Work

From Innovation to Sustainability: Integrating Fintech, Green Trade and Knowledge Systems for Circular Growth in Sub‐Saharan Africa

Year: 2026

Type: article

Abstract: ABSTRACT The transition toward circular and sustainable growth remains a major challenge in Sub‐Saharan Africa (SSA), where resource constraints, limited recycling capacity, and infrastructure deficits constrain environmental performance. Drawing on circular economy and innovation systems perspectives, this study examines how financial technology (FinTech), green trade (captured by ICT goods imports and trade openness) and knowledge systems shape circular economy (CE) performance across 38 SSA countries over the period 2000–2023. CE performance is proxied by energy efficiency, renewable energy use and emissions outcomes as resource‐efficiency–based measures of circularity. Using a multi‐method panel econometric framework that accounts for cross‐sectional dependence, heterogeneity and dynamic effects, the results show that FinTech, particularly internet penetration and secure digital infrastructure, has a statistically and economically significant positive association with CE performance through enhanced financial inclusion and information diffusion. Trade effects are heterogeneous: ICT imports improve environmental outcomes, whereas trade openness is associated with weaker performance, reflecting composition effects and environmental leakage. Knowledge systems, measured by scientific output, ICT service exports and education expenditure, exhibit robust positive effects, highlighting the role of learning and absorptive capacity. Institutional quality and electricity access act as enabling conditions that amplify these relationships. Dynamic results reveal distinct short and long‐run effects, underscoring the need to align digital infrastructure, trade composition and innovation policy with sustainability objectives.

Source: Sustainable Development

DOI: 10.1002/sd.71140

Authors: Emmanuel Kwaku Manu, Bismark Asante, Maria L. Gorbunova, Isaiah Nketiah

Institutions: University of New England, N. I. Lobachevsky State University of Nizhny Novgorod

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Responsible consumption and production, Partnerships for the goals, Decent work and economic growth, Climate action

Open Access status: hybrid

Estimated APC paid: $4,250