Several African countries continue to rank among those with the lowest electricity tariffs globally, driven largely by government subsidies, regulated pricing structures, and access to relatively low-cost energy sources such as hydropower and domestic natural gas.
However, electricity prices across the continent vary widely, reflecting differences in energy mix, generation capacity, infrastructure quality, and national power-sector policies.
According to data from Global Petrol Prices, last updated in the fourth quarter (Q4) of 2025, Ethiopia recorded the lowest electricity tariffs in Africa for both households and businesses.
The dataset compares average residential and commercial electricity prices across African countries, highlighting sharp contrasts in how nations price power for consumers and businesses.
Countries ranking at the top of the list including Ethiopia, Sudan, and Angola benefit significantly from hydropower-dominated energy systems, which help keep generation costs low. Ethiopia’s sustained investment in large-scale hydroelectric projects has enabled it to maintain exceptionally low electricity prices, particularly for households.
In Algeria, Egypt, and Nigeria, electricity prices remain relatively low due to a combination of government subsidies, regulated tariffs, and access to domestic fuel sources. However, these artificially low tariffs have placed financial pressure on power utilities in several countries, constraining investment and affecting supply reliability.
The data also shows notable disparities between residential and commercial tariffs. While countries such as Angola and Algeria offer cheaper electricity to businesses than to households, others impose higher commercial rates to cross-subsidise residential consumers.
The rankings are based on data from Global Petrol Prices, which tracks average national retail energy prices across more than 150 countries and over 250 cities worldwide. The figures reflect average household and business electricity tariffs across Africa as of Q4 2025.
Source: Nairametrics