IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v34y2026i2p2300-2309.html

Finance as a Catalyst for Public Health and Sustainable Development in Sub‐Saharan Africa

Author

Listed:
  • Bo Lan
  • Aysha Abid

Abstract

This study examines the role of domestic credit as a catalyst for advancing public health and sustainable development in Sub‐Saharan Africa. It focuses on five countries: South Africa, Tanzania, Ghana, Botswana, and Malawi, using annual panel data from 2000 to 2023 to explore both long‐ and short‐run dynamics. Methodologically, the study employs descriptive statistics, correlation analysis, cross‐sectional dependence testing, slope heterogeneity, unit root tests, and panel cointegration techniques to assess the financial development–health nexus. Key health indicators include current health expenditure per capita, life expectancy at birth, under‐five mortality rate, and HIV prevalence. Results demonstrate that domestic credit significantly improves health expenditure and life expectancy, while contributing to reductions in under‐five mortality and HIV prevalence in the long run. Short‐run effects, however, vary across countries due to structural differences in health financing and institutional capacity. These findings underscore the importance of financial sector development in strengthening health systems and advancing sustainable development goals (SDGs) across the region. Policy recommendations highlight the need to expand credit accessibility, align financial reforms with public health priorities, and address cross‐country disparities to promote resilient and equitable health outcomes.

Suggested Citation

  • Bo Lan & Aysha Abid, 2026. "Finance as a Catalyst for Public Health and Sustainable Development in Sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(2), pages 2300-2309, April.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:2:p:2300-2309
    DOI: 10.1002/sd.70443
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.70443
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.70443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fotio, Herve Kaffo & Nchofoung, Tii N. & Asongu, Simplice A., 2022. "Financing renewable energy generation in SSA: Does financial integration matter?," Renewable Energy, Elsevier, vol. 201(P2), pages 47-59.
    2. Mohsin, Muhammad & Taghizadeh-Hesary, Farhad & Iqbal, Nadeem & Saydaliev, Hayot Berk, 2022. "The role of technological progress and renewable energy deployment in green economic growth," Renewable Energy, Elsevier, vol. 190(C), pages 777-787.
    3. Manu, Emmanuel Kwaku & Chen, George S. & Asante, Dennis, 2022. "Regional heterogeneities in the absorptive capacity of renewable energy deployment in Africa," Renewable Energy, Elsevier, vol. 193(C), pages 554-564.
    4. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    5. Uddin, Myne & Shahbaz, Muhammad, 2026. "Evaluating the influence of Chinese investment, FDI and digitalization on renewable energy dynamics in Africa," Renewable Energy, Elsevier, vol. 256(PC).
    6. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    7. Ongo Nkoa, Bruno Emmanuel & Ewolo Bitoto, Fabrice & Bikoula Minkoe, Séraphin Brice, 2024. "Resource dependence and life expectancy in sub-Saharan Africa: Does financial sector stability break the curse?," Resources Policy, Elsevier, vol. 97(C).
    8. Ngounou, Borice Augustin & Wang, Mingsen & Zhu, Delong, 2025. "Does energy poverty undermine health spending in Africa? A comparative analysis of public and private healthcare spending," Renewable Energy, Elsevier, vol. 239(C).
    9. Mugume, Regean & Bulime, Enock W.N., 2024. "Delivering double wins: How can Africa's finance deliver economic growth and renewable energy transition?," Renewable Energy, Elsevier, vol. 224(C).
    10. Westerlund, Joakim & Urbain, Jean-Pierre, 2013. "On the estimation and inference in factor-augmented panel regressions with correlated loadings," Economics Letters, Elsevier, vol. 119(3), pages 247-250.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baltagi, Badi H. & Feng, Qu & Kao, Chihwa, 2016. "Estimation of heterogeneous panels with structural breaks," Journal of Econometrics, Elsevier, vol. 191(1), pages 176-195.
    2. Tugba Nur & Emre E. Topaloglu & Sureyya Yilmaz-Ozekenci & Erol Koycu, 2025. "The Impact of Energy Intensity, Renewable Energy, and Financial Development on Green Growth in OECD Countries: Fresh Evidence Under Environmental Policy Stringency," Energies, MDPI, vol. 18(7), pages 1-28, April.
    3. George S. Chen & Emmanuel Kwaku Manu & Dennis Asante, 2023. "Achieving environmental sustainability in Africa: The role of financial institutions development on carbon emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(5), pages 3272-3290, October.
    4. Busra Agan Celik & Kingsley Okiwelu & Stephen Obinozie Ogwu & Gabriel Chukwuka Nzeadachie, 2026. "The moderating role of institutional quality in the debt stock-financial development-economic growth nexus: evidence from the panel QARDL model," SN Business & Economics, Springer, vol. 6(4), pages 1-36, April.
    5. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    6. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    7. Annisaa Rizky Dwi Brintanti & Iqram Ramadhan Jamil & Usman Alhassan & Brama Yudha Kusmara & Yessi Rahmawati, 2025. "Inverted N-shape relationships: revisiting the dynamic effect of natural resources on poverty in Indonesia," Asia-Pacific Journal of Regional Science, Springer, vol. 9(1), pages 83-105, March.
    8. Obukohwo Oba Efayena & Enoh Hilda Olele, 2024. "Moderating the Effect of Institutional Quality on the Fiscal Policy and Economic Growth Nexus: What Evidence Exists in Sub-Saharan Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 20436-20458, December.
    9. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    10. Arsen Tleppayev & Saule Zeinolla, 2025. "Forecasting Youth Unemployment Through Educational and Demographic Indicators: A Panel Time-Series Approach," Forecasting, MDPI, vol. 7(3), pages 1-20, July.
    11. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    12. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).
    13. Huntington, Hillard & Liddle, Brantley, 2022. "How energy prices shape OECD economic growth: Panel evidence from multiple decades," Energy Economics, Elsevier, vol. 111(C).
    14. De Vos, Ignace & Stauskas, Ovidijus, 2024. "Cross-section bootstrap for CCE regressions," Journal of Econometrics, Elsevier, vol. 240(1).
    15. Tiwari, Sunil & Mentel, Grzegorz & Si Mohammed, Kamel & Rehman, Mohd Ziaur & Lewandowska, Anna, 2024. "Unveiling the role of natural resources, energy transition and environmental policy stringency for sustainable environmental development: Evidence from BRIC +1," Resources Policy, Elsevier, vol. 96(C).
    16. Irandoust, Manuchehr, 2019. "On the relation between exchange rates and tourism demand: A nonlinear and asymmetric analysis," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    17. Mamkhezri, Jamal, 2025. "Assessing price elasticity in US residential electricity consumption: A comparison of monthly and annual data with recession implications," Energy Policy, Elsevier, vol. 200(C).
    18. Breitung, Jörg & Pesaran, Mohammad Hashem, 2005. "Unit roots and cointegration in panels," Discussion Paper Series 1: Economic Studies 2005,42, Deutsche Bundesbank.
    19. Olatunji A. Shobande & Simplice A. Asongu, 2021. "Financial Development, Human Capital Development and Climate Change in East and Southern Africa," Working Papers 21/042, European Xtramile Centre of African Studies (EXCAS).
    20. Muhammad Azam Khan & Salma Zahir & Sardar Fawad Saleem, 2026. "The role of inflation and institutional quality in shaping healthcare expenditure: Insights from Asia–Pacific countries," International Economics and Economic Policy, Springer, vol. 23(1), pages 1-39, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:34:y:2026:i:2:p:2300-2309. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.