Policy strategies for balancing digital financial inclusion with environmental sustainability and economic growth: lessons for sustainable development in Sub-Saharan African economies

Digital financial inclusion is essential for economic growth as it gives individuals and businesses access to financial services. However, as people and companies access these services, they often become more affluent, leading to increased consumption of luxury and energy-intensive products, thus impacting CO₂ emissions and, consequently, environmental sustainability. Examining how digital financial inclusion influences economic growth and environmental sustainability has become crucial. Therefore, this study investigates how digital financial inclusion influences economic growth and environmental sustainability in 15 Sub-Saharan African (SSA) economies. We used panel data covering 11-year period (2011–2021) and employed a Random Effects regression model. The findings reveal that ATMs have an insignificant negative effect on economic growth whiles debit cards have a positive insignificant effect on economic growth. In relation to environmental sustainability, the study reveals that ATMs have significant negative effect whiles Debit cards have positive significant effect on environmental sustainability. It is recommended that policymakers focus on additional initiatives such as creating a favorable business environment, improving regulatory frameworks, and fostering innovation beyond digital financial inclusion.