The role of energy poverty on economic growth in sub-Saharan African countries

Abstract

Appreciating firstly the importance of access to basic services and secondly, the lack of infrastructure particularly in the energy domain in the African continent, the aim of this paper is to examine empirically the role of energy poverty to economic growth in the sub-Saharan region. The findings aim to assist in proposing directions to policy makers for the implications of lack of access to energy as well as to relevant organisations to aid with deployment of sound policies and efforts towards well-functioning energy options. The empirical analysis is based on fixed effects panel data estimation as well as a Generalized Method of Moments (GMM) estimation including of fourteen sub-Saharan African countries (Benin, Botswana, Cameroon, Congo – Republic, Kenya, Mauritius, Mozambique, Namibia, Nigeria, Senegal, South Africa, Swaziland (Eswatini), Tanzania and Togo) for the period from 1990 to 2016. The empirical investigation found that access to electricity is a positive contributor to this group of countries’ economic growth, with relatively low impact on a direct basis. This study provides evidence for the direct effect and also, raises the issue of all the health, education, income generating impact that access to electricity will provide to future generations.