Investments in Human Capital and Digitalization: Pathways to Reducing Energy Poverty in Emerging African Economies

ABSTRACT Despite investments in human capital and digitalization, Africa has made limited progress toward SDG 7—ensuring affordable and clean energy. This study examines three questions: (i) How does energy poverty relate to investments in human capital and digital capabilities? (ii) Do these investments have heterogeneous effects across different levels of energy access? (iii) Are direct digital capability investments more effective than broader education and health investments in promoting energy sustainability? The panel structural equation and quantile estimation techniques been used to analyse data from 2010–2023. The results highlighted that Nigeria has better energy access than Kenya and Ethiopia, while Kenya is relatively ahead in digitalization; however, Ethiopia lags in both digitalization and energy access. The findings show that traditional investments in education and health increase access to electricity and clean fuels, especially at moderate and high energy access levels, but their indirect effects through digital pathways are limited. In contrast, direct digital capability programs have a strong positive impact. Improving energy access thus requires prioritizing direct digital capability‐building programs, as well as strategically aligning education and health investments with digitalization to enhance their contribution to energy accessibility.