While insecurity and violent extremism continue to escalate across fragile African states, particularly in the Sahel, West Africa, and the Horn of Africa, the underlying economic factors driving this trend remain underexplored. This study investigates the role of economic desperation, characterized by youth unemployment, institutional weakness, and systemic exclusion in fuelling terrorism, organized crime, and irregular migration. The main objective is to develop and analyze a systems-theoretic model integrating economic, social, and security dynamics to quantify the feedback loops linking economic stagnation with insecurity. Employing a mixed-methods approach, the study combines empirical case analyses from Nigeria, Burkina Faso, Somalia, and West Africa with a novel compartmental ordinary differential equations (ODE) framework capturing employment, unemployment, recruitment, and governance capacity. Simulation and sensitivity analyses reveal critical thresholds where recruitment into violent and criminal networks becomes self-sustaining, highlighting the pivotal role of job creation, state responsiveness, and reintegration efforts. Key findings demonstrate that economic interventions reducing youth unemployment outperform militarized responses in both efficacy and sustainability. The study underscores that insecurity is not merely an external threat but an endogenous outcome of broken social contracts and systemic failure. Policy implications advocate for integrated development-security strategies prioritizing youth employment, institutional strengthening, and regional cooperation. This research advances a scientific basis for proactive, evidence-based policymaking aimed at breaking cycles of violence and fostering Sustainable peace through economic inclusion and resilient governance.