African businesses 'going green'
14 July 2009
Businesses in Africa recognise the need to tackle sustainable development issues, a new survey released on Monday has found.
The survey, carried out by consultancy Africapractice, found that 97% of African businesses surveyed intended to increase their investments to address sustainable development challenges over the next five years.
Furthermore, many expected new business opportunities to emerge from creating a "green" economy.
The survey sampled 103 small- to medium-sized African businesses operating across 16 African countries in a range of sectors, from agriculture to finance, extractive and support services.
The survey asked what the most challenging sustainable development issues facing businesses were.
All respondents recognised the need to address sustainable development issues, the survey found. "They are motivated for strategic business reasons rather than just the 'feel good' factor," Africapractice said in a statement.
"Reputation and brand building was the least important driver for companies to address sustainability challenges, compared to finding new business opportunities in the 'green' economy, which came in as the second most important driver."
However, there was no consensus around the main motivation for companies to address sustainability challenges.
The survey found that partnerships were also important for African businesses, with 66% citing collaboration with the public sector as the most effective way to create a positive and sustainable impact.
"This study is a vital first step to understanding how African owned businesses can play a positive role in Africa's sustainable development," said Africapractice Southern Africa director Kim Polley.
"The findings will help us support businesses to address and deal with these challenges, turning these challenges into opportunities by applying a values-based approach with a willingness to innovate and collaborate," Polley said.
According to the survey, if the private sector's interest in creating a new "green" economy was harnessed, Africa would be on the road to a less destructive and more equal economic development model.
The private sector had been a strong engine for growth and development in Africa over the past decade, the survey said.
Economic growth rates had helped to create a growing middle class and provide more people with access to basic amenities such as drinking water and health care.
According to the survey, large multinationals had been vocal on their role in driving sustainability for Africa's economy and environment, but little had been heard from African businesses and what they could do to address sustainability issues on the continent.
"This survey sought to close this gap and increase the understanding of what African businesses think about sustainability issues and how they can best address the issues," Polley said.
Sapa
