Kodjo Assogba

Type of the article: Research Article

Abstract
Amid escalating climate challenges, examining how financial innovation affects sustainable growth in Sub-Saharan Africa (SSA) while informing stronger environmental and financial policy design is a critical priority in environmental management. This study investigates the impact of green finance on green growth in SSA, emphasizing the moderating role of FinTech. Using panel data for 35 countries from 2000 to 2021, it applies the System-GMM estimator to address endogeneity. The results show that green finance significantly promotes green growth at the 1% level. FinTech also plays a critical role, both directly and by enhancing the effectiveness of green finance. Specifically, 1% increase in green finance and FinTech is associated with 5.63 % and 7.62 % gains in green growth, respectively, while their interaction yields an additional 0.22 % increase. The findings highlight the importance of policies that expand green finance through robust regulatory frameworks, innovative financial instruments, carbon pricing mechanisms, and the development of voluntary carbon markets. Leveraging FinTech can further support green investment by improving financial inclusion, lowering transaction costs, and increasing transparency. Strengthening human capital, particularly through environmental education, is essential to support sustainable practices. Besides, greater financial openness can attract foreign investment into green sectors. These measures can help policymakers foster sustainable growth, enhance climate resilience, and advance long-term environmental objectives in the region.