Abstract:
This study investigates the impact of the International Financial Reporting
Standards (IFRS) adoption speed and the strength of institutional structures on
attracting capital inflows, fostering industrialisation, and promoting inclusive
growth in Sub-Saharan Africa. Emphasising the role of IFRS as a pivotal
financial screening tool for investors, the study highlights the urgency of
adopting these standards in a region marked by a significant financing gap for
sustainable industrial development. Utilising a quantitative approach and
covering data from 48 Sub-Saharan African countries from 2005 to 2019, the
study employs descriptive and inferential statistical methods, including a twostep
system GMM estimator, to analyse the data. Key findings reveal that the
speedy adoption of IFRS significantly enhances capital inflows, especially in
countries with robust institutional support, and that early adopters of IFRS
effectively leverage these inflows for accelerated industrialisation and
inclusive growth. The study therefore advocates for rapid IFRS adoption and
the strengthening of institutional structures in Sub-Saharan countries to
optimise capital inflows essential for industrial development and achieving
inclusive growth.
