Green Fintech Adoption Pathways and Constraints Shaping Sustainable Finance Innovation in Africa

Abstract

We examine how green fintech adoption pathways shape sustainable finance innovation across African financial ecosystems. Using firm level panel data from the African Green Fintech Adoption Dataset covering 2018 to 2024, we estimate a pathway based model linking digital payment innovations, green lending platforms, and sustainability data analytics to multidimensional innovation outcomes under varying institutional conditions. We find that adoption effects are asymmetric and conditional. Payment innovations primarily expand inclusion and system reach, green lending platforms mobilize capital toward environmentally aligned activities, and sustainability data analytics strengthen credibility and scalability of innovation. These effects intensify where regulatory clarity and policy support are stronger, confirming that institutions shape how technology translates into impact. The core contribution lies in introducing a mechanism driven explanation that moves beyond adoption volume and shows why similar fintech tools generate divergent sustainability outcomes across markets. The findings refine sustainable finance and innovation theory by integrating adoption pathways with institutional moderation. Policy relevance emerges in the need for coordinated regulation, incentives, and data governance to unlock scalable green finance. Managers can apply the insights to sequence fintech strategies and align products with governance capacity.