Africa’s private sector is embedding ESG into core business models, driving inclusion of youth and women as engines of growth. Programs such as Stanbic’s incubator, Unilever’s Shakti and Samsung’s Innovation Campus present ESG as strategy, not compliance; fostering skills, resilience and market access while reshaping Africa’s economic transformation.
Africa stands at a pivotal crossroads. Half the population on the continent is under 25 years of age and women account for over half of the potential workforce. This demographic profile represents both opportunities and challenges. Without targeted efforts to expand access to economic development, especially for youth and women, Africa risks falling short of its growth potential.
As public sector resources tighten and donor priorities shift, private sector players are beginning to fill a critical gap using environmental, social and governance (ESG) principles not just for compliance, but as a roadmap to inclusive business. Compliance can no longer be treated as an administrative afterthought; it must be recognized as a core strategic driver of business success according to Steven De Backer Founder and CEO of Afriwise, an African governance and legal advisory firm. Examples across the continent suggest the private sector is no longer treating ESG as a compliance checklist, but a practical framework for action embedded in business models, supply chains and workforce development.
A growing number of promising initiatives recognize youth and women as central to market growth, innovation and resilience rather than side beneficiaries. The scale of transformation required across African economies highlights the urgent need for sustained capacity building, especially in technical skills including digital fluency and enterprise management. Enhancing capacity is a cornerstone of development to enable governments to craft and execute effective strategies and empower society–including the private sector–to support, engage, manage and hold institutions accountable.
The Stanbic Bank Business Incubator in Uganda is indicative of the broader transformation. Launched in 2018, the initiative has since supported more than 11,400 entrepreneurs and over 5,700 enterprises in sectors ranging from agro-processing and clean energy to logistics and oil and gas. Over 4,000 of its beneficiaries have been women. On average, each supported business created seven new jobs, contributing significantly to employment generation and livelihood improvement. “We see ourselves as more than just trainers,” says Catherine Poran, Chief Executive of the Stanbic Business Incubator. “We link SMEs to market opportunities, help them understand and unpack these opportunities and bring them into the market so they can see where the real growth lies.”
The model addresses three persistent challenges faced by entrepreneurs across Africa: 1) the need for practical business skills, 2) the challenges accessing capital and 3) limited engagement with formal markets. The business incubator is helping to formalize businesses, connect them with procurement opportunities and build long-term resilience through mentorship programs, tailored business support and partnerships with institutions such as the Uganda Registration Services Bureau (URSB) and Uganda Revenue Authority (URA).
This practical, problem-solving approach is echoed across sectors and regions. Total Energies is embedding youth training directly into its energy infrastructure projects in Mozambique and Uganda. In Mozambique, vocational programs developed with local partners are training 2,500 youth to transition into skilled employment. The company has supported training for welders, pipeline technicians and environmental officers in the oil-producing Albertine region of Western Uganda. These initiatives are tied to local content requirements, but reflect a longer-term investment in community stability and operational continuity.
Unilever’s “Shakti” program in Kenya and Nigeria supports rural women to become micro-distributors of household products, boosting incomes and expanding rural supply chains. Unilever also participates in the TRANSFORM initiative in cooperation with the UK’s Foreign, Commonwealth and Development Office, and EY to support entrepreneurs working on sanitation, health and economic inclusion for low-income communities, with a strong focus on digital innovations for young people.
What unites these diverse initiatives is not only their reach, but the way the private sector is often setting the pace–innovating faster than public programs and shaping models of inclusion that governments and partners now learn from. From supply chains to digital skills, African businesses are demonstrating that inclusion is not peripheral; it had become a driver of competitive advantage.
The Samsung Innovation Campus in partnership with Walter Sisulu University in South Africa has emerged as a leading model of skills development for digital youth inclusion. Since its 2022 launch, the program has equipped students in South Africa with future-proof skills ranging from coding and programming to artificial intelligence and the Internet of Things via intensive training tailored to the Fourth Industrial Revolution. Its first cohort of graduates in 2023 has already joined Samsung’s global innovation network, underscoring the initiative’s commitment to building tech-ready talent across the region.
Across West and Central Africa, Nestlé is supporting inclusive entrepreneurship through its MYOWBU (My Own Business) program in 11 countries. In Côte d’Ivoire. Since 2020, more than 1,000 youth—40 percent of them women—have become last-mile distributors, bringing Nestlé products to underserved communities. Participants receive startup kits, branding, and business development support, enabling them to operate viable micro-enterprises that meet both community needs and company expansion goals. “This is how I earn money which allows me to be independent and take care of my child,” states Laurent Ahou, a young mother participating in the MYOWBU program.
Stanbic’s Business Incubator in Uganda remains one of the few financial-sector-led programs providing full-cycle enterprise development support. Its collaboration with the United States African Development Foundation (USADF) enabled the disbursement of grants to early-stage agro-processors, reducing financial risk while ensuring business training is completed before funds are accessed. The incubator also works in close cooperation with the Petroleum Authority of Uganda (PAU) to align SMEs with opportunities in Uganda’s emerging oil sector.
These efforts reflect a growing understanding that formality, compliance and clear governance are not administrative hurdles, but essential to long-term business success. As Leo Long, Managing Director at the Strategic Impact Leadership Advisory Services (SILAS), cautions, “If ESG is purely used to report or disclose, then it is useless and has missed the point. It needs to be integrated across the organization, across all levels and operations to have real impact. We seek transformation, not compliance.” Leo’s view underscores the shift from box-ticking exercises to embedding ESG deeply within core operations. Without formal registration or credible accounting systems, entrepreneurs remain shut out of supply chains, finance and public tenders limiting both business resilience and inclusive growth.
A recent Brookings Institution report stressed the crucial role of commercial actors in stimulating growth across sectors while strategic collaboration with public institutions deepens financial markets and creates stable conditions for long-term investment. Integrating ESG principles into operations, not just reporting, provides companies with opportunities to expand market access, strengthen supply chains and reduce social and operational risks affirms Caroline Sonje, ESG specialist for ICEA LION Group operating across East Africa.
As ESG principles take root across Africa, companies are finding that aligning profit with purpose is not only possible, but increasingly necessary. Companies are positioning themselves as corporate social responsibility (CSR) pioneers, anticipating future regulations, creating social impact and ensuring a sustainable competitive advantage with investments in the skills, networks and long-term potential of young people and women across Africa notes Eva Sessou, a chartered accountant and director of audit and assurance at Deloitte based in Lomé, Togo.
These examples signal a broader shift. African companies are no longer waiting for governments or donors to dictate inclusion strategies. By embedding ESG into operations, the private sector is showing that social responsibility can drive competitiveness, stability and long-term growth. Inclusive business is no longer peripheral, but central to how forward-looking firms operate with youth and women integrated as core contributors to market growth and resilience.
Meaningful integration enhances market resilience, diversifies supply chains and strengthens stakeholder trust. As ESG principles take root, businesses that align commercial goals with inclusive development are positioning themselves at the forefront of Africa’s economic transformation, demonstrating that private sector leadership is essential to the continent’s long-term competitiveness.
About the Author
Christopher Burke is a senior advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda. With over 30 years of experience, he has worked extensively on social, political and economic development issues focused on governance, the environment, agriculture, extractives, public health, communications, community mobilization, advocacy, peace-building and international relations in Asia and Africa.
