A potential synergy exists among human development, green electricity generation (GRE), and sustainable energy foreign direct investment (SEFDI) in alleviating electricity poverty in sub-Saharan Africa (SSA), though empirical evidence remains scarce. This multidimensional challenge is exacerbated by a persistent green finance gap that weakens the region’s economic performance and social stability, motivating actionable policy solutions. While expanding green power and improving living standards can help, SEFDI remains crucial by supplying capital, advanced technologies, and R&D expertise. Yet the nexus among SEFDI, GRE, and the Human Development Index (HDI) in SSA remains unexplored. This study addresses this gap using a novel, not publicly accessible dataset on SEFDI (2003–2021) and the ARDL-PMG model. Results show GRE and GDP per capita significantly boost SEFDI in the long run, while HDI improvements are less influential. Causality analysis reveals a bidirectional relationship between SEFDI and GRE. Findings remain robust across multiple tests, with implications for mitigating electricity poverty in SSA.
Ahmed Rashed (Mon,) studied this question.