Green Finance and the Evolution of Financial Markets in Sub-Saharan Africa: A Comprehensive Analysis

David Mhlanga
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David Mhlanga: The University of Johannesburg, School of Business and Economics

Chapter Chapter 10 in Sustainable Finance and Business in Sub-Saharan Africa, 2024, pp 209-225 from Springer

Abstract: Abstract This chapter explores the transformative role of green finance in shaping the financial markets of Sub-Saharan Africa, a region historically underrepresented in global financial narratives. By integrating a series of case studies, this work illuminates the successful implementation of green finance initiatives across the region, showcasing the innovative strategies employed to address environmental challenges while fostering economic development. The analysis delves into the mechanisms through which green finance influences the evolution of financial markets in Africa, highlighting the pivotal shifts toward sustainable investment practices and integrating environmental, social, and governance (ESG) criteria into investment decision-making processes. The chapter begins with an overview of green finance, defining its scope and significance within Sub-Saharan Africa’s unique environmental and economic landscapes. It then presents a selection of case studies that exemplify the impact of green finance in the region, including renewable energy projects, sustainable agriculture, and green bonds. These examples demonstrate the practical benefits of green finance in terms of environmental conservation and promoting financial inclusivity and resilience. Following the case studies, the chapter analyzes the broader implications of green finance for developing financial markets in Sub-Saharan Africa. It discusses the challenges and opportunities investors, policymakers, and financial institutions face as they navigate the transition toward sustainability. The analysis further explores the role of international cooperation and policy frameworks in supporting the growth of green finance in the region. The chapter underscores the critical importance of green finance in enabling Sub-Saharan Africa to meet its sustainable development goals while enhancing its participation in the global financial system. By fostering a deeper understanding of the interconnections between environmental sustainability and financial market development, this work contributes to the ongoing discourse on green finance and its potential to drive positive change in one of the world’s most dynamic regions.

Keywords: Green finance; Financial markets; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-74050-3_10

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DOI: 10.1007/978-3-031-74050-3_10

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