Assessing The Effectiveness of Fintech, Green Finance, And Sustainable Development in SSA Economies: Empirical Evidence from a Novel Sustainability Index

Green finance and financial technology (Fintech) can help accomplish sustainable development goals by using innovative financial services and technologies. The Augmented Mean Group panel data model is used to investigate how green financing and financial technology impact sustainable development in SSA economies between 2000 and 2022. The following are established from net effects perspectives: (i) Fintech is moderated by FDI and FD to engender overall positive net effects on sustainable development and corresponding components, notably: economic sustainability, social sustainability and environmental sustainability; (ii) financial development and FDI moderate green finance to engender a positive effect on overall sustainability, a positive overall incidence that is driven by economic sustainability and mitigated by social sustainability and environmental sustainability. (iii) Less comparatively promising results are apparent when Fintech and green finance channels are considered simultaneously in view of using FDI and financial development policies to promote sustainability. Policy implications are discussed, inter alia, policies designed to use FDI and financial development as moderators of the green finance and Fintech channels should be independent because when taken together or engaged simultaneously, compared to independent Fintech and green finance frameworks, the effect of Fintech on environmental sustainability becomes negative while the impact of green finance on overall sustainability also becomes negative. This may reflect the notion that green finance and Fintech are mechanisms of substitution in the promotion of sustainable development by means of FDI and financial development policies. Other policy implications are discussed.