Khethiwe Nkuna
Introduction: The Rise of ESG and Africa’s Missed Opportunity
Environmental, Social, and Governance (ESG) frameworks have quickly become the global benchmark for assessing sustainable business practices. Yet, across boardrooms and investment portfolios, the focus remains heavily skewed towards environmental concerns—carbon emissions, biodiversity loss, and the green transition.
By contrast, the Social pillar of ESG—the ‘S’—is often undervalued or misunderstood.
In the African context, this isn’t just an oversight—it’s a critical risk. The continent’s long-term success hinges on how well we invest in people, uphold human rights, reduce inequality, and build inclusive systems. The ‘S’ is not just a compliance requirement—it is a lever for shared value, inclusive economic participation, and long-term resilience.
What Exactly Is the ‘S’ in ESG?
The ‘S’ focuses on how organisations engage with their employees, customers, suppliers, communities, and broader society. It includes:
• Labour practices – Fair pay, working conditions, and employee rights
• Human rights – Across supply chains and business operations
• Community development – Access to services, livelihoods, and infrastructure
• Diversity, Equity & Inclusion (DEI) – Representation, opportunity, and a sense of belonging
• Social innovation – Products, services, or models that solve societal challenges
In South Africa, the ‘S’ is deeply connected to the country’s transformation agenda, including Broad-Based Black Economic Empowerment (B-BBEE) and employment equity. It also requires an intentional commitment to disability inclusion—ensuring people with disabilities are not left behind in economic development, workplace participation, or leadership pathways.
Why the ‘S’ Is Essential for Africa’s Development
1. Africa’s Youth Bulge Is a Demographic Tipping Point
Africa is home to the youngest population in the world, with over 70% under the age of 30. Yet youth unemployment and underemployment—particularly among young women and persons with disabilities—remain at crisis levels. Without deliberate social investment in education, skills development, and inclusive economic opportunities, we risk reinforcing cycles of poverty, exclusion, and instability.
The ‘S’ in ESG can help unlock:
• Skills pipelines through TVET colleges, SETA-funded programmes & QCTO-accredited qualifications and skills programmes
• Inclusive hiring, mentorship, and advancement opportunities
• Enabling environments for youth- and disability-led businesses and cooperatives
2. Inequality Undermines Economic Stability
Despite advancements in urbanisation and innovation, inequality remains stark—especially in rural areas, informal settlements, and under-resourced provinces. Structural barriers continue to marginalise not only women and young people, but also people with disabilities—many of whom face exclusion from education, employment, and public infrastructure.
Putting the ‘S’ at the centre means:
• Conducting equity audits and embedding universal accessibility and reasonable accommodation in employment and service delivery
• Building value chains that actively include SMMEs, black-owned, women-owned, youth-owned, and disability-owned enterprises
• Aligning B-BBEE scorecard contributions with genuine, sustainable impact, not just transactional compliance
It’s time for companies to move beyond box-ticking exercises, embracing the spirit of transformation over form. True transformation means making inclusion a lived reality, particularly for those most marginalised.
3. Communities Are Not Passive Beneficiaries
This is especially clear in sectors such as mining, agriculture, and infrastructure. From the Eastern Cape to the DRC, communities are demanding meaningful participation.
The “social licence to operate” must include persons with disabilities, who are too often excluded from stakeholder consultations, benefit-sharing, and development planning.
Building trust means:
• Free, Prior and Informed Consent (FPIC) in accessible formats and languages
• Transparent, disability-inclusive community benefit agreements
• Participatory design of services, products, and infrastructure that leave no one behind
Why the ‘S’ Makes Business Sense
Executives often ask, “What is the return on investment (ROI) for the Social pillar?”
The reality is: companies that ignore the ‘S’ face increased legal, reputational, and operational risk.
On the other hand, businesses that prioritise people benefit from:
• Stronger employee loyalty and retention
• Enhanced risk management through stakeholder trust
• Access to impact investment and ESG-aligned capital
• More stable, inclusive, and resilient local markets
Additionally, organisations that embrace disability inclusion tap into an underutilised talent pool, increase innovation through diverse perspectives, and create environments where everyone can thrive.
A Call for African-Centred ESG Approaches
Global ESG frameworks often fail to reflect Africa’s unique context—communal land rights, informal economies, indigenous systems, and intergenerational poverty. They also frequently overlook the intersectionality of disadvantage.
To truly build transformative ESG strategies, we must:
• Develop metrics that matter, including disability employment, universal access, and inclusive procurement
• Ground ESG in Ubuntu, where dignity, care, and solidarity guide our social contract
• Integrate B-BBEE, Employment Equity, and disability inclusion strategies into core operations—not siloed policies
• Move from outputs to long-term social returns that improve lives
Conclusion: The Social Pillar Is Africa’s Opportunity
The ‘S’ in ESG is not an afterthought—it’s a strategic imperative. It holds the key to unlocking Africa’s greatest asset: its people. All its people.
In South Africa, the ‘S’ provides a platform for organisations to go beyond compliance—to truly transform. This includes centring people with disabilities, not just in diversity metrics, but in leadership, enterprise development, service design, and opportunity creation.
Let us build ESG strategies that put inclusion at the heart of sustainable growth—not just in form, but in spirit.
Africa’s future depends on it.
Let’s Continue the Conversation
Is your organisation ready to lead in inclusive ESG? How are you building strategies that reflect the diversity and potential of Africa’s people?
Let’s connect and collaborate towards real impact.
CONTACT KHETHIWE NKUNA
