Impact Of Energy Consumption On Economic Growth In Lower Middle Income Economies In Africa

Abstract

The persistent challenge of achieving sustainable economic growth in African middle-income economies underscores the critical role of energy consumption as a key input in production and development. This study investigates the dynamic relationship between energy consumption and economic growth in these economies over the period 2003 to 2023. Employing a panel ARDL estimation technique, the research examines both short-run and long-run relationship across a panel of fifteen selected middle income African countries. The findings reveal a significant positive long-run relationship between energy consumption and economic growth, highlighting energy as a critical driver of economic growth. However, the short-run results suggest mixed impacts, with some economies experiencing negative effects due to inefficiencies in energy use. Based on these findings, the study recommends the adoption of energy-efficient technologies, investment in renewable energy infrastructure, and policies that promote sustainable energy consumption to enhance economic growth across the region. These measures are essential for ensuring both economic resilience and environmental sustainability.