Special Session 2 — Energy Subsidy Reform: Building Fiscal Space While Protecting the Vulnerable

Energy subsidies remain a major fiscal burden across many African countries, especially during external shocks that drive up fuel prices. Untargeted subsidies distort markets, encourage inefficient consumption, disproportionately benefit higher-income households, and divert scarce resources from energy access, health, education, social protection, and renewables. This session reviews African subsidy-reform experience. Hosted by the ACBF Strengthening PFM Analysis, Research, and Institutions (SPARI) Program.

Moderated by Dr. Abraham Rugo Muriu (Bajeti Hub), framed by Dr. Abbi Kedir (AERC), with Dr. Eldah Onsomu (KIPPRA), Dr. Balew Demissie (Policy Studies Institute, Ethiopia), Mr. Amadou Cheick Kanoute (CICODEV Africa), and representatives from a reforming ministry of finance, an energy regulator, and the IMF/World Bank ESMAP.

Objective: review reform experiences, identify implementation challenges and success factors, and explore strategies to improve fiscal sustainability while protecting the vulnerable. Expected outcomes: shared lessons and good practices; common challenges identified (political economy, social protection gaps, communication); recommendations for redirecting subsidy savings toward access, renewables and other priorities, summarized in a short policy note.