“The significance of Environmental, Social and Governance (ESG) disclosure in attracting financing for sustainable development in Africa cannot be overstated. It is no longer optional; it is essential for Africa to thrive in the 21st century,” said Solomon Quaynor, Vice-President of the African Development Bank Group, during the opening of the inaugural Africa ESG Forum in Abidjan, Côte d’Ivoire.
The two-day event, 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, leading to the creation of a centralized Africa ESG Information Disclosure Hub and the integration of ESG principles into development strategies across the continent.
Quaynor emphasized the urgency of robust ESG practices, stating, “Sustainable development requires significant financial investments, which depend on trust, transparency, and accountability.” He pointed out the challenges Africa faces, including low awareness of ESG’s importance, inadequate data collection infrastructure, and fragmented disclosure standards that could hinder access to global capital markets.
By improving data availability and promoting best practices, Quaynor believes stakeholders can enhance engagement and build greater trust between investors and businesses, essential for developing a sustainable finance ecosystem.
Frederic Wiltmann, Head of the Project Team at MCDF, highlighted ongoing capacity-building programs focused on sustainable investment, including the Disclosure Hub initiative launched during the forum.
The opening day included discussions on developing an African ESG taxonomy and insights into the global ESG disclosure landscape. Lebogang Senne, Technical Director of the Pan African Federation of Accountants, noted opportunities for Africa to lead in sustainability reform, emphasizing the establishment of a Centre of Excellence to promote international standards.
Wakesho Sonje of ICEA LION GROUP discussed the Nairobi Declaration for Sustainable Insurance, which drives ESG integration in the insurance sector, with 219 members across 36 countries committed to sustainable principles. She also mentioned innovative products like parametric insurance for climate-related risks and partnerships like the African Development Bank’s Africa Climate Risk Insurance Facility for Adaptation (ACRIFA).
Nearly 100 delegates attended the event in person, with an additional 400 participating online, demonstrating a strong commitment to addressing the role of ESG disclosure in promoting sustainable development across Africa.
Day two will feature discussions on the challenges and opportunities in Environmental, Social and Governance reporting, including a panel with representatives from various financial institutions discussing investor expectations.
