How do green finance, digital technology, trade openness, and climate change interact to shape food production in sub-Saharan Africa?

Abstract

The promotion of sustainable food productivity through innovative technologies remains a central priority in economic development, attracting increasing attention from scholars, policymakers, and industry stakeholders. With the continuing rise in global food demand, resource-efficient solutions are essential to ensuring long-term agricultural growth and stability in food production. This study examines the impact of green finance, agricultural innovation, digital technology, trade openness, and climate change on food production in sub-Saharan Africa (SSA). Using the method of moments quantile regression (MMQR) and the generalised method of moments (GMM), it analyses a balanced panel dataset covering 46 SSA countries from 2001 to 2023. The findings highlight the positive influence of green finance, agricultural innovation, and digital technology in enhancing food production, particularly in lower production sectors, suggesting important bidirectional policy implications. Trade openness is found to promote agricultural growth but exhibits diminishing effects at higher levels of productivity, indicating the relevance of a unidirectional policy focus. In contrast, climate change has a negative effect on food production. The study also identifies key mediation pathways, including green finance stimulating research and development, digital technology improving agricultural credit and farmers' education, and trade openness attracting foreign direct investment. These results emphasise the importance of integrated policy frameworks that combine financial support, technological advancement, and trade openness to promote sustainable agricultural growth and strengthen food security across SSA.