An Empirical Analysis of Localized Solar and Wind Microgrid Adoption on Industrial Productivity in Sub-Saharan Africa

Abstract African manufacturing faces severe bottlenecks due to grid instability, high electricity tariffs, and reliance on fossil fuels. This study examines the viability of green industrialisation by deploying localized solar and wind microgrids to power industrial clusters. Utilizing a mixed-methods approach, data was gathered from 45 manufacturing firms across regional hubs in Kenya, Nigeria, and South Africa. The findings indicate that localized renewable grids reduce operational energy costs by 34% and minimize production downtime by 78%. Statistical analysis confirms a significant positive relationship between localized renewable energy adoption and industrial productivity. The study concludes that decentralized green infrastructure is critical to unlocking Africa's manufacturing potential and meeting climate goals.