Utilising the Grounded Theory Research Method, this study identified a range of open, axial and selective codes, through a literature review, which resulted in the formulation of a proposed theory of how war economies are formed and maintained. Based on the theoretical proposition of the proposed theory, a policy framework for dismantling such war economies was also developed and presented. The proposed theory of war economies essentially argues that war economies are formed in post-colonial sub-Saharan Africa because of the existence of an artificial state. The existence of an artificial state is ascribed to the emerging legacies of colonial state formation processes, which created failed state entities which are unable to produce public goods for all its citizens because of its inability to maintain a monopoly of violence whilst maintain full administrative control over its territory. This inability results in an increase in the vulnerability of state and non-state actors. In response to these vulnerabilities, both state and non-state actors established a range of parallel political, economic and military structures. These structures in turn made use of both network and resource capacities to create an environment where politics are economised and conflict is commercialised, in order to mitigate the impacts of state failure and the inability to produce public goods. The result of the creation of an environment where politics are economised and conflict is commercialised, is the creation of incentives, structures and processes to ensure that conflict and associated conditions of instability are sustained in order to ensure primitive accumulation of wealth and resources. Based on the core theoretical proposition of the proposed theory, the study also presents a broad policy framework for dismantling war economies. In broad terms the framework proposes an integrated state-building process, based on a range of policy mechanisms aimed at maintaining a monopoly over violence, increasing administrative control, dismantling conflict networks and ensuring effective and efficient resource management.