Abstract

In an African context marked by the intensification of foreign direct investment (FDI) and a persistent dependence on exogenous financing, this study analyzes the joint role of endogenous financing and the attractiveness of FDI in the sustainable governance of local development projects. As part of an integrated approach to the territorial economy and public governance, the article postulates that territorial performance depends less on the volume of capital mobilized than on the institutional quality of its use. The research is based on a conceptual model of hybrid governance articulating endogenous financing, FDI, sustainable governance, institutional maturity, and territorial performance. A sequential mixed-methods approach is used, combining a quantitative survey of 325 territorial actors in Central Africa, analysed using structural equation modelling (PLS-SEM), with 32 in-depth qualitative interviews. The results show that endogenous financing has a positive and significant effect on sustainable governance (β = 0.41; p < 0.001), by strengthening local legitimacy, transparency and accountability. The attractiveness of FDI has a limited direct effect on territorial performance (β = 0.18; p < 0.05), but its impact becomes substantial when it is mediated by sustainable governance (β = 0.29; p < 0.01). The interaction between endogenous financing and FDI generates institutional synergy that improves governance quality (β = 0.33; p < 0.01). In addition, local institutional maturity positively moderates the relationship between sustainable governance and territorial performance (β = 0.22; p < 0.05). This study contributes to the literature on African territorial development by proposing an explanatory model that integrates local financial autonomy, international openness, and inclusive governance. It offers operational implications for public decision-makers and investors, favouring local development projects based on resource complementarity and institutional sustainability.

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