DI East Africa

𝗨𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝘁𝗵𝗲 𝗘𝗦𝗚 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗶𝗻 𝗘𝘁𝗵𝗶𝗼𝗽𝗶𝗮: Ethiopia is undergoing major economic reforms, with 8.1% growth in 2023-24 and 𝟴.𝟰% 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝗲𝗱 𝗳𝗼𝗿 𝟮𝟬𝟮𝟰-𝟮𝟱, driven by initiatives like the 𝗛𝗼𝗺𝗲𝗴𝗿𝗼𝘄𝗻 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗥𝗲𝗳𝗼𝗿𝗺 𝟮.𝟬. The launch of the 𝗘𝘁𝗵𝗶𝗼𝗽𝗶𝗮𝗻 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲 𝗶𝗻 𝟮𝟬𝟮𝟱 marks a key step in financial liberalization, alongside banking sector opening to foreign investment. Efforts to modernize sectors like digital finance and electric mobility are underway, though challenges like regional security issues, infrastructure gaps, and debt restructuring persist. 𝗜𝗠𝗙-𝗯𝗮𝗰𝗸𝗲𝗱 reforms aim to strengthen stability and attract investment. ESG integration among Ethiopian companies presents both significant potential and a strong promise of driving stakeholder action, positioning businesses as key contributors to sustainable development and resilience. The 𝗘𝘁𝗵𝗶𝗼𝗽𝗶𝗮𝗻 𝗕𝗮𝗻𝗸𝗲𝗿𝘀 𝗔𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗶𝗼𝗻 (𝗘𝗕𝗔), with support from the IFC - International Finance Corporation, has introduced Sustainability Guidelines for Banks, a major milestone in advancing ESG principles Ethiopia. Additionally, the 𝗘𝘁𝗵𝗶𝗼𝗽𝗶𝗮𝗻 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲 (𝗘𝗦𝗫) has an opportunity to champion sustainable investment and deeper ESG integration by joining the United Nations Sustainable Stock Exchanges Initiative (SSE) Initiative. 𝗗𝗲𝘀𝗮𝗹𝗲𝗴𝗻 𝗗𝗲𝗷𝗲𝗻 of Addis Ababa Chamber of Commerce and Sectoral Associations emphasizes ESG's importance in driving sustainable growth in Ethiopia, highlighting how membership organizations foster responsible business practices among companies. #ESGinEthiopia #Sustainablegrowth #EthiopiaTransformation Ndungu Njeru Enock Nyachae Klaus Lehn Christensen Helina Tilahun Bethlehem Hailu

𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗘𝗦𝗚 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝗻 𝗨𝗴𝗮𝗻𝗱𝗮: 𝗔 𝗣𝗮𝘁𝗵𝘄𝗮𝘆 𝘁𝗼 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 🌍 A Danish Industry study found that only 𝟭𝟱% of East African companies are aware of #ESG in the context of #EU regulations and investor demands. However, 𝟵𝟰% believe sustainability will become a higher priority for their businesses within the next three years, driven by sales and growth opportunities. In 𝗨𝗴𝗮𝗻𝗱𝗮 for example, ESG adoption remains slow, hampered by low awareness and the lack of a clear #framework. While some businesses have initiated isolated ESG efforts, many still lack systems for tracking and reporting impact. Despite challenges, Roofings Group leads in sustainability with a strong focus on environmental stewardship, social inclusion, and governance. It advances the circular economy by reducing waste, energy use, and emissions, aiming to plant 𝟭𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝘁𝗿𝗲𝗲𝘀 by 2030. On the social front, it champions diversity, employee training, and occupational health, earning 𝗜𝗦𝗢 𝟰𝟱𝟬𝟬𝟭:𝟮𝟬𝟭𝟴 certification. With a 𝟮𝟬𝟮𝟯 𝘀𝗼𝗰𝗶𝗮𝗹 𝗶𝗺𝗽𝗮𝗰𝘁 𝗮𝘄𝗮𝗿𝗱 and blue company certification, Roofings exemplifies sustainability leadership. According to Grace Nabakooza from the 𝗙𝗲𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗨𝗴𝗮𝗻𝗱𝗮 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀 (𝗙𝗨𝗘), Ugandan companies need to view ESG not merely as a compliance requirement but as a strategic tool for sustainable growth. #ESGinUganda #EURegulations #Sustainability Stuart Jason mwesigwa Edwin Abaasa Klaus Lehn Christensen Martin Francis Kyeyune, PhD Ndungu Njeru Enock Nyachae

𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗘𝗦𝗚 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝗻 𝗨𝗴𝗮𝗻𝗱𝗮: 𝗔 𝗣𝗮𝘁𝗵𝘄𝗮𝘆 𝘁𝗼 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 🌍 A Danish Industry study found that only 𝟭𝟱% of East African companies are aware of #ESG in the context of #EU regulations and investor demands. However, 𝟵𝟰% believe sustainability will become a higher priority for their businesses within the next three years, driven by sales and growth opportunities. In 𝗨𝗴𝗮𝗻𝗱𝗮 for example, ESG adoption remains slow, hampered by low awareness and the lack of a clear #framework. While some businesses have initiated isolated ESG efforts, many still lack systems for tracking and reporting impact. Despite challenges, Roofings Group leads in sustainability with a strong focus on environmental stewardship, social inclusion, and governance. It advances the circular economy by reducing waste, energy use, and emissions, aiming to plant 𝟭𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝘁𝗿𝗲𝗲𝘀 by 2030. On the social front, it champions diversity, employee training, and occupational health, earning 𝗜𝗦𝗢 𝟰𝟱𝟬𝟬𝟭:𝟮𝟬𝟭𝟴 certification. With a 𝟮𝟬𝟮𝟯 𝘀𝗼𝗰𝗶𝗮𝗹 𝗶𝗺𝗽𝗮𝗰𝘁 𝗮𝘄𝗮𝗿𝗱 and blue company certification, Roofings exemplifies sustainability leadership. According to Grace Nabakooza from the 𝗙𝗲𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗨𝗴𝗮𝗻𝗱𝗮 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀 (𝗙𝗨𝗘), Ugandan companies need to view ESG not merely as a compliance requirement but as a strategic tool for sustainable growth. #ESGinUganda #EURegulations #Sustainability Stuart Jason mwesigwa Edwin Abaasa Klaus Lehn Christensen Martin Francis Kyeyune, PhD Ndungu Njeru Enock Nyachae

𝗘𝗨–𝗞𝗲𝗻𝘆𝗮 𝗘𝗣𝗔 𝗼𝗻 𝘁𝗵𝗲 𝗥𝗼𝗮𝗱 𝗶𝗻 𝗞𝗶𝘀𝘂𝗺𝘂 𝗖𝗶𝘁𝘆 𝗞𝗶𝘀𝘂𝗺𝘂 𝗖𝗶𝘁𝘆 yesterday hosted the 6th workshop in the regional series of the 𝗘𝗨–𝗞𝗲𝗻𝘆𝗮 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 (EPA) sensitization forums, representing the Western region. The event brought together stakeholders from business, county governments and local groups. The 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹 𝗦𝗲𝗰𝗿𝗲𝘁𝗮𝗿𝘆, State Department for Trade Alfred Ombudo K'Ombudo, CBS officiated the event, encouraging participants to explore the opportunities presented by the EPA and establish frameworks that would enable them to fully benefit from the agreement. The Kenya-EU EPA, which took effect on July 1, 2024, is a pivotal framework aimed at boosting economic growth by allowing Kenyan goods tariff- and quota-free access to EU markets. It also establishes systems that promote: • 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻: Deepening Kenya's integration into the global economy to drive economic progress. • 𝗠𝗮𝗿𝗸𝗲𝘁 𝗔𝗰𝗰𝗲𝘀𝘀: Creating expanded opportunities for Kenyan exporters in EU markets, fostering growth in key sectors. • 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗖𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: Providing aid and technical support to help Kenya meet EPA requirements and enhance trade capacity. • 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁: Emphasizing sustainable trade practices and environmental preservation. The workshop generated valuable insights on the opportunities, challenges, and strategies for optimizing the EPA’s impact. These contributions will inform planning processes as Kenya implements the agreement to maximize its benefits. #EconomicDevelopment #ESG #SustainableTrade #EUESGRegulations #EU-EPA Delegation of The European Union to Kenya Kenya Association of Manufacturers Kenya National Chamber of Commerce and Industry Fresh Produce Exporters Association of Kenya Fresh Produce Consortium (FPC) avocado society of kenya Kenya Export Promotion and Branding Agency Ministry of Investments,Trade and Industry

𝗘𝗦𝗚 - 𝗔 𝗖𝗮𝘁𝗮𝗹𝘆𝘀𝘁 𝗳𝗼𝗿 𝗕𝘂𝗿𝘂𝗻𝗱𝗶'𝘀 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 Like many East African countries, #Burundi’s agricultural sector plays a central role in the economy, contributing over 𝟰𝟬% of the #GDP and providing employment for more than 𝟵𝟬% of the population. The country relies heavily on coffee and tea as its primary exports, which generate more than half of its foreign exchange earnings. Consequently, Burundi's export revenues—and its capacity to finance imports—are largely dependent on favorable weather conditions and fluctuations in international coffee and tea prices. Investor demands and forthcoming #EU ESG regulations mandate companies to disclose their environmental and social impacts across supply chains. The 𝗘𝗨 𝗗𝗲𝗳𝗼𝗿𝗲𝘀𝘁𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻 is expected to significantly impact agricultural exports. In response, businesses in Burundi are encouraged to adopt #ESG principles, which will not only ensure compliance with the regulation but also drive economic growth and generate #shared value. Emmanuel NIYOMWUNGERE of the Association of Burundi Employers (AEB) highlights ESG and responsible business as vital for Burundi’s sustainable future. This sentiment aligns with a study conducted by DI, which revealed that 𝟵𝟰% of East African companies believe sustainability will become a greater priority for their companies within the next three years. #ESG #SustainableDevelopment #GenderEquality #EnvironmentalSustainability #SharedValue Enock Nyachae Ndungu Njeru Klaus Lehn Christensen

We know its 🎄 but you got to read this post before meeting 🎅. Earlier this week, we had the pleasure of joining the Eastern African Grain Council and AGRA in their Public-Private Dialogue (PPD) Forum and Business-to-Business (B2B) forum in Nairobi. The PPD and B2B forum brought participants from Kenya, Malawi, Tanzania Uganda and Zambia. And had a huge emphasis on removing barriers to food trade as an avenue of improving food security. We presented insights on our collaboration with Denmark in Kenya’ Strategic Sector Collaboration Programme on Food and Agriculture, led by Pil Holm Maagaard And our shared belief that public-private sector collaboration is not only critical in achieving #SDG2, but also in improving food safety, whilst allowing the private sector to innovate, create jobs and create economic value in food systems. This collaboration also creates trust and allows private sector organizations like EAGC to play an even bigger role in equipping companies with the tools to meet regulatory requirements through in Industry Self-Regulation (ISR) model by encouraging more and effective Industry Own Checks (IOCs). Since last year, we have been working with EAGC to drive better linkage with grain-trade players. In 2023, we had an outreach imprint on over 2,000 farmers and a training footprint of over 48 employees in small and medium grain processors. In 2025, we will continue “tightening the chain,” encouraging more and deeper collaboration with players in the grains value chain. 

𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 𝗶𝗻 𝗠𝗮𝗹𝗮𝘄𝗶 Malawi faces environmental and social challenges, with agriculture contributing 𝟮𝟯% 𝘁𝗼 𝗚𝗗𝗣, 𝟲𝟮% 𝗼𝗳 𝗷𝗼𝗯𝘀, 𝗮𝗻𝗱 𝟴𝟬% of exports as the backbone of its economy. Increasing ESG demands and EU regulations require Malawian exporters to evaluate and report their environmental and social impacts. We spoke to Alexander Dzvairo from 𝗚𝗿𝗼𝘄𝘁𝗵 𝗦𝗲𝗻𝘀𝗲𝗧𝗲𝗰𝗵 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗟𝘁𝗱 𝗶𝗻 𝗠𝗮𝗹𝗮𝘄𝗶 about their efforts to enhance social equity and environmental sustainability. The company promotes #renewable energy adoption through solar power systems and #energy-efficient technologies, reducing reliance on non-renewable resources. They collaborate with suppliers to implement sustainable practices, minimize environmental impact, and uphold fair labor standards. Additionally, they tackle traditional cooking challenges by introducing clean solutions like biogas and electric induction cookers to replace charcoal and firewood.   George Khaki, Executive Director of Employers' Consultative Association of Malawi (ECAM), highlights that ESG initiatives align with Malawi's export growth efforts, offering businesses a chance to embrace sustainable practices, fostering long-term resilience. #ESGinMalawi #Sustanability Enock Nyachae Klaus Lehn Christensen Millicent Kariuki

# 🤝 partnership, joint efforts to deepen collaboration with TVET Institutions in #Ethiopia.   Last week,Addis Ababa Chamber of Commerce and Sectoral Associations took a significant step to bridge the gap between industry demands and TVET training by signing MOUs with three prominent TVET institutions in Addis ✍ . This marks a major milestone in the effort to align TVET training with industry demands. The collaboration is set to enhance skills development and entrepreneurship and address the persistent skills mismatch in# Ethiopia labour market. The partnership will also aim to foster stronger linkage between #TVET institutions and companies and enable exchange of expertise and improve the quality and relevance of TVET programs. Speaking at the event, the Head of Training and Trainers development in the Ministry of Labour and skills, Mulu Keneni, reaffirmed the Ministry's commitment to support the collaboration, which is important for economic growth and employment generation. Addis Ababa Chamber of Commerce and Sectoral Associations, Danish Industry Klaus Lehn Christensen, Ndungu Njeru. #skills.  

𝗙𝗿𝗼𝗺 ad hoc 𝗖𝗦𝗥 𝘁𝗼 integrated 𝗘𝗦𝗚 There has been a gradual but drastic shift from the usual #CSR and citizenship to a more deliberate 𝗘𝗦𝗚 𝗶𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 among Kenyan companies over the past few years. While compliance remains important, it now plays a smaller role in the broader business case for sustainability as businesses adopt ESG as a framework for long-term decision-making and sustainable growth. ESG has emerged as a top priority for businesses of all sizes, highlighting an increased emphasis on adopting and transparently reporting sustainable practices across their operations. This aligns with the findings of Danish Industry’s 2024 global ESG study, which revealed that 𝟳𝟭% of EA respondents view ESG as a top priority for the coming years, driven by emerging ESG regulations and growing investor demands. We engaged CPA Maroa Ibrahim Jackson CPA(K),CISA,CISI,MBA,CCA,CBA (F-GAFM),ACCA,ICRM of SASINI PLC, a member of Kenya Association of Manufacturers and a prominent player in the agricultural sector, to discuss their ESG practices. It’s commitment to sustainability has enhanced its brand value and market penetration, particularly in coffee and tea, achieving record performance despite market challenges. The company champions gender inclusivity with over 40% of senior leadership roles held by women and contributes significantly to Kenya’s economy, paying over Kshs. 𝟯𝟳𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 in taxes. Environmental Sustainability initiatives include a 1.5MW energy station saving 𝟮𝟱-𝟯𝟬% on power, transitioning tea factories to solar energy, and maintaining over 𝟭.𝟱 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 trees across its estates to support biodiversity. According to Joyce Njogu, MCIM, MBA - the Kenya Association of Manufacturers champions ESG practices among its members through various initiatives, fostering stronger market positions, attracting local and international customers, boosting revenues, and enhancing brand value. #ESG #Sustainability #ResponsibleBusinessPractises Enock Nyachae Klaus Lehn Christensen

𝗭𝗮𝗻𝘇𝗶𝗯𝗮𝗿, like mainland Tanzania, has seen significant growth in recent years, with substantial investments in sectors like #tourism driving its transformation. New roads and modern buildings are reshaping the island, but this rapid development has also brought challenges, including #environmental degradation, such as declining water quality from poor waste management, and #community displacement disrupting livelihoods. This prompts a critical question: how can economic development balance environmental sustainability and social inclusion? The #ESG framework offers a roadmap, addressing issues like waste management, gender equality, and community engagement. While East African companies are beginning to adopt ESG principles, awareness in the region remains low, at just 𝟭𝟱% - (Danish Industry ESG Study), underscoring the need for capacity building. Recently, 𝗭𝗮𝗻𝘇𝗶𝗯𝗮𝗿 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀 𝗔𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗶𝗼𝗻 and Zanzibar Trade Union Congress hosted a two-day workshop in Zanzibar to address youth skills development and introduce a comprehensive gender policy. The initiative is timely, given the region’s persistent gender disparities and limited employment opportunities. ZANEMA’s Vice Chair, Fatma Elia Masimba, emphasized the importance of raising #ESG awareness to drive sustainable progress in Zanzibar and beyond. We spoke with Lisenka Beetstra of 𝗘𝗺𝗲𝗿𝘀𝗼𝗻 𝗭𝗮𝗻𝘇𝗶𝗯𝗮𝗿 H𝗼𝘁𝗲𝗹 about their journey in adopting robust ESG practices. The hotel emphasizes environmental sustainability, including waste separation at the source and reducing waste by using reusable glass and refillable bottles, and training their staff on the same. Socially, they engage stakeholders regularly, supporting employees through a welfare association and health and safety measures already in place. They empower communities by aiding schools, mosques, and promoting Zanzibari arts and culture through the Emerson Foundation. They also prioritize training and hiring locals, including for managerial roles. Amid growing global challenges and volatile markets, the role of businesses in sustainable development is crucial. Embracing responsible business practices is a vital first step! #ESGinZanzibar #GenderEquality #TVET #YouthEmpowerment Enock Nyachae Klaus Lehn Christensen Millicent Kariuki Søren Bjerregaard