Africa ESG Forum Launches in Abidjan, Highlighting Critical Role of ESG Disclosure for Sustainable Development

The forum aims to foster collaboration and knowledge sharing on ESG issues, laying the groundwork for a centralized Africa ESG Information Disclosure Hub and integrating ESG principles into the continent’s development strategies.

Inaugurating the first Africa ESG Forum today in Abidjan, Côte d’Ivoire, Solomon Quaynor, Vice-President of the African Development Bank Group, emphasized the critical importance of Environmental, Social, and Governance (ESG) disclosure for attracting financing vital for sustainable development in Africa. "It is no longer an optional add-on; it is a necessity if Africa is to thrive and not just survive in the 21st century,” Quaynor stated.

The two-day event, co-organized by the African Development Bank, the Multilateral Cooperation Center for Development Finance (MCDF), and Making Finance Work for Africa (MFW4A), is themed “Building a Sustainable Finance Ecosystem for Africa: A Collaborative Approach for ESG Disclosure.” The forum aims to foster collaboration and knowledge sharing on ESG issues, laying the groundwork for a centralized Africa ESG Information Disclosure Hub and integrating ESG principles into the continent’s development strategies.

Urgency for Robust ESG Practices

Quaynor, who oversees Private Sector, Infrastructure & Industrialization at the Bank, highlighted the pressing need for robust ESG practices to secure substantial financial investments necessary for sustainable development. He pointed out that low awareness of ESG’s significance, inadequate infrastructure for data collection, and inconsistent policy engagement hinder progress. “Fragmented ESG disclosure standards could lead to Africa being excluded from global capital markets that increasingly prioritize sustainability,” he warned.

He added, “By facilitating better data availability and promoting best practices, we can enhance stakeholder engagement and foster greater trust between investors and businesses. This is essential for building a sustainable finance ecosystem that benefits everyone.”

Supporting Sustainable Investment

Frederic Wiltmann, Head of Project Team at MCDF, discussed initiatives aimed at supporting sustainable investment. “We now have several capacity-building programs focused on facilitating trade financing, connectivity infrastructure development, and environmental and social safeguards,” he explained. He noted that the Disclosure Hub initiative, launched at today’s forum, would be a significant outcome of these efforts.

The opening sessions also covered the development of an African ESG taxonomy and provided an overview of the global landscape of ESG disclosure. Lebogang Senne, Technical Director of the Pan African Federation of Accountants, remarked on Africa's potential to lead in sustainability reform. He noted, “The establishment of the Sustainability Centre of Excellence is critical for driving the adoption of international standards.” This center, approved by PAFA’s board in August 2024, aims to accelerate the continent-wide adoption of the IFRS Sustainability Disclosure Standards from the International Sustainability Standards Board (ISSB).

Innovative Insurance Solutions

During a session titled “Perspectives from Sustainable Finance Initiatives,” Wakesho Sonje of ICEA LION GROUP highlighted the Nairobi Declaration for Sustainable Insurance, which promotes ESG integration across Africa's insurance sector. With 219 members spanning 36 countries, the initiative commits to sustainable principles and the UN Sustainable Development Goals (SDGs). She also discussed the development of innovative products, such as parametric insurance, designed to address climate-related risks and protect vulnerable communities. Additionally, she mentioned partnerships like the African Development Bank’s Africa Climate Risk Insurance Facility for Adaptation (ACRIFA) that aim to achieve similar objectives.

Strong Participation and Future Discussions

The inaugural forum drew nearly 100 in-person delegates, with an additional 400 participants joining online, demonstrating a robust commitment to enhancing ESG disclosure as a cornerstone of sustainable development across Africa. Day 2 of the forum will feature engaging discussions on the challenges and opportunities in ESG reporting, along with insights from industry leaders. Sessions will also focus on investor expectations for ESG reporting, culminating in a panel discussion featuring representatives from various financial institutions.

This forum marks a significant step towards fostering a sustainable finance ecosystem in Africa, ensuring that the continent can attract the necessary investment to thrive in an increasingly interconnected world.