The EAC Petroleum Regulatory Index (PRI) Report 2024

In recent years, the African continent has increasingly focused on assessing the efficiency of regulatory authorities overseeing the electricity sector, spearheaded by the African Development Bank. This initiative encompasses three core components:

1. Regulatory Governance: This aspect analyzes the frameworks, both explicit and implicit, that form the foundation of regulatory authorities, reflecting the essence and design of the primary legislation that established them.
2. Regulatory Substance Index: This measures the effectiveness of regulatory authorities in executing their mandates. It assesses the depth and breadth of oversight within the energy sector, including compliance with policies and practices.
3. Regulatory Outcome Index: This index evaluates the tangible results of regulatory actions, although it is subject to external influences such as government interventions, volatility in global fuel prices, and unforeseen global events like pandemics.

While substantial focus has been placed on electricity regulation, the need for equivalent oversight in the petroleum sector has become increasingly apparent. Many governments recognise the importance of establishing dedicated Petroleum Upstream Regulatory Authorities to manage the complexities of the petroleum subsector. Historically, regulation has often been housed within National Oil Companies or respective ministries overseeing petroleum and mineral resources. However, the East African Community (EAC) Partner States have created specialized regulatory institutions tasked with overseeing the petroleum sector more effectively. This development is crucial, particularly as the region has recently discovered significant petroleum resources, which have the potential to drive substantial economic growth.