March 8, 2023, Mogadishu, Somalia – In an historic ceremony at Villa Somalia, the President of the Federal Republic of Somalia Dr. Hassan Sheikh Mohamud signed into law the National Electricity Act, marking a new era for the nation’s energy sector. The approval of the Electricity Act represents a major milestone in Somalia’s journey towards sustainable development, economic growth, and increased access to electricity for all Somalis. Both the lower and upper houses of federal parliament of Somalia prior approved the electricity act.

The Electricity Act lays the foundation for a comprehensive overhaul of the Somali electricity industry. It is poised to significantly transform how energy is generated, transmitted, distributed, and consumed, ensuring that electricity becomes more reliable, affordable, and accessible to people and businesses across the nation.

“This is more than a piece of legislation; it is a beacon of light for every Somali citizen,” said the President during the signing ceremony. “

This Act will catalyze the growth of our economy, modernize our electricity industry, address the critical challenge in the energy sector and revive the nations industrialization and more importantly, empower our communities.”

The Act’s passage comes at a crucial time when less than 45% of the Somali population has access to electricity, one of the lowest rates in the world. Addressing the nation’s electricity challenges through this legal framework will attract investment, foster competition, and encourage innovation within the energy sector.

The legislation introduces measures for:

• Establishing the National Electricity Authority, which will serve as the regulatory body to operationalize the Act, ensuring compliance, and promoting the use of renewable energy sources.
• Encouraging private sector participation and foreign investment by providing a clear and stable legal environment.
• Implementing national standards for service quality and environmental protection.
• Developing rural electrification programs to bridge the gap between urban and rural communities.

“With this Act, we are not only turning on the lights but also ensuring that the electricity is sustainable, cost-effective, and beneficial to our environment,” the President added.

The Act will fast track the establishment of The National Electricity Authority (NEA) which will operationalize the approved electricity act and ensure that its provisions are enacted efficiently and transparently. The NEA will be instrumental in licensing electricity service providers, setting tariffs, managing subsidies, and spearheading rural electrification initiatives.

In conclusion, the signing of the Electricity Act is a decisive step towards achieving the Federal Republic of Somalia’s vision of a fully electrified nation. The Act will ensure that the Somali people enjoy the socio-economic benefits of a stable and sustainable electricity supply. The government remains committed to the promise of reform and development, as we believe that access to electricity is not a luxury but a fundamental right for all our citizens.