As of March 2024, businesses in Sierra Leone face the highest electricity costs in Africa, paying approximately $0.342 per kilowatt-hour, according to a report by Globalpetrolprices. This rate surpasses those of Ivory Coast and Burkina Faso, where electricity prices for businesses rank second and third highest on the continent, at $0.227 and $0.210 per kilowatt-hour, respectively.

The report highlights the significant variation in electricity prices across Africa, influenced by factors such as the availability of resources, the efficiency of power generation and distribution, government subsidies, and the reliance on imported energy. These factors have a profound impact on the cost of doing business in different countries, with electricity being a critical component of productivity, creativity, and growth.

In a broader context, the global average electricity price stands at USD 0.152 per kWh for residential users and USD 0.148 per kWh for businesses. Europe records the highest residential electricity prices at USD 0.228 per kWh, while Asia offers the lowest average at USD 0.082 per kWh. Other regions fall in between, with Africa at USD 0.119, Australia at USD 0.236, North America at USD 0.142, and South America at USD 0.185.

For businesses, Europe also leads with the highest electricity prices at USD 0.195 per kWh, while Africa and Asia share the lowest rates at USD 0.108 and USD 0.082 per kWh, respectively. Business electricity prices on other continents are USD 0.205 in Australia, USD 0.161 in North America, and USD 0.189 in South America.

The top 10 African countries with the highest electricity prices for businesses are:

This report has significant implications for businesses operating in Africa, as high electricity costs can be a major obstacle to growth and profitability. As the continent continues to develop and industrialize, addressing these disparities in electricity prices will be crucial for creating a more level playing field for businesses of all sizes.

In conclusion, the report by Globalpetrolprices provides valuable insights into the complex landscape of electricity prices in Africa, highlighting the need for policymakers and business leaders to work together to create a more sustainable and affordable energy environment for businesses across the continent.