Publication : Quality performance gaps and minimal electricity losses in East Africa by Axel Gautier, René Nsabimana , Barnabé Walheer

Abstract : The electricity sector in East Africa is characterized by high levels of electricity losses. The literature has
extensively focused on investments and policy reforms that can potentially reduce losses. In this paper, we
follow another approach by nonparametrically estimating the minimal losses given the actual inputs, outputs
and electricity generation process. Minimal losses are then compared to actual losses to construct quality
performance indicators. Using a tailored database for six East African countries over 10 years, we show that
electricity losses could be reduced by 8%, representing savings of approximately $60 million per year.

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