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Over the years, there have been huge variations in the growth performances of the economies in SSA. Whilst these disparities can be attributed to a wide range of factors, it is generally understood that differences in their economic structures explain the capacity for generating growth and absorbing shocks during a recession. This study contributes to literature by examining the impact of institutional quality and financial development on economic growth in low- and middle-income countries. Data was obtained from the World Bank and covered the period from 1975 to 2020. The study employed an ARDL model to establish both short and long run dynamics in the two sub samples. The study confirmed both short and long run causality from financial and institutional quality to growth. Institutional quality enhances growth in both low- and middle-income countries in the long run. Whilst the direction of the impact is the same, the magnitude of the impact of institutional quality is different within the two categories. Institutional quality plays a more significant role in low-income countries compared to middle income economies. The study brings out potential financial fragility and systemic risks in financial institutions among countries in SSA. Policies that enhance the quality, consistency, and uniformity of legal reasoning in judicial decisions are ideal. Reducing the risk profile for investments may enhance the flow of credit to the private sector by financial institutions.

Digital platforms are reshaping the landscape for small and medium enterprises (SMEs) across Africa, offering innovative solutions to challenges in market access, financial inclusion, and operational efficiency. This study provides a comparative analysis of the role of digital platforms in supporting SME growth in Kenya, Nigeria, and South Africa, three of the continent’s most digitally active economies. Drawing on secondary data from reputable sources, the research examines how mobile technologies, e-commerce, and fintech platforms influence SME outcomes in revenue, employment, and access to finance. The study further explores the enabling and constraining ecosystem conditions, such as digital infrastructure, literacy, and regulatory environments, that mediate platform effectiveness. The study shows that while all three countries exhibit measurable gains from platform adoption, the scale and sustainability of impact vary widely. Kenya shows significant advancement due to mobile-first innovation and proactive regulation. Nigeria demonstrates rapid but uneven progress shaped by informality and infrastructure gaps. South Africa benefits from advanced digital systems, yet faces persistent inclusion challenges in underserved communities. The study concludes with actionable policy recommendations to improve digital access, build inclusive ecosystems, and align national efforts with regional initiatives like the African Continental Free Trade Area (AfCFTA) and the African Union’s Digital Transformation Strategy

This study examines whether digital transformation is associated with higher labour productivity in the Southern African Development Community (SADC) and whether the relationship strengthens with human capital. A fully open panel is constructed from World Development Indicators and Penn World Table 11.0 for 13 SADC economies over 2005-2023. Digitalisation is measured by the first principal component of internet use, mobile subscriptions and fixed broadband. The empirical strategy combines country fixed effects with Driscoll-Kraay covariance and a pooled dynamic common correlated effects error-correction model. Country-cluster bootstrap inference, an equal-weight digital index, sequential country deletion and threshold estimation provide robustness checks. The long-run digital coefficient is positive (0.239; 95% bootstrap interval [0.033, 0.425]), while the error-correction coefficient indicates stable annual adjustment (-0.566; interval [-0.820, -0.208]). The digitalisation-human-capital interaction is not supported (-0.041; interval [-0.102, 0.015]), and the threshold slope difference also includes zero. H2 is rejected for the aggregate PWT human-capital index, not for skills in general. The findings identify a durable average digital productivity premium without evidence that national education stocks automatically magnify it. Policy should combine reliable connectivity with targeted, use-specific capabilities and business-ecosystem coordination.

This paper tests whether government effectiveness and regulatory quality amplify the productivity return to digitalisation in the Southern African Development Community (SADC). A fully unrestricted panel combines World Development Indicators, the 2025 Worldwide Governance Indicators revision and Penn World Table 11.0 for 15 economies over 2005–2023. Digitalisation is a principal-component index of internet use, mobile subscriptions and fixed broadband. Separate governance equations avoid mechanical multicollinearity. Country fixed effects with Driscoll–Kraay covariance are compared with pooled dynamic common correlated effects error-correction models. Digitalisation has a positive short-run association in the government-effectiveness equation (0.056; 95% country-cluster interval: 0.008–0.155), while regulatory quality has a positive direct short-run coefficient (0.208; 0.064–0.309). Neither governance measure positively magnifies digital returns. Long-run interaction intervals include zero; the regulatory-quality short-run interaction is negative (−0.069; −0.123 to −0.004), and threshold slope differences are unsupported. Error correction is stable in both equations, and country deletion preserves positive digital coefficients. Institutions remain important direct capabilities, but broad governance scores should not be presumed automatic digital multipliers. Policy should connect specific regulatory and implementation reforms to identifiable adoption constraints rather than relying on general institutional upgrading alone.

The study examines how institutional quality and digital financial inclusion influence economic growth in SADC from 2000 to 2022, using panel data from the World Bank and IMF. It applies fixed- and random-effects models, selecting the appropriate model via the Hausman test, and uses Driscoll–Kraay standard errors to address heteroskedasticity, autocorrelation, and cross-sectional dependence. The empirical results suggest that institutional quality, proxied by legal rights, has a positive and statistically significant impact on economic growth at the 5% level (β = 0.000231, p = 0.0348). In comparison, financial inclusion is also positive and significant at the 1% level (β = 0.02345, p = 0.0010). Notably, the findings provide evidence of a synergistic relationship between institutional quality and financial inclusion, in which improvements in governance frameworks strengthen the growth-promoting effects of financial inclusion. The overall model is statistically significant (Prob > F = 0.0475) and accounts for roughly 40% of the variation in economic growth. These findings suggest that isolated policy interventions are inadequate; rather, a coordinated ecosystem of governance and financial systems is necessary. Enhancing legal and regulatory institutions improves the efficacy of digital financial systems, consequently optimising resource allocation and fostering inclusive growth. The study advances the existing literature by offering region-specific evidence on the synergistic interaction between institutional quality and financial inclusion within a developing-country context. From a policy perspective, the findings emphasise the need for integrated strategies that simultaneously promote institutional reforms (e.g., the rule of law and regulatory quality) and expand digital financial infrastructure. Such complementarities are crucial for boosting regional competitiveness, encouraging financial deepening, and fostering sustainable economic growth in the SADC region.

This study examines whether digital transformation is associated with higher labour productivity in the Southern African Development Community (SADC) and whether the relationship strengthens with human capital. A fully open panel is constructed from World Development Indicators and Penn World Table 11.0 for 13 SADC economies over 2005-2023. Digitalisation is measured by the first principal component of internet use, mobile subscriptions and fixed broadband. The empirical strategy combines country fixed effects with Driscoll-Kraay covariance and a pooled dynamic common correlated effects error-correction model. Country-cluster bootstrap inference, an equal-weight digital index, sequential country deletion and threshold estimation provide robustness checks. The long-run digital coefficient is positive (0.239; 95% bootstrap interval [0.033, 0.425]), while the error-correction coefficient indicates stable annual adjustment (-0.566; interval [-0.820, -0.208]). The digitalisation-human-capital interaction is not supported (-0.041; interval [-0.102, 0.015]), and the threshold slope difference also includes zero. H2 is rejected for the aggregate PWT human-capital index, not for skills in general. The findings identify a durable average digital productivity premium without evidence that national education stocks automatically magnify it. Policy should combine reliable connectivity with targeted, use-specific capabilities and business-ecosystem coordination.

This paper tests whether government effectiveness and regulatory quality amplify the productivity return to digitalisation in the Southern African Development Community (SADC). A fully unrestricted panel combines World Development Indicators, the 2025 Worldwide Governance Indicators revision and Penn World Table 11.0 for 15 economies over 2005–2023. Digitalisation is a principal-component index of internet use, mobile subscriptions and fixed broadband. Separate governance equations avoid mechanical multicollinearity. Country fixed effects with Driscoll–Kraay covariance are compared with pooled dynamic common correlated effects error-correction models. Digitalisation has a positive short-run association in the government-effectiveness equation (0.056; 95% country-cluster interval: 0.008–0.155), while regulatory quality has a positive direct short-run coefficient (0.208; 0.064–0.309). Neither governance measure positively magnifies digital returns. Long-run interaction intervals include zero; the regulatory-quality short-run interaction is negative (−0.069; −0.123 to −0.004), and threshold slope differences are unsupported. Error correction is stable in both equations, and country deletion preserves positive digital coefficients. Institutions remain important direct capabilities, but broad governance scores should not be presumed automatic digital multipliers. Policy should connect specific regulatory and implementation reforms to identifiable adoption constraints rather than relying on general institutional upgrading alone.

The study examines how institutional quality and digital financial inclusion influence economic growth in SADC from 2000 to 2022, using panel data from the World Bank and IMF. It applies fixed- and random-effects models, selecting the appropriate model via the Hausman test, and uses Driscoll–Kraay standard errors to address heteroskedasticity, autocorrelation, and cross-sectional dependence. The empirical results suggest that institutional quality, proxied by legal rights, has a positive and statistically significant impact on economic growth at the 5% level (β = 0.000231, p = 0.0348). In comparison, financial inclusion is also positive and significant at the 1% level (β = 0.02345, p = 0.0010). Notably, the findings provide evidence of a synergistic relationship between institutional quality and financial inclusion, in which improvements in governance frameworks strengthen the growth-promoting effects of financial inclusion. The overall model is statistically significant (Prob > F = 0.0475) and accounts for roughly 40% of the variation in economic growth. These findings suggest that isolated policy interventions are inadequate; rather, a coordinated ecosystem of governance and financial systems is necessary. Enhancing legal and regulatory institutions improves the efficacy of digital financial systems, consequently optimising resource allocation and fostering inclusive growth. The study advances the existing literature by offering region-specific evidence on the synergistic interaction between institutional quality and financial inclusion within a developing-country context. From a policy perspective, the findings emphasise the need for integrated strategies that simultaneously promote institutional reforms (e.g., the rule of law and regulatory quality) and expand digital financial infrastructure. Such complementarities are crucial for boosting regional competitiveness, encouraging financial deepening, and fostering sustainable economic growth in the SADC region.

Digital platforms are reshaping the landscape for small and medium enterprises (SMEs) across Africa, offering innovative solutions to challenges in market access, financial inclusion, and operational efficiency. This study provides a comparative analysis of the role of digital platforms in supporting SME growth in Kenya, Nigeria, and South Africa, three of the continent’s most digitally active economies. Drawing on secondary data from reputable sources, the research examines how mobile technologies, e-commerce, and fintech platforms influence SME outcomes in revenue, employment, and access to finance. The study further explores the enabling and constraining ecosystem conditions, such as digital infrastructure, literacy, and regulatory environments, that mediate platform effectiveness. The study shows that while all three countries exhibit measurable gains from platform adoption, the scale and sustainability of impact vary widely. Kenya shows significant advancement due to mobile-first innovation and proactive regulation. Nigeria demonstrates rapid but uneven progress shaped by informality and infrastructure gaps. South Africa benefits from advanced digital systems, yet faces persistent inclusion challenges in underserved communities. The study concludes with actionable policy recommendations to improve digital access, build inclusive ecosystems, and align national efforts with regional initiatives like the African Continental Free Trade Area (AfCFTA) and the African Union’s Digital Transformation Strategy

Over the years, there have been huge variations in the growth performances of the economies in SSA. Whilst these disparities can be attributed to a wide range of factors, it is generally understood that differences in their economic structures explain the capacity for generating growth and absorbing shocks during a recession. This study contributes to literature by examining the impact of institutional quality and financial development on economic growth in low- and middle-income countries. Data was obtained from the World Bank and covered the period from 1975 to 2020. The study employed an ARDL model to establish both short and long run dynamics in the two sub samples. The study confirmed both short and long run causality from financial and institutional quality to growth. Institutional quality enhances growth in both low- and middle-income countries in the long run. Whilst the direction of the impact is the same, the magnitude of the impact of institutional quality is different within the two categories. Institutional quality plays a more significant role in low-income countries compared to middle income economies. The study brings out potential financial fragility and systemic risks in financial institutions among countries in SSA. Policies that enhance the quality, consistency, and uniformity of legal reasoning in judicial decisions are ideal. Reducing the risk profile for investments may enhance the flow of credit to the private sector by financial institutions.