Nigerian Journal of Banking and Financial Issues (NJBFI)

BLUE ECONOMY AND SUSTAINABLE DEVELOPMENT IN SUB-SAHARAN AFRICA

Abstract

This study investigated the effect of the blue economy on sustainable development in Sub-Saharan Africa, with a focus on hunger reduction as a critical development outcome.

Using Times Series data for 24 years (2000 – 2023), the study analyzed the relationship between credit for fishing investment (CFFI), expenditure on ocean and water maintenance (EOWN), marine production contribution to GDP (MPCG), and water transport investment (WTIN), employing the Generalized Method of Moments (GMM) technique to address non-stationarity and endogeneity concerns. Descriptive statistics revealed considerable variability and positive skewness across variables, suggesting unequal distribution of blue economy benefits within the region.

The GMM results showed that marine production contribution to GDP (MPCG) had a significant and substantial negative effect on hunger (coefficient = -21.4899, p = 0.0067), implying the vital role of marine productivity in achieving food security. Similarly, water transport investment (WTIN) demonstrated a statistically significant negative impact on hunger (coefficient = -0.0152, p = 0.0088), reiterating the importance of transport infrastructure in facilitating food distribution and economic connectivity. Conversely, credit for fishing investment (CFFI) and expenditure on ocean and water maintenance (EOWN) had negative and positive effects respectively on hunger, but these relationships were not statistically significant (p-values of 0.2109 and 0.2457).

The study concluded that while financial investments alone are insufficient, enhancing marine production and investing in transport infrastructure are critical levers for leveraging the blue economy to reduce hunger. It recommended the shifting of focus from input-based strategies to productivity-driven and infrastructure-led development pathways in blue economy strategies.