GOVERNANCE
2020 WILL LIKELY BE A TURNING POINT FOR
SUSTAINABLE FINANCE IN AFRICA’S MINING SECTOR The continent’s mining sector is likely
purposes of developing environmentally
to be among the adopters of sustainable
friendly student accommodation in Nairobi.
finance products, particularly as mining
By Nigel Beck, Head of Sustainable Finance for Standard Bank Group and Mark Buncombe, Head: Mining and Metals for Standard Bank Group
As corporates proactively implement measures to operate more responsibly and improve their Environmental, Social and Governance (ESG) performance, 2020 is shaping up to be a watershed year for sustainable finance in Africa
groups and their supply chains seek to
But a step change in activity in coming
demonstrate their positive societal and
months is anticipated. Standard
environmental impacts – and secure their
Bank’s sustainable finance unit has
social licenses to operate for the long-term.
seen a surge in interest from all sectors, including mining, and that
In fact, pursuing ESG policies and
momentum is expected to continue
responding to the challenges of climate
as investors demand action and
change are both seen as more important
transparency and corporates globally
priority areas than growth for the global
take more responsibility for uplifting and
mining and metals sector this year,
safeguarding society. The sharp rise in
according to law firm White & Case’s
interest, points to pent-up demand for
latest annual survey. Less than 9% of
sustainable finance solutions in Africa.
respondents are pursuing growth as their leading goal for 2020.
These unique funding solutions will play an important role in helping
While the sustainable finance market
Africa’s mining industry to overcome
has started to gain serious traction in
common challenges – such as energy
developed economies, it remains in its
supply, water treatment, environmental
infancy in Africa, with only a few notable
protection and mine rehabilitation,
deals having been executed. Among those
impending carbon taxes, community
being East Africa’s first ever green bond,
development, health and safety, and
issued in late 2019 by Acorn Group for the
resilient infrastructure development.
