New energy-rich or still energy-poor? Evidence from selected African countries

Traditional bioenergy, used in many African nations, is not recognized as a renewable or sustainable energy source. Some countries on the continent are officially leading the way in achieving SDG7, thanks to this type of energy. As of 2020, some African nations had a relatively high proportion of renewable energy (RE) in their primary energy supply, contributing to their enhanced energy self-sufficiency. In this study, 15 low- and lower-middle-income African countries are selected, and the elements that statistically significantly affect high shares of RE supply from 2000 to 2022 are scrutinized. For this purpose, second-generation panel data methods, CS-ARDL, are used to assess the effects of sustainability, economic growth, and energy equity indicators on the share of renewables in primary energy supply. The study shows that in the short term, RE supply is significantly but adversely affected by the total primary energy use. Energy intensity and access to renewable fuels contribute to an increased supply of RE. Moreover, RE supply experiences a strong and favourable influence from both economic expansion and lower interest rates. This study contributes to the body of knowledge on renewable-based energy systems in African countries by underlining the impact of interest rates and other factors that influence RE share in the entire primary energy supply, going beyond the power sector. The findings could serve as an evidence base for decision-makers in drafting evidence-based investment, sustainable development, and development assistance strategies.