The Role of Fintech in Facilitating Access to Green Finance in South Africa

Abstract

This qualitative study investigated the part of Fintech in enhancing access to green finance products for individual Green Energy Transition (GET) projects in urban South Africa, which focussed on Gauteng Province. The research aimed to address gaps between ambition and action by exploring how technology enabled financial platforms supported participation in sustainable energy initiatives. Through semi-structured interviews with 20 participants, comprising of users and non-users of green finance product, the study examined four key areas in the accessibility of green finance via Fintech platforms, financial literacy related to green finance, the influence of government policies and regulations, and opportunities for increasing Fintech adoption. The findings indicated that affordability remained a significant barrier despite the potential of Fintech platforms to simplify loan applications and investment procedures. Participants highlighted the need for rental options, subsidies, and clear regulatory frameworks to make green finance more inclusive. Financial literacy was identified as another critical factor, with hard-to-understand documentation and insufficient awareness that hindered adoption. Government- led education campaigns and collaborations with Fintech companies were suggested as effective strategies to bridge these knowledge gaps. Furthermore, inconsistent policies and municipal fees were found to undermine incentives, which emphasised the importance of supportive regulations and inter-sectoral cooperation. The Multi-Level Perspective (MLP) framework was used in the study analyses on how technological advancements (niche), institutional practices and policies (regime), and broader societal pressures (landscape) interacted to shape green finance adoption. Key recommendations included expanding tax rebates to cover additional components like inverters and batteries, the promotion of community- based educational programs, the creation of partnerships between governments iii and Fintech companies, and the development of user-friendly digital tools to simplify green finance processes. This research contributed to the growing body of literature on green finance and Fintech, which offered actionable insights for policymakers, financial institutions, and stakeholders aimed to promote sustainability in urban South Africa. The combination of innovative technologies, targeted education, and supportive regulations, highlighted in the study created a pathway for an enabling environment for wider individual participation in GET projects, ultimately contributing to a more sustainable and equitable future.