lowers generation costs. Ethiopia’s sustained investment in large-scale hydroelectric projects has enabled it to maintain exceptionally low tariffs, especially for residential consumers.
In Algeria, Egypt, and Nigeria, electricity prices are kept relatively low through a combination of government subsidies, domestic fuel availability, and regulated tariffs. However, in several of these countries, artificially low prices have placed financial strain on power utilities, limiting investment and affecting supply reliability.
The data also highlights marked differences between residential and commercial tariffs. While countries such as Angola and Algeria offer cheaper electricity to businesses than households, others impose higher commercial rates to cross-subsidise residential consumers.
The rankings are based on data from Global Petrol Prices, a widely referenced database that tracks average national retail energy prices across more than 150 countries and over 250 cities worldwide. The figures reflect average household and business electricity prices across African countries as of Q4 2025.
Cameroon
- Residential: USD 0.084/kWh
- Business: USD 0.177/kWh
Cameroon records one of the widest gaps between household and business electricity tariffs in Africa. While residential users benefit from relatively moderate prices, commercial customers face significantly higher costs, reflecting cross-subsidisation and the higher cost of providing reliable supply to businesses.
As of November 2024, electricity tariffs for low-voltage customers were tiered, with residential rates starting at 50 CFA francs per kWh for low consumption (≤110 kWh) and rising to 99 CFA francs for higher usage. Business tariffs average around 105.9 CFA francs per kWh, following tariff harmonisation aimed at reducing subsidies.
Tunisia
- Residential: USD 0.067/kWh
- Business: USD 0.115/kWh
Tunisia maintains some of the lowest electricity prices in North Africa, supported by state regulation and subsidies. However, fiscal pressures and rising energy import costs have gradually pushed tariffs higher, particularly for commercial users.
By mid-2025, residential tariffs averaged about TND 0.199 per kWh (approximately USD 0.069), while business rates stood at around TND 0.352 per kWh (USD 0.122), inclusive of taxes. High-consumption households—those using more than 500 kWh per month—face higher rates of up to 350 millimes per kWh following subsidy reforms.
Democratic Republic of Congo (DR Congo)
- Residential: USD 0.064/kWh
- Business: USD 0.075/kWh
Despite possessing vast hydropower resources, including the Inga dams, electricity prices in DR Congo remain low, mainly in urban areas. Weak grid infrastructure and limited access continue to constrain the broader economic benefits of these low tariffs.
In December 2025, authorities announced plans to adjust long-standing electricity and water tariffs that have been set below production costs. National utilities SNEL and REGIDESO have warned that existing pricing structures undermine service reliability and infrastructure investment.
Algeria
- Residential: USD 0.041/kWh
- Business: USD 0.035/kWh
Algeria’s abundant natural gas reserves enable it to maintain heavily subsidised electricity prices. Notably, commercial tariffs are cheaper than residential rates, reflecting government efforts to support industrial growth.
While prices remain low, authorities have signalled potential tariff restructuring to improve economic efficiency. At the same time, Algeria is developing large-scale solar projects, with some new plants targeting generation costs as low as 6.9 US cents per kWh.
Nigeria
- Residential: USD 0.036/kWh
- Business: USD 0.050/kWh
Nigeria’s electricity tariffs are relatively low compared with many African peers, supported by regulated pricing and partial subsidies. However, unreliable supply and frequent outages force households and businesses to rely heavily on costly alternatives such as diesel generators.
Electricity tariffs are structured under a Service-Based Tariff (SBT) system, which categorises customers into Bands A–E based on hours of daily supply.
As of mid-2024, Band A customers (20+ hours of supply) paid the highest rates—around ₦209.50 per kWh—while tariffs for Bands B–E remained unchanged. Rates vary by distribution company and location, raising concerns about equity and affordability.
Egypt
- Residential: USD 0.024/kWh
- Business: USD 0.037/kWh
Egypt has significantly expanded electricity generation capacity through gas-fired plants and renewable energy investments. While electricity remains affordable, the government has been gradually reducing subsidies as part of broader economic reforms.
By mid-2025, residential tariffs ranged from approximately EGP 1.07 to EGP 2.30 per kWh, depending on consumption levels. The government plans further tariff increases of 15–25% in early 2026 to ease fiscal pressures, following earlier hikes in 2024 and 2025. Despite reforms, Egypt allocated about USD 1.6 billion to electricity subsidies in FY2025.
Zambia
- Residential: USD 0.023/kWh
- Business: USD 0.037/kWh
Zambia’s low electricity prices are largely attributable to its heavy reliance on hydropower, which accounts for about 90% of generation. While this keeps costs low, recurring droughts have exposed vulnerabilities in supply and occasionally forced reliance on more expensive alternatives.
Despite recent tariff adjustments, Zambia continues to rank among the lowest-cost electricity markets in Africa.
Angola
- Residential: USD 0.016/kWh
- Business: USD 0.013/kWh
Angola offers some of the cheapest electricity prices in Africa, particularly for businesses. Heavy government subsidies and expanding hydropower capacity have helped sustain low tariffs, although access and reliability remain uneven nationwide.
While the government has gradually reduced subsidies—including a major cut in 2019—tariff adjustments have continued. In May 2025, electricity prices for high-capacity, three-phase domestic users rose to 14.74 kwanzas per kWh.
Sudan
- Residential: USD 0.013/kWh
- Business: USD 0.038/kWh
Sudan’s residential electricity tariffs are among the lowest on the continent, though commercial users pay significantly higher rates. Despite low prices, the country faces severe power shortages due to an unreliable, heavily subsidised grid.
As a result, households and businesses often depend on expensive and inefficient diesel generators, undermining the benefits of low official tariffs.
Ethiopia
- Residential: USD 0.006/kWh
- Business: USD 0.019/kWh
Ethiopia ranks as the African country with the cheapest electricity prices. Sustained investment in large-scale hydropower projects has enabled exceptionally low tariffs for both households and businesses, making electricity a key pillar of the country’s industrialisation strategy.
The Ethiopian Electric Utility (EEU) reports that households pay about USD 0.005 per kWh—among the lowest rates globally. While recent tariff adjustments have sparked public concern, the utility maintains that Ethiopia continues to offer the cheapest electricity prices in Africa.
