Sustainable Energy Access and Its Role in Enhancing Africa’s Manufacturing Capacity

This paper investigates the impact of sustainable energy access on manufacturing output across selected African countries using panel data analysis comprising 150 observations from 2013 to 2023. The analysis utilised Fixed Effects and Random Effects models in conjunction with the Hausman test. The findings revealed that improved access to sustainable and reliable energy significantly enhances manufacturing value added as a share of GDP, confirming energy’s essential role in industrial productivity. Electricity access similarly demonstrates a positive and significant effect on manufacturing capacity, emphasizing the importance of dependable power supply for industrial growth. However, renewable energy investment, though positively related, shows no statistically significant impact on manufacturing output, reflecting the nascent stage of renewable infrastructure development in the region. Additionally, higher GDP per capita and foreign direct investment contribute positively to manufacturing performance, highlighting the role of economic development and investment climate in supporting industrial expansion. These results underscore the urgent need for targeted policies to improve energy infrastructure, particularly in sustainable energy, to foster industrial growth, economic diversification, and long-term development in Africa. The study contributes valuable insights for policymakers aiming to accelerate Africa’s industrial transformation through enhanced energy access.