A Review of Sustainable Finance Literature in Sub-Saharan Africa

Christelle Simo1 & Clement Ndindah Ndifor2
1Assistant Lecturer Department of Accounting and Finance University of Ngaoundéré, Cameroon
2 Head of Business Department, School of Doctoral Studies, Unicaf University Cyprus, Cyprus
DOI – http://doi.org/10.37502/IJSMR.2025.8106

Abstract

Sustainable finance is an emerging field that aims to integrate environmental, social, and governance (ESG) criteria into investment decision-making processes. This approach enables investors to customise their investments to align with projects that consider these ESG factors. Consequently, sustainable finance can be regarded as a significant instrument through which funders and investors can leverage their capital to optimise social impact in Sub-Saharan Africa. This study aims to contribute to the understanding of sustainable finance by conducting a systematic review of the extant literature. This study was designed using a qualitative approach through a comprehensive literature review. Reviews on sustainable finance in sub-Saharan Africa were conducted by reading and analysing 20 peer-reviewed journal articles and summarised in two tables, namely article journal and article category based on topic. The literature used in this review was sourced from multiple databases across the continent.  The findings of this study are that governments should prioritise environmental regulation, transparency, and public participation and explore climate finance sources. Prioritising domestic savings, discouraging capital flight, and promoting environmental cooperation can stimulate long-term economic growth. Finally, fintech has an important role to play in promoting inclusive finance, economic development, and reducing inequality, although a gradual approach is needed to fully realise its potential. In conclusion, policies that promote sustainable investment are needed to attract investors and foster a favourable investment environment.

Keyword’s: Sustainable Finance, Investments, Green Financing, Environmental Protection

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