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.
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.
- 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.
