They also committed to a just and equitable transition that ensures their supply chains, value chains
Africa’s private sector has committed to pursuing clear investment opportunities within the climate crisis to accelerate green growth and build resilience and adaptive capacity across the continent.
In their declaration and commitment to climate action at the Africa Climate Summit (ACS23) in Nairobi, players in the sector promised to work together with governments to deliver green commitments.
“We, the undersigned private sector leaders, representing a diverse range of sectors within Africa, offer this declaration of commitment to combating climate change. We acknowledge the importance of collaboration between the private and public sectors in building resilience for green growth,” read the Private Sector Commitment on Climate Action document in part.
Their commitments touch on climate finance, green investments, decarbonisation efforts, carbon markets and transition to renewable energy.
The other subsectors and areas they expressed interest in include food and agriculture, nature and carbon sinks, adaptation, resilience and sustainability.
“We commit to establish mechanisms that scale up green investments from the private sector. We promise to adopt green and circular business models and design environmentally friendly products. We are also keen on ensuring the integration of sustainability throughout the value chains. On decarbonisation, we commit to actively seek opportunities for nature-based solutions,” read their statement in part.
On agriculture and food security, they pledged to spearhead and incentivise the creation of critical infrastructure, such as refrigeration facilities and warehouses, to reduce post-harvest losses and support market and trade opportunities.
The private sector also committed to a just and equitable transition that ensures their supply chains, value chains and local customers are first to benefit from the switch to clean energy and any form of green growth.
Besides rooting for sustainable growth and expressing willingness to invest in the emerging blue and green economies, the Africa Business Leaders Coalition presented the progress made so far in its commitments signed at COP27 in Egypt.
TABLC, a pan-African CEO-led initiative from the UN Global Compact Africa Strategy 2021-2023, provides a platform for African business leaders to have a unified private sector voice as they engage on the continent’s most pressing issues.
UN Global Compact chief executive and executive-director, Sanda Ojiambo, called for more businesses in Africa’s private sector to fulfill their climate commitments and help mitigate the crisis and build resilience.
“It’s been over 28 years of conference of parties. It’s time to act and find investment opportunities in all the transitions, from the energy transition, food systems transition and digital transition,” said Ojiambo.
"We are at a remarkable moment and it calls for strong partnerships because no one sector will find solutions to the ongoing climate crisis," she said.
“As we embark on investment opportunities, ABLC members are calling for a predictable policy environment, stability in the business environment and incentives, particularly in the renewable energy sector,” she added.
The head of Ecobank Transnational, Jeremy Awori, spoke about creating sub-Saharan Africa’s first green bond, which will channel global funding to renewable energy.
He said $13.8 million of the $382 million fund has already been dedicated to green projects, helping to close a funding gap where only 10 per cent of the capital needed to meet SDGs in Africa is sourced from within the continent.
Julius Opiyo, the board director of the International Chamber of Commerce Kenya Chapter, asked the private sector to pay close attention to emerging green investment opportunities like e-mobility, carbon markets, the circular economy and green building.
“We are playing a key role in advancing green growth and availing climate finance solutions. Sustainability is no longer an option but a necessity. We should take the lead regarding climate action initiatives,” said Opiyo.
Kenya Private Sector Alliance (KEPSA) chief executive, Carole Kariuki, noted that the alliance actively contributed to developing Kenya's Private Sector Strategy on Climate Change Solutions to underscore their unwavering commitment to climate action.
“This comprehensive strategy meticulously outlines specific actions the private sector will undertake between 2022 and 2030, aligning perfectly with the government's climate change targets,” said Kariuki.
She further noted that KEPSA’s knowledge center, "the Sustainable Inclusive Business – Kenya", is leading the implementation of the Kenya Plastics Pact, the second in Africa after the South Africa Plastics Pact.
The knowledge centre has also launched the plastic packaging recyclability guidelines, a vital step in addressing plastic pollution.
Kariuki added that KEPSA, in a strategic partnership with TradeMark Africa, has embarked on a comprehensive assessment of Kenya's progress towards a circular economy. She said the goal is to develop a comprehensive policy brief, complete with actionable recommendations to address obstacles and enhance private-sector compliance.
James Mwangi, the chief executive of Equity Bank, which is East and Central Africa’s largest financial institution, said the private sector is better placed to spearhead green growth because it’s driven by investment opportunities.
He also affirmed his organisation’s commitment to adopt green and circular business models, designing environmentally friendly products and initiatives.
“The power to solve challenges of climate change in Africa lies with the private sector. For businesses, it isn’t a cost question but an investment towards averting the damages. The country requires consistent policies and incentives,” said Mwangi.
Peter Ndegwa, chief executive of Safaricom, the largest telecommunications provider and one of the most profitable companies in the East and Central Africa region, pledged to utilise technology and digital tools in finding solutions for climate change.
He added that Africans need to unite and lead the climate change agenda through collaborative partnerships and by making clear, specific commitments.
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Private sector plenary session at the Africa Climate Summit 2023. Photo: @SandaOjiambo / X (formerly Twitter).png)
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