Restructuring Electric Power System to Reduce Shortage of Electric Power and Increase GDP in Togo Open Access

Current management and technical structures of the electric power system in Togo have shown their limits. Togo continues to suffer from limited access to electric power and endemic electric power shortages resulting in the slow-down of the country’s socio-economic development. For over 43 years, the electric power generation in Togo increased only twofold while consumption rose nine-fold. On average, an annual per capita consumption of electricity in Togo is significantly below the average in sub-Saharan African countries and extremely low compared to the average in the United States. To determine whether undertaking the process of restructuring the electric power system in Togo would help to remedy the power sector crisis, this praxis attempts to conduct a comparative analysis based on institutional and economic classifications of the World Bank and Transparency International between Togo and 13 selected non-OECD countries with experience in restructuring electric power systems to establish similarities. The comparison was supported by the results of econometric analyses of the impacts of the restructuring of the electric power system on technical and socio-economic indicators such as GDP per capita, shortage of electricity, electricity access level, and foreign investment in the electric power system in the examined countries. The comparative results of the countries that group with Togo suggested that restructuring could be beneficial to Togo, especially in economic and welfare development. Although technical gains such as the reduction of power shortages were not too conclusive, it is tempting to infer that restructuring could, in general, help Togo to attract foreign investors in the electric power sector.

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