Sustainable business practices in Africa have appeared in the spotlight, with the continent’s abundant natural resources and vibrant entrepreneurial spirit, tremendous potential lies for sustainable development. Yet, the exploitation of these resources without regard for environmental and social consequences has led to challenges ranging from ecological degradation to social inequalities. As we stand on the cusp of a global sustainability revolution, African businesses have caught on quickly and recognized the imperative to integrate sustainable practices into their operations. Sustainability transcends mere environmental stewardship; it encompasses social responsibility and economic resilience. By adopting sustainable business models, African enterprises can mitigate risks associated with climate change, and enhance their brand reputation, while facilitating access to new markets and investment opportunities. Moreover, embracing sustainability fosters innovation and operational efficiency, driving cost savings and bolstering competitiveness in a rapidly evolving marketplace.
A Potential Solution to a Growing Gap:
Sustainability is becoming a necessity for corporations due to the changing perspectives around the world. The scrutiny over resource efficiency and climate change has tightened over the years to companies especially as they are largely seen as the biggest drivers of social change in our economies. People are challenging companies to address the gap between knowing and doing by embracing sustainable practices and providing for the present without compromising the needs of future generations.
Since the start of this narrative, there is arguably no better precedence being set than in the first-world continents, particularly Europe, North America, and parts of Asia. Africa is not being left behind either. Although global investments in assets under management in funds aligned to environmental, social, and governance principles saw exponential growth to over USD 174 billion by 2020, a 200 percent increase from the previous year, 14 percent of those funds made their way to African-targeted projects, indicating a growing alternative form of investment that could address a gap in investment funding across the continent.
Allow me to share inspiring case studies of African businesses leading the charge towards sustainability: M-Pesa (Kenya): M-Pesa’s mobile-based banking service has transformed financial inclusion in Kenya, demonstrating how technology can drive sustainable economic empowerment. By providing accessible and affordable financial services to underserved populations, M-Pesa not only improves livelihoods but also contributes to social and economic development. Bboxx brings clean, affordable solar energy to off-grid communities, showcasing the transformative power of renewable energy in driving sustainable development.
Through innovative financing models and strategic partnerships, Bboxx has electrified millions of homes, reducing reliance on fossil fuels and enhancing energy access in remote areas. EcoPost manufactures fencing posts from recycled plastic waste, tackling environmental and social challenges while promoting a circular economy. The firm’s approach of diverting plastic waste from landfills and creating sustainable alternatives to traditional timber posts demonstrates how innovative solutions can address environmental concerns while generating economic value. Cocoa 360 is a social enterprise that empowers cocoa farming communities through healthcare and education initiatives. By reinvesting profits from a community-owned cocoa farm into healthcare centers and educational programs, Cocoa360 demonstrates how businesses can create shared value and drive positive social impact. These examples illustrate the diverse ways in which African businesses are harnessing sustainability to create value and drive positive impact warranting investment based on sustainability indexes.
Strategies for Achieving Sustainability:
So where can businesses begin? The topic of sustainability is largely new, with only a handful of entrepreneurs and stakeholders in industries thinking about this narrative. Drawing from my years of experience as a business advisor, here are key strategies for African businesses to start thinking about to embrace sustainability:
1. Engage stakeholders: Foster dialogue and collaboration with employees, customers, suppliers, and local communities to understand their needs and priorities.
2. Set Clear Goals: Define measurable sustainability goals aligned with international standards such as the UN SDGs and establish KPIs to track progress.
3. Embrace Innovation: Leverage technology and innovation to develop sustainable solutions that address pressing challenges.
4. Integrate sustainability practices across the value chain: Embed sustainability principles throughout the value chain, from sourcing to disposal, and collaborate with partners to uphold ethical practices.
5. Empower Employees: Provide training and awareness programs to instill a culture of sustainability among employees and encourage their active participation.
Sustainability isn’t just a buzzword; it’s the blueprint for a prosperous and resilient future for African businesses. The continent is in an enviable position with a large percentage of the population under the age of 25. The attitude towards sustainability will be driven by this younger generation, who desires to run, work for, and invest in businesses that have an ostensible “purpose.” As entrepreneurs and visionaries, let us seize the opportunity to embrace sustainability as the new norm, unlocking the green gold that awaits us. Together, we can build a sustainable and thriving Africa for generations to come.
Further Reading:
Here are some titles that keep me grounded on the subject
1. “The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It” by Paul Collier – This book provides insights into the economic challenges faced by many African countries and offers strategies for sustainable development.
2. “The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs” by Gunter Pauli – Gunter Pauli explores innovative business models that promote sustainability while creating jobs and economic growth, offering inspiration for African entrepreneurs.
3. “How to Run a Sustainable Business: The Guardian Sustainable Business” – This collection of articles from The Guardian explores various aspects of sustainability in business, offering practical advice and case studies for implementation.
4. “Sustainability at Work: Careers that Make a Difference” by Marilyn Waite – Marilyn Waite explores career opportunities in sustainability and guides individuals looking to make a positive impact through their work.
5. “The Green to Gold Business Playbook: How to Implement Sustainability Practices for Bottom-Line Results in Every Business Function” by Daniel C. Esty and P.J. Simmons – This practical guide offers strategies and tools for integrating sustainability into business operations, with actionable advice for businesses of all sizes.
6. “Africa’s Business Revolution: How to Succeed in the World’s Next Big Growth Market” by Acha Leke, Mutsa Chironga, and Georges Desvaux – This book explores the opportunities and challenges of doing business in Africa, including the role of sustainability in driving economic growth and development.
7. “The Triple Bottom Line: How Today’s Best-Run Companies Are Achieving Economic, Social, and Environmental Success — and How You Can Too” by Andrew W. Savitz and Karl Weber – Andrew Savitz and Karl Weber discuss the concept of the triple bottom line and how businesses can achieve sustainable success by balancing economic, social, and environmental objectives. These resources offer valuable insights and practical guidance for individuals and businesses interested in further exploring the intersection of sustainability and business in Africa.
Edith is the Founder and CEO of Arielle for Africa Ltd. and Arielle Advisory. A serial entrepreneur, she is on a mission to empower African youth through job creation, promoting entrepreneurship, scaling African businesses, advancing STEM education, and championing sustainability in business. Outside of her profession she is an avid reader, podcast show host, writer and public speaker.
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