Nontobeko Ndhlazi is Group Chief Financial Officer at WIPHOLD.
In the African context, Environmental, Social, and Governance (ESG) considerations are not merely instruments for risk mitigation, as is often the case in Western frameworks — they are catalysts for inclusive growth, social upliftment, environmental preservation, and long-term prosperity. As the Africa Wealth Report 2025 highlights, sustainable wealth on the continent depends on harnessing all sources of human capital and natural resources. African women are central to this vision.
Whether managing natural resources in rural communities, mentoring the next generation of female leaders, or serving on corporate boards and in government, women are indispensable to achieving Africa’s development goals through ESG. Their empowerment must be intentional, strategic, and holistic to advance social equity and strengthen the economic resilience and competitiveness of African nations in an evolving global economy.
The term ESG and the concept of ESG principles were formally introduced to the mainstream in the 2004 UN report Who Cares Wins, which sought to integrate ESG matters into the financial markets. The principles of ethical and socially responsible investing are particularly relevant to Africa, where there are substantial development needs as well as plentiful opportunities. African women’s unique roles as land stewards, community leaders, and entrepreneurs make them natural custodians of ESG values, and they should be central in driving ESG strategies on the continent.
African women, particularly those in rural areas, play a crucial role in the broader agricultural sector. By its very nature, the subsistence farming that most rural African women participate in necessitates the careful use of natural resources. They are often involved in strategic decisions regarding land use, fertilization, crop rotation, and water conservation. For example, in the Eastern Cape province of South Africa, where historically many able-bodied men left their rural homes to find work in the mines, the women remained to work the land to feed their families and generate extra income from surplus produce, making crucial decisions regarding land use to ensure long-term viability. Through these practices, many African women have developed an inherent understanding of environmental sustainability, making them de facto environmental managers.
However, the disproportionate burden that global heating and the climate crisis are imposing on the continent significantly affects the livelihoods of small-scale farmers. Greenpeace’s Weathering the Storm report details the projected impact of more intense and more frequent extreme weather events (droughts, floods, cyclones, and heatwaves) on the continent, with small-scale farmers naturally being the least able to recover. This leads to food insecurity and destabilizes rural economies. To address these issues it is vital to integrate rural women’s indigenous knowledge with modern data and resources. Strengthening their resilience through education, funding, and tools will protect their livelihoods and enhance the environmental sustainability of agriculture across the continent.
Urban migration poses another environmental and social challenge. A report on urban migration trends published back in 2014 by the International Organization for Migration estimated that by 2025 more than half the population of Africa would be living and working in urban centers compared to 14.5% in 1950, 28% in 1980, and 34% in 1990. The actual urbanization rate in 2023, according to a report by Deutsche Welle was around 43%. And while this confirms that Africa remains largely rural, the pace at which urbanization is occurring is startling. A robust, sustainable rural economy, supported by ESG-aligned funding and capacity building could help stem this trend, and empowering rural women is critical to this effort.
Africa has the youngest population in the world, and if properly harnessed this could be a powerful advantage. The full potential of this social dividend, where approximately half of Africa’s youth are women, holds immense possibilities. However social and economic inequalities and gender disparities continue to limit the prospects of many young African women.
Realizing the potential of this cohort requires an empathetic understanding of the issues they face so that solutions proffered are practical, focused, and grounded in lived realities. Key strategies include tailored mentorship and coaching. Traditional mentoring relationships, in which older women support younger ones, have proven effective. However, models where mentors are more experienced but closer in age to mentees allow for better relatability and relevance and could prove highly impactful in the African context. This approach is proving successful in some South African private schools, where final-year scholars are paired with young alumni who are pursuing careers in their fields of interest, particularly because they are able to provide their mentees with more relatable and credible advice than that offered by older adults in their lives.
In many African communities, women already serve as informal leaders, spearheading local projects and social initiatives. These roles must be elevated through access to financial resources, skills development, and leadership training. Closing the skills and resource gaps enhances the leadership quality and accountability of these women, ultimately contributing to stronger, more cohesive communities.
Africa’s governance challenges are well-documented. Corruption in both public and private sectors has weakened institutional trust and constrained economic growth. Combating this requires renewed commitment on transparency, ethics, and inclusive governance. Research shows that gender diversity in leadership improves both operational and financial performance. Diverse teams are more innovative and bring broader perspectives to decision-making.
Meaningfully including African women in sufficient numbers in leadership roles across government and business is strategic as well as just. High emotional intelligence, often found in women leaders (as evidenced by a Korn Ferry/Hay Group study), is a key trait of effective leadership. Women tend to manage interpersonal relationships with empathy, honesty, and respect, ultimately leading to healthier organizational cultures. This type of leadership was exemplified by former Liberian president, Nobel Laureate Ellen Johnson Sirleaf, Africa’s first democratically elected female head of state. She steered her country through reconciliation and recovery after more than a decade of civil war resulting in her winning the Nobel Peace Prize in 2011. And thus, African women must be elevated into decision-making positions not just to meet quotas but to ensure ethical leadership and accountability. This is essential if African countries are to thrive economically and politically on the global stage.
By investing in women, recognizing their existing contributions, and ensuring they have a seat at the table in shaping policies and practices, ESG in Africa can transition from concept to catalyst — unlocking the continent’s vast human and natural potential.