RENEWABLE ENERGY FINANCING AND RENEWABLE ENERGY MARKET PENETRATION IN SUB-SAHARAN AFRICA

The study examined the role of the public and financia sectors in financing for renewable energy market penetrartion nexus in Sub-Saharan Africa for the period 2000 to 2022. The study mainly investigated how public sector interacts with financial sector credit to boost renewable energy consumption in Sub-Saharan Africa. The study used a panel data from fourty six countries in Sub-Saharn Africa and the two step system Generalized Method of Moments for the analysis. The study revealed that renewable energy public sector financing has a negative significant effect on renewable energy market penetration, while financial sector private sector credit has a positive significant effect on renewable energy market penetration in SSA. It also found that the interaction between renewable energy financing and financial sector development significantly influence renewable energy market penetration in SSA. Consequently, the study concludes that the potential for renewable energy increase consumption in Sub-Saharan Africa exists given adequate financial support from public and private sectors as well as the financial sector. Hence, the study recommends that to enhance the effectiveness of financial sector investment in promoting renewable energy adoption, policies should focus on streamlining the investment climate for financial institutions and private enterprises, particularly concerning asset financing, stocks, and bonds tailored for the renewable energy sector