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Promoting Remittances for Electricity Access in sub-Saharan Africa: The Role of Governance

Author

Listed:
  • Pius Gamette

    (Pretoria, South Africa)

  • Nicholas M. Odhiambo

    (Pretoria, South Africa)

  • Simplice A. Asongu

    (Pretoria, South Africa)

Abstract

This study aims to examine the moderating role of governance in the relationship between migrant remittances and electricity access. This study adopts the System-Generalised Method of Moments (System-GMM) to examine how governance affects the connection between electricity access and migrant remittances in 40 sub-Saharan Africa between 1990 and 2022. First, the analysis shows that migrant remittances have a positive impact on access to electricity based on the non-interactive regressions. Second, with interactive regressions, governance and political stability show thresholds for complementary policies with migrant remittances on access to electricity. However, regulatory quality has a negative synergy with remittances on access to electricity. In terms of the decomposition analysis, (i) minimum and maximum thresholds for access to electricity range from 0 to 1.608, (ii) the minimum and maximum range for governance is from 0.246 to 0.739. Amid growing calls for inclusive energy transitions, this study sheds light on how migrant remittances when guided by sound governance can serve as catalytic tools for advancing sustainable electrification across sub-Saharan Africa.

Suggested Citation

  • Pius Gamette & Nicholas M. Odhiambo & Simplice A. Asongu, 2025. "Promoting Remittances for Electricity Access in sub-Saharan Africa: The Role of Governance," Working Papers of the African Governance and Development Institute. 25/056, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:25/056
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    File Function: Revised version, 2025
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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