Africa Quarterly Newsletter - Autumn 2024
In Africa, some of our team members are involved in the Environment, Climate and Sustainability Sector.
Understanding Carbon Exchange
Carbon exchange is a hot and sometimes controversial topic, but understanding what it entails along with its risks, opportunities, and challenges is essential.
We interviewed Nicholas Rowley, founder of Green Asset Exchange, who provided insights into the world of carbon credit trading and its potential to drive climate solutions.
What is a carbon credit exchange?
Historically carbon credits were traded OTC but due to this information on pricing and volumes were hard to come by and brokers were taking a huge percentage of the credits and thus less revenue was going to the projects, transactions were also complicated and had counter party risks.
The Africa Shared Value & ESG Summit
by MWENDE KAMAU
The inaugural Africa Shared Value & ESG Summit was a landmark event that brought together visionaries, thought leaders, and innovators from across the continent to reimagine the role of business in driving sustainable development. As my colleagues and I walked into the vibrant space, we were eager to contribute to the dialogue and explore how purpose-driven initiatives could transform Africa’s socio-economic landscape.The summit's central theme revolved around embedding Environmental, Social, and Governance (ESG) principles into business practices and embracing the shared value approach—creating economic success that also generates value for society. The discussions were dynamic, ranging from sustainability innovations to practical strategies for aligning profit with purpose.
Learning and Inspiration
Throughout the sessions, speakers shared powerful insights into how businesses can tackle pressing challenges like climate change, youth unemployment, and social inequality while achieving long-term success. Some of the key highlights included:
Reflections and Takeaways
The summit offered a wealth of knowledge and inspiration, challenging attendees to rethink how purpose and profitability intersect. It highlighted the transformative potential of collaboration, urging organizations to work together to tackle pressing challenges while leveraging shared opportunities.
The conversations reinforced the urgency of aligning business strategies with societal goals, presenting ESG principles not as an optional add-on but as a core framework for long-term success. The energy in the room, combined with the shared commitment to sustainable growth, was a powerful reminder that progress is possible when stakeholders unite under a common vision.
Looking Ahead
The Africa Shared Value & ESG Summit was more than an event; it was a call to action. It underscored the need to champion shared value and sustainability at every level of business and governance. As we reflect on the insights gained, we are inspired to deepen our commitment to purpose-driven impact, aligning our efforts with the growing movement of businesses prioritizing both profit and the well-being of people and the planet.
The summit’s resounding message was clear: the future of business is shared value, and we are proud to be part of this important journey toward a sustainable and inclusive Africa. The summit’s resounding message was clear: the future of business is shared value, and we are proud to be part of this important movement.
Sustainability Week Africa
It was wonderful to be part of Sustainability Week Africa. This inaugural event was hosted by the Economist Impact in Cape Town on 24 and 25 October. African leaders came together to discuss how to accelerate Africa's journey towards sustainability.? The sessions were energetic with speakers from across the continent. The Economist moderators Vijay V. Vaitheeswaran, Ore Ogunbiyi and John McDermott? were an impressive team and essential for keeping the panellists accountable.
There were many invigorating discussions on questions we are all trying to figure out, numerous networking opportunities, and the opportunity to connecting with many inspiring leaders. Meeting people face-to-face makes such a difference, and coffee was much needed with the amount of different topics and challenges presented. It can be depressing to see, that despite the rise in renewable energy and collective efforts, emissions have risen 1,3% on 2022 levels.
领英推荐
Despite the current situation it was inspiring to meet motivated people, enjoy the energetic atmosphere, with determined delegates forging new paths by challenging the status quo with witty, incisive and challenging questions which made each discussion interesting. Globally, sustainability and ESG (Environmental, Social, Governance) disclosures are shifting away from voluntary frameworks to mandatory compliance, reflecting a growing expectation from capital providers to integrate these considerations into investment processes.
In Africa, this emphasis on responsible investment is crucial given the continent's abundant natural resources, which include nearly 30% of the world's mineral reserves and 65% of arable land. This makes Africa central to both the green energy transition and global food security efforts. However, a focus on sustainability must also prioritize local community benefits, resilience building, and climate adaptation strategies.? Carbon and biodiversity markets are important financing mechanisms for Africa. We know they are not perfect, but we need to make them work.
Some key points:
Regenerative Agriculture: Regenerative agriculture practices are gaining traction in Africa to enhance food security and sustainability. For example, companies that partner with local farmers to implement crop rotation and agroforestry can improve soil health and increase yield resilience against climate change. One challenge is the limited access to funding and resources for farmers. A potential solution lies in establishing partnerships between businesses and financial institutions to provide microloans and technical support, helping farmers adopt these practices effectively.
Biodiversity Conservation: With biodiversity experiencing a steep decline—69% of global wildlife populations have diminished since 1970—Africa faces immense pressure to protect its unique ecosystems. Recent events, such as the landmark conviction of a rhino syndicate leader in Mozambique, underline the urgent need to combat wildlife poaching. To mitigate these challenges, sustainable harvesting models for species and the development of wildlife-based economies can be explored. Governments and businesses can collaborate to create regulations that support legal, sustainable wildlife trade, ensuring local communities benefit economically without compromising biodiversity.
Intra-African Trade: Intra-African trade is vital for economic growth but remains disappointingly low, with only 16% of total exports occurring within the continent. The AfCFTA, launched in 2018, aims to change this, but its success depends on nations addressing non-tariff barriers and enhancing trade facilitation. Encouraging larger economies to engage more with their neighbours through incentive programs and reducing bureaucratic hurdles can foster growth. For example, creating a shared digital platform for trade logistics could streamline processes for small and medium-sized enterprises (SMEs).
Sustainable Procurement: Chief Procurement Officers (CPOs) face challenges such as supply chain disruptions and rising sustainability expectations. To tackle these issues, organizations can adopt innovative sustainable procurement practices, such as prioritizing local suppliers and minimizing carbon footprints. Training programs for CPOs that emphasize sustainability can also lead to the adoption of greener practices.
Water Scarcity: Water scarcity threatens about one in three Africans and is projected to affect 230 million people severely by 2025. To combat this, countries could implement efficient water management technologies and improve agricultural practices to reduce water waste. Successful regional cooperation, such as shared water management agreements, can also serve as a model for effective resource allocation and adaptation strategies.
Sustainable Tourism: Sustainable tourism could significantly boost local economies while preserving the environment. Countries should focus on developing tourism projects that emphasize conservation and community participation. Local governments can implement policies that ensure the economic benefits of tourism flow to local communities, such as creating community-owned wildlife reserves.
Empowering MSMEs: Micro, small, and medium-sized enterprises (MSMEs) account for nearly 90% of Africa’s business landscape and are critical for driving sustainable industrialization. However, they often face barriers such as lack of access to financing and markets. Improving access to capital through targeted funds or grants, along with digital platforms that connect MSMEs with larger markets, can empower these enterprises to innovate and contribute to sustainable development.
Digital Inclusion and Youth Engagement: Africa has a considerable youth demographic, with a median age of approximately 19.7 years, making it the youngest continent in the world. This youthful population is poised to play a pivotal role in driving sustainability efforts. By harnessing their energy and creativity, young Africans can implement innovative solutions to environmental challenges. Educational initiatives will be key to equipping them with knowledge about sustainability. Digital platforms and collaborations between educational institutions and tech companies can promote sustainability education in schools. Encouraging students to study sustainability-related fields will foster a future workforce ready to tackle environmental challenges.
In conclusion, while Africa faces significant challenges related to sustainability, innovative solutions abound. Collaboration between governments, businesses, and communities will be essential to leverage the continent's natural resources responsibly, promote inclusive growth, and ensure long-term environmental resilience. By fostering responsible investment, enhancing trade practices, and prioritizing education, Africa can chart a sustainable path forward those benefits both its people and its rich biodiversity. The active engagement of the youth as both learners and innovators can catalyze change, driving initiatives that address climate issues and promote sustainable development across the continent.
Client spotlight:
Some of our clients doing vital work in this sector in Africa include:
Partnerships Hub
We secured a strategic partnership with GAIA Africa. GAIA Africa is a premium business and social club designed exclusively for accomplished African women. The platform fosters leadership, collaboration, and growth by connecting members in an empowering environment. Through curated experiences, tailored services, and access to influential networks, GAIA Africa supports women leaders in achieving their personal and professional aspirations. GAIA Africa serves as a hub for innovation, mentorship, and meaningful connections, contributing to the development of women-led initiatives across diverse sectors.
We are thrilled about the strategic opportunities this partnership between Oxford HR and GAIA Africa presents. This collaboration promises to leverage the strengths of both organizations, fostering impactful initiatives and mutual growth.
Book Recommendation
Who Fears Death by Nnedi Okarofor
Nnedi Okorafor is a novelist African-based science fiction, fantasy and magical realism for both children and adults express her concepts of Africanfuturism and Africanjujuism. Okorafor often promotes young Black girls as superheroes in her work, and her writing investigates racial inequality, sexual violence, and other social issues such as the environment.