IMPACT OF ENERGY PRICES, INFLATION ON ECONOMIC DEVELOPMENT OF SOME SELECTED AFRICAN STATES

Abstract

The African continent is a composition of countries with similar traditional heritage and a home to extremely diverse human and natural resources. The countries are at different stages of economic growth. There has been an energy price crisis in most countries in the sub-region. This research investigates the direct impact of energy prices and persistent increase in inflationary rate on the economic growth of African countries, starting from the period 2015 to 2021. Based on the GMM technique, the dynamic empirical evidence reveals that an increase in energy prices and persistent inflation reduces the economic growth of African states. Policy recommendations are directed toward sourcing cheaper and environmentally friendly energy in Africa.