2020 will likely be a turning point for sustainable finance in Africa’s mining sector

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.

The continent’s mining sector is likely to be among
the adopters of sustainable finance products, particularly as mining groups and
their supply chains seek to demonstrate their positive societal and
environmental impacts – and secure their social licenses to operate for the
long-term.

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In fact, pursuing ESG policies and responding to the
challenges of climate change are both seen as more important priority areas
than growth for the global mining and metals sector this year, according to law
firm White & Case’s latest annual survey. Less than 9% of respondents are
pursuing growth as their leading goal for 2020.

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While the sustainable finance market has started to
gain serious traction in developed economies, it remains in its infancy in
Africa, with only a few notable deals having been executed. Among those being East
Africa’s first ever green bond, issued in late 2019 by Acorn Group for the
purposes of developing environmentally friendly student accommodation in
Nairobi.

But a step change in activity in coming months is anticipated.
Standard Bank’s sustainable finance unit has seen a surge in interest from all
sectors, including mining, and that momentum is expected to continue …read more

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Source:: MediaCraft

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