Angola Ends Monopoly of State Electricity Company, Allowing Private Firms to Sell Power from 2026
Angola will allow private companies to begin selling electricity in the country starting next year, ending the monopoly held by the National Electricity Distribution Company (ENDE), announced the Minister of Energy and Water, João Baptista Borges.
The move is aimed at addressing high operational costs and supporting the rapid expansion of electricity networks in rural areas, the minister explained during a visit to a photovoltaic solar park.
The Angolan electricity sector is structured into four segments: production, transmission, distribution, and commercialization. Currently, ENDE holds a single concession covering both distribution and commercialization.
This requires the company to operate in all localities, regardless of consumption levels, which can result in costs that far exceed revenue, particularly in rural regions.
Under the new model, the government plans to grant concessions for local assets, enabling private companies to manage commercialization and operational functions.
“What we do is hand over the assets of the distribution networks, the metering and billing system, and they handle the commercialization of energy, make new connections, and respond to emergencies, repairs, and breakdowns,” the minister explained. In return, companies will pay a fee for using ENDE’s infrastructure.
When asked about the economic sustainability of the plan, given tariff limits and low purchasing power, João Baptista Borges emphasized that operators will not face large initial investments. “They do not have significant investment costs because they receive the networks already sized for the consumers they will serve. With reduced costs, it becomes an attractive business opportunity,” he added.
The electricity tariff will remain uniform across the country, with any regional cost differences compensated through cross-subsidization. The government is currently finalizing the necessary regulations to implement the new model.
Regarding the timeline, the minister was clear: “The process cannot extend beyond next year due to the dynamics of infrastructure growth, which could create increasing sustainability challenges.”
The market opening will be preceded by extensive consultations. “We are establishing a Sector Reform Committee that will include all perspectives from local institutions, associations, ministries, and individuals to discuss the model, and then we will implement it throughout next year,” he concluded.
This initiative follows amendments to the General Electricity Law under Law No. 6/25 of July 23, which legally allows private entities to commercialize electricity, subject to licensing and oversight by the sector’s regulatory authority.
