Sustainable Futures: Redefining Africa's Circular Economy Through FinTech and Knowledge‐Driven Innovations

ABSTRACT As sustainability becomes a global imperative, the circular economy ( CE ) presents a vital strategy for resource efficiency and resilience, particularly in Africa. This study examines how FinTech and knowledge‐driven innovations (i.e., human capital, ICT access, and innovation) shape CE outcomes across 33 African countries from 1997 to 2021. Using feasible generalized least squares (FGLS), panel‐corrected standard errors (PCSE), instrumental variables (2SLS), and quantile regression (MM‐QR), the study finds that FinTech adoption significantly enhances CE , especially through its role in enabling digital financial inclusion and low‐waste practices. Human capital positively impacts CE . ICT infrastructure shows mixed but important effects: mobile cellular subscriptions (ICT1) broaden access to digital tools, while secure internet servers (ICT2) are essential for advanced CE technologies. Innovation output exerts positive effects on CE and enhances the impact of FinTech. Regional findings reveal that Southern Africa shows the highest FinTech‐driven CE gains, supported by strong ICT and human capital; East and West Africa benefit from ICT2 and patenting, while Central Africa's CE potential is limited by weak digital infrastructure. These findings highlight the need for integrated, region‐specific policy approaches to accelerate CE transitions.

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