From boardrooms to village markets, ESG frameworks often clash with daily realities that don’t fit into global scorecards.
The Heart of the Matter
Imagine being a business owner in Lagos or Lusaka, trying to grow your company while navigating unpredictable markets, unreliable infrastructure, and intense competition. Now add a new requirement: prove that your business is environmentally and socially responsible by global standards you didn’t help write. That’s the reality for many African companies facing ESG expectations today.
The ESG movement, Environmental, Social, and Governance, has gained serious global momentum. Investors now prefer companies that show they care about the planet, people, and how they’re managed. But for African businesses, this push is more than a checkbox. It raises real questions about cost, readiness, and fairness.
Africa is rich in resources. Yet, it's also where climate change hits hardest. Droughts, floods, and food insecurity are not theories; they’re part of everyday life. The African Union argues that ESG is essential for attracting global investment. That may be true. But who decides what ESG success looks like? And what happens when global rules clash with local needs?
Across the continent, extractive industries still dominate. Companies are expected to create jobs, build infrastructure, and solve poverty, often with limited support. ESG could help them do this better. It could also slow them down. . . .
Harness Knowledge for Impact
Every day, readers like you turn to Susinsight for a deeper understanding of the sustainable development challenges and opportunities in Africa.
Subscribe to any of our plans to unlock exclusive insights, in-depth articles, and resources that drive meaningful change.
Already a subscriber? Log in to continue reading.
