Analysis of Non-Tariff Barriers, and Financial Services Liberalization, on Economic Growth under African Continental Free Trade Area in Sub-Saharan Africa

This study investigates the impact of non-tariff barriers and financial services liberalization on economic growth under the African Continental Free Trade Area in Sub-Saharan Africa from 2010 to 2025. Employing dynamic panel data analysis using two-step System generalized method of moments and moderation models, the study addresses endogeneity, persistence, and unobserved heterogeneity across countries. Results indicate that both non-tariff barriers and financial services liberalization significantly enhance growth, and their positive effects are strengthened under African Continental Free Trade Area participation, consistent with endogenous growth theory, which emphasizes investment, knowledge spillovers, and productivity gains as drivers of long-term growth. The moderation analysis further show that African Continental Free Trade Area reinforces the growth benefits of trade and financial reforms, while high inflation can constrain these effects. The findings imply that policymakers should harmonize non-tariff barriers, deepen financial reforms, maintain macroeconomic stability, and strengthen institutional quality to maximize the growth potential of continental integration. Future research should explore sector-specific effects, digital financial services, sustainability interactions, and micro-level heterogeneity to refine policy interventions. Overall, the study provides evidence that African Continental Free Trade Area, combined with sound domestic reforms, can serve as a catalyst for sustainable and inclusive growth in Sub-Saharan Africa.