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Developing Smart Infrastructure in Africa – The case for Regulation

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Governments establish regulatory authorities to address specific impediments to utility sector performance and growth. Regulatory authorities are established to primarily act as lead agencies in building viable utility sectors to drive the attainment of national policies and development goals. Although the specific motivations may vary from one country to another, some utility sector ills that prompt the establishment of regulatory agencies can be generalized.
More specifically, regulatory agencies are established to implement government policy that aims to improve sector performance relative to no regulation. This means that regulators generally focus on ensuring service availability and system expansion, improving cost efficiency, attracting capital to the sector, improving sector stability, and generating government revenues from licenses and concessions, among other functions.
Therefore, in summary, countries almost always establish regulatory agencies in order to:

  1. enhance Sector Performance
  2. protect Public Interest
  3. enhance Consumer Protection
  4. improve Cost Efficiency