Domestic Resource Mobilisation and Sustainable Development in Africa: Do Institutions and Regulatory Frameworks Really Matter?
Forbe Hodu Ngangnchi1 & Fozoh Isiah Aziseh2
1Higher Institute of Commerce and Management (HICM), The University of Bamenda-Cameroon (Email: chiefforbe@gmail.com, Tel: +237 677575062)
2Research and Data Reporting Officer, African Youth Cooperation for Peace and Development, Yaoundé, Cameroon, Email: afozohisiah@gmail.com
To Cite: Forbe & Fozoh (2026) Domestic Resource Mobilisation and Sustainable Development in Africa: Do Institutions and Regulatory Frameworks Really Matter?. Journal of Tertiary and Industrial Sciences, JTIS, 6(1), 1–30. https://doi.org/10.5281/zenodo.18679805
Submission Date: 08/11/2025 Acceptance Date: 30/01/2026
Abstract
The COVID-19 pandemic has devastated economies across the continent, highlighting the urgent need for resource mobilization to reconstruct development programs. As such, this study examines the effects of domestic resource mobilization on sustainable development in Africa within the context of changing institutional frameworks, using panel data for 37 African countries from 2005 to 2023, sourced from the World Development Indicators, World Governance Indicators, World Economic Freedom Database, and the African Infrastructure Development Database, and implementing a two-step system generalized method of moments estimator. The findings emphasized that a country’s past achievements significantly influence its present outcomes. The study noted that effective mobilization of natural resources rents is essential for improving sustainable development in Africa, while higher levels of corruption weaken governance and hinder resource rent allocation. We note from the findings that effective governance, political stability, and strong regulatory frameworks positively impact sustainable development in Africa, whereas larger government sizes and rigid legal structures tend to impede progress and create bureaucratic inefficiencies. The analysis also reveals significant interactions between resource mobilization and both regulatory and economic institutional factors, indicating that effective corruption control can enhance the benefits of resource mobilization, while excessive bureaucracy may dampen these effects. Freedom to trade is noted as a positive force for resource mobilization, while stringent monetary policies can restrict economic activity. Policymakers are urged to strengthen anti-corruption measures through transparency initiatives and whistleblower protections, streamline government structures via administrative reforms, and invest in clear, enforceable regulatory frameworks. Additionally, enhancing legal protections for property rights, promoting trade liberalization by reducing tariffs and improving market access, maintaining sound monetary policies that support growth, and adhering to international regulations are all recommended strategies to maximize the benefits of natural resource extraction for sustainable development across the African continent.