Disgraceful !!!! Electricity Crisis Cripples Businesses
Freetown, 18 November 2025
Sierra Leone’s worsening electricity crisis has moved beyond inconvenience and is now undermining the very foundation of the country’s economic recovery. New findings from the World Bank’s Sierra Leone Economic Update (October 2025) show that unreliable power supply, soaring operational costs, and structural weaknesses across the energy sector have created conditions that many businesses describe as “unsustainable” and “crippling.”
Across the country, more than 64 percent of the population still live without electricity. But for those connected to the national grid, life isn’t much easier. Daily operations are routinely disrupted by long blackouts, with firms reporting an average of four outages every month, each lasting close to nine hours. These prolonged disruptions translate into a staggering 16 percent monthly revenue loss, pushing businesses to rely heavily on private generators, which are now powering more than a quarter of all electricity consumed in the formal economy.
The generator boom has become a survival strategy rather than a luxury. As of 2025, 62 percent of firms own and operate generators, absorbing fuel and maintenance costs that continue to rise. Small businesses struggle the most, with bakery owners, metal workshops, tailors, and cold storage operators spending more on fuel than on staff salaries. Many say electricity expenses now determine whether they stay afloat or shut down.
Even the country’s largest companies have taken matters into their own hands. Kingho Mining Limited has built a 49-megawatt thermal power plant solely to secure its operations, producing 44 megawatt hours of electricity daily, while supporting grid stability in its surrounding communities. Other major industries are exploring similar off-grid power investments, a move that reflects diminishing confidence in the national electricity system.
Sierra Leone’s total installed generation capacity stands at 235 megawatts, but only 159 megawatts are actually available due to persistent maintenance delays, fuel shortages, and seasonal limits. Hydropower, once considered the backbone of national electricity, collapses to less than 10 percent output during the dry season. The country now relies on a fragile mix of sources, including 27 megawatts from the CLSG Interconnector, 33 megawatts from heavy-fuel-oil plants, 30 to 60 megawatts from private seasonal barges, and 11 megawatts from solar installations. Despite renewables contributing 45 percent of available supply, higher than the Sub-Saharan African average, the system remains vulnerable due to its dependence on imported fuel.
The Electricity Distribution and Supply Authority (EDSA) faces what analysts call a “structural crisis.” Half of the electricity produced or purchased is lost through technical leakages and commercial theft, while only 76 percent of billed units are actually collected. In practice, this means EDSA receives revenue for only three out of every ten units of electricity it buys. The government is forced to bridge the gap through subsidies, spending over US$36 million in 2023 alone, equivalent to 7 percent of the national budget, an amount experts warn is financially unsustainable.
Regionally, Sierra Leone ranks among the lowest performers in electricity regulation and service delivery. A 2024 assessment placed the country at a score of 14 for regulation and 21 for actual service delivery, far behind Rwanda, Togo, and The Gambia, all of which score above 70. Similar weaknesses plague water and internet service delivery, reinforcing the perception that Sierra Leone’s public utilities remain structurally underdeveloped.
These challenges are reflected in the country’s FY2026 Millennium Challenge Corporation (MCC) scorecard, where Sierra Leone failed 13 of 22 indicators, including critical aspects of economic freedom, infrastructure, and governance. With a population of 8.6 million and a Gross National Income per capita of just US$840, the country continues to struggle with energy deficits that block industrialization, weaken job creation, and fuel business closures.
Economic experts warn that without urgent reform; ranging from reducing technical losses and strengthening regulation to modernizing the grid and scaling up renewable investments—the energy crisis will continue to drain national competitiveness. For now, businesses remain trapped in a cycle of high costs and low reliability, hoping for a breakthrough that remains long overdue.
