Last year was a significant year for Africa on matters of ESG and Sustainable Development. Africa presented a unified voice with prioritized implementation; development-centered just energy transitions and fair climate financing. Though some of the continent’s needs were addressed, resolutions still fell short of the binding commitments formulated at the Paris Climate Accords.  

As we move into 2026, Africa’s ESG landscape has grown and is transitioning from ‘Voluntary’ to ‘Rigorous’ reporting as a core requirement of financial disclosure. Most countries have set mandatory reporting deadlines for 2028, though some like Tanzania, began as early as 2025. Africa’s readiness to adopt International Sustainability Standards Board (ISSB) standards is in question with most early adopters being financial and audit entities. This adoption has shown a willingness and commitment to ESG framework incorporation though governments should focus more on implementation of policies and procedures from both the public and private sectors. 

Most huge African economies have established clear regulations and timelines for mandatory disclosures, but this move has been piloted minimally across the continent.  Kenya’s mandatory disclosure began in January 2026, with Public Interest Entities (PIEs) in their first mandatory reporting cycle, with a 2028 timeline for large enterprises. Tanzania’s disclosure was introduced in January 2025 with entities required to comply with IFRS S1& S2 standards, with their annual reports required to cover Scope 1 and 2 emissions. Other countries like Egypt have fully incorporated full mandatory reporting requirements by aligning companies with TCFD regulations.  

Early 2026 research has shown a slow readiness to adoption with financial and multi-national sectors being ahead with broader corporate sectors facing hurdles. One way of moving past this hurdle is the introduction of ‘Readiness Assessments’ like Kenya, Ghana and Nigeria, to allow for companies to have data, proper compliance policies and governance structures in place before filing and reporting.  This ensures that entities are not just working on timelines but actively building the required frameworks for reporting.  

Much of Africa’s value and supply chains include smallholder farmers and informal traders, and this is a huge skills gap. With low literacy levels, there remains a critical shortage of ESG certified professionals who can navigate complex issues of carbon sequestration, accounting, or features like Double Materiality.  By using ESG Data Entry mobile apps, we could allow small scale suppliers to report on basic metrics like fuel or fertilizer use. Compliance with international standards like GLOBAL G.A.P and CBAM is a good path for the formal sectors, especially those in the Import – Export business.  

With Scope 3 emissions contributing to 70-90% of Africa’s emissions, tracking especially against fragmented supply chains is difficult. A shift to primary data collection is a huge need to do and this can be achieved by automating Data Pipelines that integrate ESG modules into their existing ERP systems. 

With Africa being a low emitter of GHGs, a key deliverable for this is increasing our focus and priority to the Social and Governance pillars that align with the AU’s Agenda 2063. These pillars are meant to reflect developmental priorities in Africa rather than Western climate concerns. We should consider issues like youth employment through green financing, spending on local SMEs, incorporation of TNFD to protect biodiversity, and embedding ESG in governance and policy formulation frameworks.  

2026 is a great year for Africa’s evolution on ESG and Sustainable Development. We should invest more in ESG tech and create policies in governance to support and mitigate ESG risks and safeguard the continent’s path to the future. 

Is Africa Ready for ESG Reporting? 

Last year marked a significant moment for Africa in the areas of ESG and sustainable development. The continent presented a more unified voice, prioritising implementation-focused outcomes, development-centred energy transitions, and fair climate financing. While some of Africa’s needs were addressed, the resulting resolutions still fell short of the binding commitments envisaged under the Paris Climate Accord. 

As we move into 2026, Africa’s ESG landscape continues to evolve, shifting from largely voluntary disclosures to more rigorous reporting as a core element of financial transparency. Most countries have set mandatory reporting deadlines for 2028, although some, such as Tanzania, began implementation as early as 2025. Questions remain around Africa’s readiness to adopt the International Sustainability Standards Board (ISSB) standards, with early adoption largely concentrated within financial institutions and audit firms. While this signals growing commitment to ESG integration, greater emphasis is needed on implementation—particularly through clear policies and procedures across both the public and private sectors. 

Several of Africa’s largest economies have established regulatory frameworks and timelines for mandatory ESG disclosures, although adoption remains uneven across the continent. Kenya commenced mandatory disclosure in January 2026, with Public Interest Entities (PIEs) entering their first reporting cycle and large enterprises expected to comply by 2028. Tanzania introduced mandatory disclosure requirements in January 2025, requiring entities to report in line with IFRS S1 and S2 standards, including Scope 1 and 2 emissions. Egypt has also made notable progress by aligning corporate reporting obligations with the Task Force on Climate-related Financial Disclosures (TCFD). 

Research conducted in early 2026 indicates that overall readiness remains slow. Financial institutions and multinational companies are leading adoption, while broader corporate sectors continue to face structural and capacity-related challenges. One approach to addressing these gaps is the introduction of ESG readiness assessments, as seen in Kenya, Ghana, and Nigeria. These assessments allow companies to establish data systems, compliance policies, and governance structures before formal reporting begins. This approach shifts the focus from meeting deadlines to building sustainable reporting frameworks. 

Africa’s value and supply chains are heavily reliant on smallholder farmers and informal traders, presenting a significant skills and capacity gap. Low literacy levels and a shortage of ESG-certified professionals hinder effective engagement with complex concepts such as carbon accounting, sequestration, and double materiality. Digital solutions, including ESG data entry mobile applications, could enable small-scale suppliers to report on basic metrics such as fuel and fertiliser use. For more formal sectors—particularly import-export businesses—alignment with international standards such as GLOBALG.A.P and the Carbon Border Adjustment Mechanism (CBAM) offers a practical pathway to compliance. 

Scope 3 emissions account for an estimated 70–90 per cent of Africa’s total emissions, making accurate tracking particularly challenging given fragmented supply chains. There is a growing need to shift towards primary data collection, supported by automated data pipelines that integrate ESG modules into existing enterprise resource planning (ERP) systems. 

Given Africa’s relatively low contribution to global greenhouse gas emissions, greater emphasis should be placed on the Social and Governance pillars of ESG, in line with the African Union’s Agenda 2063. These pillars better reflect the continent’s development priorities. Key focus areas should include youth employment through green financing, increased spending on local SMEs, the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) to protect biodiversity, and the integration of ESG considerations into governance and policy frameworks. 

2026 represents a pivotal year in Africa’s ESG and sustainable development journey. Increased investment in ESG technology, alongside stronger governance policies, will be critical in mitigating ESG risks and safeguarding the continent’s long-term development trajectory.