The Role of Institutions and Governance in Africa’s Economic Development

Abstract

The role of institutions and governance is being examined in Africa’ economic development, particularly: how political, legal and economic institutions’ have a significant effect on growth and prosperity among African nations. Strong institutions have transparency; accountability; rule of institutional laws; thus, can provides a stable environment leading to attracting investments, supporting the optimal allocation of resources, establishing long term development. Therefore, weak governance, corruption and an unstable political environment can hinder progress on the economic front by discouraging both domestic and foreign investment. Overall, the results presented in this study demonstrate that obtaining sustainable economic growth and developing Africa requires improvements in governance and strengthening of institutions.