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This study examines the moderating role of debt sustainability on the nexus between financial and economic growth in African countries.

This study utilised data from various sources, such as the World Bank and International Monetary Fund databases, specifically the World Development Indicators and Financial Access Survey. The data covered the period from 2004 to 2021 and focused on 53 African countries to examine the moderating effect of debt sustainability on the relationship between financial inclusion and economic growth using a two-step generalised method of moments system with forward orthogonal deviations.

The study findings indicate a direct link between financial inclusion and economic growth in African nations. In particular, the availability and utilisation of mobile money services are significant factors in promoting financial inclusion. Our study also highlights that excessive debt can impede economic growth by limiting the capacity of financial institutions to offer loans and other vital financial services.

Policymakers in Africa should promote economic growth by prioritising financial inclusion through mobile money and ATMs while ensuring sustainable debt levels.

This study adds to the ongoing discussion on the relationship between FI and economic growth in African countries. It explores how debt sustainability affects this relationship, and emphasises the importance of finding a balance between financial inclusion and debt management for long-term economic growth and development.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0062