This empirical study aims to investigate the effects of political instability on economic volatility and monetary policy conduct. The econometric methodology adopted is the Panel Auto-Regressive Distributed Lag (PARDL). The instability variable was determined using the PCA method for 9 countries from the first quarter of 2010 to the first quarter of 2023. The empirical findings show that political instability had a negative influence on economic volatility and threatened monetary policy transmission.

The COVID-19 pandemic and the slowdown in the global economy are hitting hard many African countries, especially those already struggling with the negative effects of climate change. In this context, transitioning towards a more ecologically sustainable economy is not only necessary but also presents significant opportunities for economic development in these countries. However, achieving this transition is hindered by the difficulty of mobilizing funding, particularly in French-speaking African countries.