Governance and Sustainable Development Goal One (SDG1) “No Poverty” in Africa

This study investigates the impact of governance quality on the attainment of Sustainable Development Goal One (SDG1 – No Poverty) across 45 African countries between 2015 and 2021. The analysis addresses a critical gap in existing literature by assessing how three dimensions of governance—political, economic, and institutional—affect distinct SDG1 sub-indicators: poverty incidence (SDG1.1.1), access to basic services (SDG1.4.1), and dependence on official development assistance (SDG1.a.1). A panel dataset was constructed using indicators from the World Governance Indicators and the World Development Indicators. Principal Component Analysis (PCA) was applied to synthesize governance metrics, while a two-step System Generalized Method of Moments (GMM) was employed to estimate dynamic relationships, controlling for endogeneity and serial correlation. Findings reveal that improvements in political and economic governance significantly reduce poverty rates and enhance employment above the poverty line. Institutional governance, while less impactful on direct poverty indicators, significantly lowers reliance on foreign aid. Government effectiveness and political stability positively influence access to drinking water, whereas better governance overall corresponds to reduced levels of official development assistance for poverty alleviation. Control variables such as GDP per capita and infant mortality rates exhibit strong associations with poverty outcomes, reinforcing the multidimensional nature of SDG1 determinants. The study underscores the centrality of governance reform in advancing poverty eradication in Africa. It provides empirical evidence to guide policymakers in designing governance-centered poverty reduction strategies, while highlighting the potential of robust institutions and accountable governance to reduce aid dependency and foster sustainable, inclusive development.