Reducing food insecurity in sub-Saharan Africa: The role of institutions and financial stability

Abstract

Achieving food security (SGD 2) is a central theme in promoting overall well-being, economic growth, and maintaining peace and security. In the efforts to achieve sustainable development goals, Sub-Saharan African countries are still burdened with widespread food insecurity, poverty, and inequality. These bottlenecksare further worsened by institutional inefficiencies and unstable financial systems. This study investigates not only the role institutions and stable financial systems play in the reduction of food insecurity and its four components but also how poverty and well-being in SSA affect food security. The study employed data from 28 SSA countries from 2011 to 2021 which was analyzed using a two-step system GMM estimator. The results show that although financial stability is insignificant relative to food security and utilization of food, it increases the affordability and sustainability of food. Quality institution on the other hand significantly increases food security. Furthermore, well-being increases food security, affordability, utilization, and sustainability, while poverty reduces food security, accessibility, utilization, and sustainability. The study suggests that strengthening financial systems to provide financial access and security will reduce poverty and support the achievement of SDG 2. Additionally, policies to improve people’s well-being and further the existing institutions will provide a stronger foundation for SSA countries to achieve SDG 2.