Climate change, globalization and climate policy effect on economic growth in Sub Saharan Africa

Climate change and globalization increasingly influence economic growth in Sub-Saharan Africa. However, their interaction remains underexplored. To address this gap, this study examines how climate conditions moderate the impact of trade and financial globalization on economic growth. It also evaluates whether adopting Nationally Determined Contributions (NDCs) fosters economic growth. Methodologically, panel data for Sub-Saharan African countries were analyzed using interactive climate-globalization models estimated via Feasible Generalized Least Squares (FGLS). The Callaway and Sant’Anna multi-period Difference-in-Differences estimator was employed to examine the impact of NDC adoption. Study result showed that climate vulnerability reduces the growth benefits of financial globalization, whereas rising temperatures strengthen the positive impact of trade globalization. Moreover, NDC adoption increases economic growth by an average of 1.9% points. The underlying rationale is that severe climate risks lower financial investment efficiency, while warmer temperatures force economies to rely more heavily on trade for adaptive technologies and green resources. Policymakers should strengthen climate-resilient investments, accelerate green innovation, and facilitate international trade integration to ensure sustainable economic development.