Working on World Bank energy projects in Burundi and watching improved access to electricity unfold, has given me a sense of optimism about the future of the country. Needed reforms are starting to take shape, and I believe that with continued commitment and collaboration among the government, private sector, and development partners, if the right strategies are put in place, Burundi can harness the power of its energy sector to build a brighter and more prosperous future for its people.
In a context of the World Bank partnering with the African Development Bank (AfDB) and others to provide access to electricity to 300 million people in Sub-Saharan Africa by 2030 – known as Mission 300, we have been closely watching some changes taking place in Burundi’s power sector: New assets producing electricity are being commissioned; A new electricity law promises to reshape the power sector landscape; The willingness of the Government of Burundi to call for more private sector participation. For a country where only 12% of the population has access to electricity, I think these changes are a much-needed catalyst for economic and social development.
As I’ve been following Burundi’s progress, even if some challenges need to be addressed, it’s clear that the country has taken a bold step forward with the ambitious target of providing universal electricity access by 2030. The government has also expressed interest in joining the National Energy Compact roadmap to accelerate the pace of electrification. However, this big goal needs to be supported by structural reforms - that are currently lacking - and strong government ownership.
Opportunities and challenges
The new electricity law, passed in March 2024, includes some major changes which need to be implemented but could have a lasting impact on the sector. Here are a few key points that stand out to me:
- Independent Oversight: The need for an independent regulatory authority to oversee the electricity sector has been emphasized. We believe this is a critical step in making the system more transparent and accountable, which should inspire investor confidence and protect consumers.
- Private Sector Investment: One of the most exciting aspects of this law is its encouragement of private sector involvement. By opening the door to private companies, the government is hoping to improve efficiency and expand access to electricity, especially in underserved areas like rural and remote communities. However, private sector participation should be aligned with least cost generation, transmission, and distribution plans.
- Focus on Rural Electrification: What really caught my attention is the law’s specific focus on electrifying rural areas. This is where the real challenge lies. It’s inspiring to see how projects like SOLEIL-Nyakiriza are already bringing decentralized electricity solutions to these areas. A subsidy fund FESEC is supporting private companies to provide access to off grid electricity to 70,000 households and to clean cooking solutions to 300,000 households. Also, 400 schools and 400 health centers are being electrified.
But as promising as these changes are, we have also seen that there are a few challenges that need to be addressed if Burundi is to fully realize the benefits of these reforms.
- Building Institutional Capacity: The ability of regulatory authority is a crucial piece of the puzzle, but it will need to be equipped with the right resources and expertise to function effectively. I’ve seen firsthand how important it is for regulatory bodies to have the capacity to manage a growing sector. Without this, there’s a risk that investor confidence could falter.
- Financing the Future and Sustaining the Sector: One of the most pressing issues is the need for financing. Burundi will need substantial investment—around $ 3 billion—to meet its electrification targets. Securing that kind of funding isn’t easy, but with the right policies and partnerships, the necessary capital could flow in. It also implies measures to ensure the financial sustainability of the energy sector. Adjusting electricity tariffs, introducing a social tariff for vulnerable populations, and making sure the sector is financially viable are all essential pieces of the puzzle.
- Improving REGIDESO: Another area that needs attention is REGIDESO, the state-owned utility. It’s clear that REGIDESO’s operational and financial challenges need to be addressed faster if it’s going to play a key role in this transformation. I’ve seen progress with projects like the Jiji & Mulembwe Hydropower Project, but more reforms are needed to ensure that REGIDESO can effectively and sustainably manage the energy system.
The role of private sector participation
The growing role of the private sector will be critical in this transformation. I’ve seen how private companies, like Weza Power, Gigawatt and Hydroneo, are stepping up to bring not just capital but also expertise and innovation to the table.
One of the standout initiatives is the interim public-private partnership (PPP) agreement signed in December 2023 between the government and Anzana Electric Group. This partnership is allowing Weza Power to launch a pilot project that will connect 45,000 households, businesses, and industries over the next two years. It’s an exciting move that will not only improve access to electricity but also introduce new technologies that could make the grid more efficient and reliable.
I find it inspiring that this collaboration will create new jobs and economic opportunities. The demand for skilled workers will grow as these projects move forward, and it’s great to see the World Bank-funded ASCENT Burundi project supporting the development of the local workforce through the rehabilitation of the national training center.
But we all know that for this to be successful, the reforms need to continue. REGIDESO has to become a more reliable partner for private investors, and the regulatory authority, AREEN, needs to stay strong and independent to ensure the sector functions as it should.
The road ahead won’t be easy, but Burundi has the potential to reach it’s ambitious energy goals and I’m excited to see where this journey takes the country—and the millions of Burundians who will benefit from these changes.
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