Enhancing sustainable development in West Africa despite uncertainty: The transformative potential of green financing

Despite the increasing evidence on the adverse effects of uncertainty on sustainable development, little is known about how green financing can mitigate this effect. This paper assesses the transformative potential of green financing in promoting sustainable development amid prevailing uncertainties in West Africa, drawing on evidence from developed regions. Four different static and dynamic model estimators are employed to analyse relevant data for the 2010–2022 period drawn from 14 West African countries. The empirical findings show uncertainty as a major impediment to sustainable development, while green financing enhances sustainable development in West Africa. Further results present green financing as a significant moderator of the negative effect of uncertainty on sustainable development. The results remain robust across various estimation methods and alternative measures of green financing. Thus, the lacunas in existing green financing frameworks in West Africa must be fixed while developing/strengthening modern frameworks and policies to enhance sustainable development.