A new study has offered fresh insight into the forces shaping Africa’s clean energy future, highlighting how employment patterns and natural resource wealth influence renewable energy use across the continent.
Despite possessing enormous potential for solar, wind, and hydropower, sub-Saharan Africa continues to struggle with some of the world’s worst energy access.
In their latest research, Prof Ismail O. Fasanya, Associate Professor of Economics and Finance, University of the Witwatersrand, Johannesburg, South Africa, alongside Dr. Kingsley I. Okere and Dr. Stephen Kelechi Dimnwobi, provides a compelling analysis of how Africa’s transition to green energy is influenced by what he describes as “the twin engines of jobs and natural capital.”
Speaking on the motivation behind the study, Prof. Fasanya explained, “Africa is in an energy paradox. We have the natural endowments needed for a green revolution, but our people still lack basic access to electricity. Our research asks a simple but powerful question: How can our wealth and workforce be harnessed to change this reality?”
Drawing on data from 44 African countries between 1991 and 2022, the study found that revenues from natural resources — such as oil, minerals, forests, and arable land — have a positive influence on renewable energy development. However, the structure of employment plays a crucial role in determining whether this wealth translates into green outcomes.
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“Employment in agriculture, services, and self-employment tends to support renewable energy adoption,” Prof. Fasanya noted.
“These groups are more inclined to use off-grid, decentralized solutions like solar-powered irrigation or home solar systems. On the other hand, jobs in the industrial sector and wage-based employment are often linked with fossil fuel dependence and tend to resist the shift to clean energy.”
The study also examined how natural resource rents interact with employment types, producing mixed results across different sectors.
According to Prof. Fasanya, this interaction is key to understanding regional disparities. “In countries where natural wealth is combined with inclusive employment structures, we see real progress. But in economies where resource wealth is concentrated in fossil fuel industries or poorly managed, the impact on renewable energy is either muted or negative.”
Prof. Fasanya pointed out that economic growth—often assumed to drive development—can actually hinder renewable energy adoption in its current form.
“Much of Africa’s economic expansion is still powered by fossil fuels. Without targeted policies, growth alone won’t get us to a clean energy future,” he said.
Country-specific findings further underscore the study’s conclusions. Nations like South Africa, Namibia, and Botswana were identified as examples where natural resources and employment dynamics positively influence renewable energy use.
In contrast, others such as Chad and Eswatini, despite having resource wealth, lag behind due to weak infrastructure and ineffective energy governance.
“What this tells us,” Prof. Fasanya explained, “is that there is no one-size-fits-all solution. The path to clean energy must be rooted in each country’s employment landscape, governance capacity, and how they manage their natural wealth.”
As part of the policy recommendations, the study suggests the establishment of national green investment funds financed through resource revenues, financial incentives for farmers and self-employed individuals adopting renewable technologies, and reforms that encourage industry to decarbonize through carbon pricing and clean energy subsidies.
“We need to reimagine how resource wealth is used,” said Prof. Fasanya. “Rather than pouring it into recurrent spending or fossil-based infrastructure, governments must channel it into solar grids, wind farms, clean cooking initiatives, and affordable green finance. It’s about future-proofing our economies.”
He also emphasised the role of employment policy in the energy transition. “Green energy uptake is not just about technology — it’s about people. Empowering workers in agriculture and the informal sector, and supporting clean energy enterprises, is as important as building power plants.”
Summing up the study’s significance, Prof. Fasanya said, “Africa doesn’t lack resources or ambition. What we need is alignment — between our economic structures, our energy goals, and the well-being of our people. With strategic investment and inclusive policy, our green future is within reach.”