Revisiting the sustainable industrialization paradigm in <scp>Africa</scp>: Exploring the influence of digitalization

Abstract This research contributes to the ongoing discourse surrounding the sustainable industrialization of African nations, a pivotal aspect emphasized by the United Nations within the Sustainable Development Goals. Drawing inspiration from the burgeoning digitalization trends across Africa, this study examines the role of digitalization in mediating the environmental repercussions of industrialization within the 45 African countries spanning the years 2000–2022. The assessment of environmental sustainability is gauged through ecological footprint and biocapacity. Employing the Environmental Kuznets Curve, and the Stochastic Impacts by Regression on Population, Affluence, and Technology framework, empirical analyses leverage the Generalized Method of Moments and the mediation analysis using structural equation modeling to unveil insightful findings. The research findings highlight the detrimental impact of industrialization on ecological health, evidenced by its correlation with an increase in ecological footprint and a decrease in biocapacity. Conversely, digitalization emerges as a positive influence on environmental well‐being. These findings remain consistent across diverse categorizations of digitalization, and ecological balance. Further examination of their interplay reveals a discernible favorable impact on environmental sustainability, with mediation analysis suggesting that digitalization mitigates approximately 4% and 6% of the overall impact of industrialization on ecological footprint and biocapacity, respectively. Additionally, our analysis lends credence to the Environmental Kuznets Curve hypothesis. As a result, it is imperative for governments to incentivize industries to adopt eco‐friendly practices and technologies in order to mitigate their ecological footprint. At the same time, policies that promote digitalization should be encouraged to further enhance environmental quality.