Environmental, Social and Governance (ESG) has increasingly become an important factor in determining the competitiveness of businesses as they operate in society, with a critical focus on the sustainability of their activities. Worldwide trade and investment agreements and arrangements, including the African Continental Free Trade Area (AfCFTA), have recognised the need to contribute towards advancing ESG and in turn, helping to achieve positive benefits across the triple bottom line (People, Planet and Profit).
Imani Development was contracted to conduct a survey among the African Private Sector to ascertain the current practices of ESG. The main objectives were to (i) take stock of the current ESG status; (ii) identify current challenges and issues; (iii) devise key strategic recommendations to enhance the practices of ESG among the African Private Sector and sustainable business practices in the AfCFTA market.
Some of the key findings from the survey of 66 African firms across the continent showed that African companies are largely in agreement that ESG is relevant to them and their primary motivating factor is eagerness to be good corporate citizens. To increase ESG uptake, companies believe that tax incentives and finance dedicated to improving ESG are critical.