Sub Saharan Africa faces a deepening fiscal growth dilemma. Public debt has risen
sharply, while weak revenue mobilization, rising debt service costs and persistent
governance constraints limit governments’ ability to convert borrowing into productive
investment. Although public borrowing can finance infrastructure, human capital and
crisis response, its growth benefits depend on the fiscal and institutional systems
through which resources are mobilized, allocated and monitored. This study examines
the relationship between fiscal policy composition, institutional quality and GDP
per
capita growth in 42 Sub Saharan African countries over 2000–2024. The findings show
that public debt is negatively associated with growth, while the nonlinear specification
confirms that the growth penalty intensifies at higher debt levels, consistent with
debt
overhang arguments. Revenue mobilization becomes growth enhancing once endo
geneity is addressed, whereas government expenditure is negatively associated with
growth in the dynamic specification, reflecting expenditure-composition and efficiency
constraints. Institutional quality emerges as one of the most consistent growth-
enhancing factors. The study concludes that debt sustainability in Sub-Saharan Africa
should be assessed through fiscal and institutional conditions, not debt ratios alone.
