From growth to governance: What drives energy consumption in Sub-Saharan Africa?

Africa has among the lowest levels of energy consumption per capita despite its vast energy resource potential. This study investigates the determinants of primary energy consumption across 35 Sub-Saharan African countries over the period 1996 to 2023. Using panel unit root and cointegration tests followed by panel regression models with robust standard errors, the analysis examines how economic growth, industrialization, urbanization, and governance influence long-run per capita primary energy consumption. The results reveal that GDP growth, industry value added, and urbanization significantly increase per capita primary energy consumption, reflecting the structural transformation of African economies. Government effectiveness positively influences energy demand by strengthening institutional capacity and facilitating energy infrastructure development, while political stability exhibits a negative association, suggesting complex structural and informal energy dynamics within the region or African countries. These findings highlight the importance of coordinated policies linking energy expansion, industrial development, and governance reform to support sustainable development pathways in Sub-Saharan Africa.