Time to flip the script on Africa

In 2022, the UN Global Compact launched the Global Africa Business Initiative (GABI) in New York, to position Africa as a destination for business, trade and investment, with an emphasis on the role of the private sector.

With the tagline ‘Unstoppable Africa’, the organisation seeks to amplify Africa’s potential through tailored, private-sector-led engagements across the globe. It holds its annual flagship event each September in New York.

Global Compact executive director Sanda Ojiambo says the plan was to make it an annual occasion right from the start.

“Africa is too big, too complex and there’s too much opportunity for this to be a one-off.”

It is important for Africa to be shown through a private sector lens and as a place of opportunity in contrast with the images of crisis, conflict and poor governance that often define it. 

“African leaders as well as private sector leaders have themselves said that we need to reshape Africa’s narrative. We need to see Africa for the opportunities that it presents. But there just wasn’t a unique enough multi-stakeholder, multilateral platform to do that,” she says.

GABI’s role is to convene, connect and catalyse the discussions that are critical for Africa’s growth. “It’s a unique platform because we bring together Heads of State, policymakers, businesses, investors, and philanthropists all at once.”

The idea is to mobilise political will, secure domestic investments, and lay the groundwork for global investments where needed.

“Earlier this year, we signed a partnership with the African Union on the sidelines of the Mid-Year Summit to mobilise businesses towards its Agenda 2063. We’ve held convenings on the ground with the Africa CEO Forum, discussing digital AI and technology for Africa; and we’ve had a couple of other mobilisations on the continent through our local networks and businesses,” Ojiambo says. 

GABI has also been the platform for important announcements such as last year’s partnership between the African Development Bank (AfDB) and Google, as well as the collaboration between She Trades and the International Trade Centre (ITC) to support women-led SMEs. Ghana’s Energy Infrastructure Plan was announced under its aegis. 

GABI’s focus is not just on convening but on ensuring accountability and tracking the progress of commitments made. “We want to make sure that GABI is a platform not only for announcements but for follow-up and accountability on actions taken,” she explains. 

GABI believes that the African development agenda itself is a commercial opportunity and that a private sector-led approach can lead to the resolution of many challenges. 

“Even when you look at the Sustainable Development Goals, from a private sector angle, those are really investment opportunities.”

GABI is focused on five key areas, one of which is renewable energy. As climate change accelerates, the need to develop more renewable sources becomes more imperative. It is also an area in which Africa has considerable potential. 

“The continent is replete with natural resources and there are very strong examples of geothermal energy generation, like in Kenya where over 90% of the energy is from geothermal sources. There is a huge opportunity for investment so we need to flip the script and not look at the continent as a victim of the climate crisis but as an opportunity.” 

Food production is another such area where with the right investment, the continent can become a powerhouse, feeding not just itself but the world. Similarly, the digital economy offers great promise for the continent, especially with its young and increasingly tech-savvy population. 

“So across the board – agriculture, energy, climate, digital and jobs – there are huge opportunities that we want to look at for business, trade and investment for the continent,” Ojiambo says. 

Ojiambo points out that the challenges Africa faces cannot be tackled on a nation-by-nation basis, or even through regional blocs alone. Whether it’s the reform of international financial architecture or advancing the African Continental Free Trade Area (AfCFTA) as a mechanism for growth, a multilateral approach is essential. 

The good news is that Africa is getting more involved in global discussions than perhaps at any time since the independence wave of the 1950s and 60s.  “You’ve seen Africa with a seat at the G20. Right now there are discussions about how Africa can become a viable member of the Security Council at the permanent level. So we’re seeing more and more of that recognition.” 

Finding the right incentives

Bringing such a diverse group of actors together to pull in the same direction is challenging, especially when trying to reform a system that has been in place since 1945, when much of the current financial architecture was crafted. 

“We’re very clear right now that we need more private capital injection into the system and that from a public sector perspective, we need to re-look at the architecture.”

The private sector’s role, Ojiambo notes, is no longer just about financing but also about finding solutions for sectors like renewables, energy, and the extractive industries. 

“Governments need to put incentives in the right places,” she suggests, citing the oil and gas industry as an example, where more incentives go into exploration than the research and development of renewable energy. 

It’s vital to build capacity and position Africa as a dynamic region with the skills, resources and the human talent needed to drive growth. “That’s why it’s so important to have African business at the table,” she stresses, explaining that only through collaboration with political leaders can Africa create an enabling environment that unlocks its full potential. 

Africa, she believes, must “flip the script” and reshape the narrative to showcase what it can contribute to the global economy.

Ojiambo is clear that GABI is not intended to be another talking shop. “We’ve seen enough of those,” she remarks, emphasising that while GABI’s flagship event serves as a kick-off for the year to curate ideas and build momentum, the real work goes beyond discussions. 

She outlines three key objectives: “Anything that is said and done must be followed through.” Second, collaborating with private sector leaders to ensure tangible on-the-ground delivery of initiatives and third, creating strong networks with other forums, such as the African Investment Forum (AIF). “We’re not a deal-making forum, but we can tie up with AIF to mobilise financing,” she says.

Ojiambo acknowledges that GABI cannot achieve these goals in isolation, given the vastness of the continent. By fostering links and avoiding overlaps, she believes everyone can play their part in driving Africa’s growth. 

She has confidence, however, in the commitment of private sector leaders and institutions to push for meaningful outcomes, but stresses the need to focus on accountability, creating an enabling environment, and ensuring that public and private sector collaboration thrives. 

“We need to make sure that the yin and the yang between the public and private sectors work in harmony, with incentives flowing in the right direction,” she emphasises.

ESG still a potent force

On a holistic level, there seems to be less focus on the Environmental, Social and Governance (ESG) principles that were so essential in discussions of company performance before the pandemic. The Wall Street Journal has reported, for example, that there has been a drastic reduction in mentions of ESG in earnings calls after a peak in 2022. 

Ojiambo however believes that ESG still remains a potent force outside the US, where it has been shaped by the unique political currents in that country. “I’m seeing very rapid advances in Latin America, Asia and within Africa – more people getting into more sustainability reporting even now. And, especially, those that are publicly listed will have global trading partners as well.” 

The true value of ESG, she argues, lies in its ability to distinguish companies that are investing responsibly and driving sustainable development. Given the UN Global Compact’s engagement with 25,000 businesses, she believes that ESG is crucial not just for business, but for financing and investing in the Sustainable Development Goals.

Of the 25,000 companies, only about 1,000 are African. “That’s far too few,” Ojiambo says. The Compact wants to attract the largest companies, along with their supply chains, into the fold. “This will bring the necessary muscle to the game,” she adds. 

To achieve this, the Global Compact is strengthening its local networks, which currently operate in 10 country chapters, with a regional hub in Nigeria. It is also fostering coalitions through not just GABI but the Africa Business Leaders Coalition, which includes 65 leaders who are driving advocacy and pushing for private sector engagement in climate issues, such as during COP27, which was hosted by Egypt. 

Partnering with other institutions, both within and outside the UN agency network, will be critical to amplifying the work of GABI and UN Global Compact initiatives. Her agency, she feels, given its global remit can play a key role in advancing South-South collaboration, business, and trade, further reinforcing the continent’s role in the global economy.

Ojiambo remains optimistic that Africa really is ‘unstoppable’. It is encouraging, she says, to have so many private sector leaders engaged and pushing investments and strong global partnerships. 

Africa is awash with mineral and natural resources and is indispensable to the green transition, the climate fight and even the SDGs. “None of them will succeed if we don’t succeed in Africa. And I think we just really need to put a focus on driving forward all of this potential that exists in Africa, with the help of the private sector,” she stresses.