The role of sustainable energy in East Africa's Economy Growth Case of Kenya, Ethiopia and Burundi

Abstract

Energy access remains one of the most pressing development challenges in East Africa, where large sections of the population continue to live without reliable electricity. At the same time, the region possesses abundant renewable resources, making the transition to sustainable energy not only an environmental priority but also a critical driver of economic growth. Against this backdrop, this thesis investigates the role of sustainable energy in fostering economic development in East Africa, with particular attention to the contrasting experiences of Kenya, Ethiopia and Burundi.The main objective of the study was to assess whether renewable energy can meet the region’s projected electricity demand while supporting inclusive growth and reducing carbon emissions. To achieve this, the research combined scenario-based modelling of electricity demand and renewable supply with a statistical analysis of the relationship between energy consumption and economic growth. A policy priority index was created to check how well countries national strategies are working to attract investment for energy transition. The results show a strong link between electricity uses per capita and income per capita, meaning that economic growth and energy use go hand in hand. In Kenya, a mix of geothermal, solar, wind and hydropower investments show that good planning helps increase energy access and supports growth. Ethiopia relies heavily on its huge hydropower resources which highlights the need for big projects but also the risk of depending too much on one energy type.Burundi continues to struggle because of weak policies and low investment, which creates big gaps between supply and demand. The study shows that East Africa has enough renewable energy to cover future needs, but this will only be possible if countries invest more and put strong policies in place. The results also suggest that the region can keep growing its economy without increasing carbon emissions, as long as renewable energy remains a top priority. In short, this thesis demonstrates that renewable energy is not only good for the environment but also essential for building strong and fair economic growth in East Africa. To achieve this, countries will need good policies, solid investments plan, and strong cooperation between countries will be crucial to making renewable energy the foundation of the region’s future economy.