Electricity privatizations in Sahel: A U-turn?

This paper examines the process of privatization of electrical utilities for the country members of CILLS (Burkina Faso, Cape Verde, The Gambia, Guinea-Bissau, Mali, Mauritania, Niger, Chad and Senegal). These Sahelian countries, the majority of whom rank at the bottom positions of the HDI and present extremely low access rates to modern energy services, together started a process of energy sector reform and energy utility privatization in the 1990s. The reforms, endorsed by the International Financial Institutions, focused on the privatization of the electrical utilities, and encountered many difficulties. The objective of this article is to analyze what happened in each of these nine countries and to understand the reasons that led to a general halt or reversal of the process. The analysis is first introduced by a brief examination of regional energy situations and of the international context in which the reforms took place; this includes the policy guidelines introduced by the IFIs and the investment decisions of energy corporations. We analyze management processes and ownership changes for each country. Finally, the article identifies the problems encountered as a result of reform design and the interaction of behaviors between the governments, the International Corporations and the IFIs; lastly, we draw conclusions.