Intervening Influence of Financial Development on the Relationship Between Sustainability Practices and Sustainable Development of the Sub-Saharan African Countries

Abstract

The objective of this paper was to explore how financial development affects the relationship between sustainability practices and sustainable development in Sub-Saharan Africa, where poor institutional quality and shallow financial markets may prevent sustainability gains from translating into measurable improvements in human development, poverty reduction, and environmental outcomes. Both descriptive and explanatory components were included in the study, which employed a longitudinal panel design. Using a positivist, longitudinal panel design, this study analyzes data from 49 Sub-Saharan African countries (2000–2023) sourced from the World Bank, United Nations Development Programme, and Sustainable Development Reports. Data analysis was done using regression models and descriptive analysis. The findings show that financial development does not serve as an effective transmission channel through which sustainability practices impact the achievement of sustainable development. The research concluded that policy interventions should include developing sustainable banking regulations, creating green finance incentives, establishing sustainability-linked lending criteria, and strengthening financial inclusion policies that target sustainable development sectors.