Sustainability reporting in Africa: Donor fad or development necessity?
By Richard Ndebele
Across Africa, sustainability reporting is often perceived as a donor-driven agenda, a compliance requirement imposed by international financiers or development partners. For some, the detailed disclosures of greenhouse gas emissions, gender diversity ratios, or corporate governance practices appear far removed from the pressing realities of African economies.
Yet climate shocks, financial constraints, and investor demands are proving that sustainability reporting is not a donor fad — it is a development necessity.
The evidence is sobering.
Africa is the continent most vulnerable to climate change while contributing the least to global emissions. In 2023 alone, 64 climate-related disasters were recorded across the continent, causing more than 20,000 deaths and affecting nearly 13 million people. Extreme weather events — from droughts in the Horn of Africa to cyclones in Southern Africa — have already made 2021–2025 one of the deadliest periods in recent decades, with over 15,700 lives lost in 2023 alone.
Cyclone Idai in 2019 was a stark reminder. In Mozambique, Malawi, and Zimbabwe, more than 1,000 people were killed, infrastructure worth billions was destroyed, and communities are still rebuilding.
Similarly, prolonged droughts in the Sahel and Southern Africa have left millions food insecure. The African Union estimates that climate-related losses cost African economies between 5% and 15% of GDP growth annually.
Against this backdrop, sustainability reporting becomes more than paperwork. It is a tool for risk management, accountability, and survival. Three factors illustrate why.
First, access to finance. Global investors increasingly require ESG (Environmental, Social, and Governance) disclosures as a condition for funding.
Countries such as Kenya and Nigeria have already raised capital through green bonds, while South Africa’s integrated reporting practices continue to attract investor confidence. For African firms and governments, sustainability disclosures open doors to climate finance, concessional loans, and private investment.
Second, reducing the “Africa premium.” Investors often demand higher interest rates when lending to African entities due to perceptions of weak governance and transparency. By adopting sustainability reporting frameworks — whether the Global Reporting Initiative (GRI) or the new IFRS Sustainability Standards — African countries can demonstrate credibility and reduce borrowing costs. Transparent reporting builds trust, and trust lowers the price of capital.
Third, resilience and competitiveness. For African businesses, sustainability is about continuity. Mining companies that ignore water risks, farmers that overlook soil management, and banks that dismiss governance all expose themselves to shocks. Conversely, those that anticipate and disclose risks — and act on them — are more resilient and competitive, both locally and globally.
Critically, this agenda aligns with Africa’s own vision. Agenda 2063, the African Union’s blueprint, envisions “a prosperous Africa based on inclusive growth and sustainable development.”
The Sustainable Development Goals (SDGs) likewise emphasize strong institutions, climate resilience, and social inclusion. Sustainability reporting is therefore not about external donors; it is a means of translating Africa’s aspirations into measurable outcomes.
The choice before Africa is clear. We can continue treating sustainability reporting as an external compliance exercise and remain reactive to shocks. Or we can embrace it as a necessity — unlocking finance, building resilience, and creating credibility in global markets. The statistics of lives lost, economies disrupted, and communities displaced show that the cost of inaction is far higher than the cost of disclosure.
The parting message is simple: sustainability reporting in Africa is no longer about pleasing donors. It is about protecting lives, strengthening economies, and securing the continent’s future.
Richard Ndebele is Manager: Technical, Research & Quality Assurance at the Chartered Governance and Accountancy Institute in Zimbabwe, and serves as Country Champion for the PAFA Sustainability Centre of Excellence. He writes on governance, sustainability, and public financial management in Africa.
