Unlocking ESG financing in Africa agri - business sector
The African Agri-Business sector is gaining attention from global investors focused on sustainability and Environmental, Social, and Governance (ESG) practices. The European Union s Supply Chain Act underscores the importance of social considerations in supply chains, particularly as Africa seeks to increase exports to Western economies. CNBC Africa s discussion with Ashish Patel, Managing Partner of ESG First Fund at Aavishkaar Capital, highlights Africa s potential to not only produce but also add value to agricultural products, such as nuts and cocoa, with significant ESG implications. Investments in sustainable agribusiness, like the expansion of a macadamia nut producer in Kenya, demonstrate the potential for positive ESG outcomes. However, challenges persist, including the lack of coherent government policies, difficulties in scaling up small-scale farming, and a shortage of capital. Unlike some Asian countries, Africa lacks consistent policies and funding support for its agricultural sector. To encourage more companies to tap into ESG-focused funds, Patel emphasizes the need for proactive funding policies that prioritize sectors like agriculture. A mix of financial institutions, private funds, and microfinance institutions can provide the necessary capital for small and medium enterprises to grow. Enhancing transparency and providing clear guidelines for success in export-oriented industries will also help level the playing field for farmers and businesses seeking to embrace sustainable practices. As Africa s agribusiness sector continues to evolve, the interplay between ESG financing and sustainable operations will be crucial in unlocking the sector s full potential. By prioritizing environmental and social impact alongside financial returns, stakeholders can pave the way for a more sustainable and prosperous future for the continent s agricultural industry.
Source: cnbcafrica.comPublished on 2024-09-17
Related news
- Marketing green challenge
- Adani Green Begins Generation From The World Largest Renewable Energy Park
- Redefining luxury : How green is my expensive red wine ?
- Passive Funds Face New Restrictions as united kingdom ESG Rules Take Shape
- Our issue is with politicizing a pension , says one Oklahoma nonprofit
- What is COP27 ? What you need to know about climate summit that starts Sunday in Sharm Al Sheikh
- Business Backlash Pushes GOP to Weaken Anti - ESG Proposals
- Nordea Says 90 % of New Money Now ESG as Wealth Unit Hits Record
- BrewDog latest PR blunder is more F * Cup than World Cup | Comment & Opinion
- Environmental , Social and Governance : A Crucial Step Towards Sustainability
- GSK Anthony Kenny on climate action and driving Net Zero | The Lawyer | Legal insight , benchmarking data and jobs
- JP Morgan Jamie Dimon Defends Stakeholder Capitalism Amid Conservative Criticism
- Lost In The Desert Bud Light Hires Swamp Creatures
- Luxflag extends its activities to insurance
- COP27 Coke sponsorship leaves bad taste with green groups | iNFOnews | Thompson - Okanagan News Source