South Africa and Kenya are leading Africa’s transition to sustainable finance, as highlighted in the World Wide Fund for Nature’s (WWF) inaugural Sustainable Banking Assessment (SUSBA) for Africa Report 2025. The assessment, which evaluated 25 banks across eight African nations, including South Africa, Kenya, Tanzania, Namibia, Zambia, Cameroon, Gabon, and the Democratic Republic of Congo, reveals that South African banks achieved an average Environmental, Social, and Governance (ESG) integration score of 50.1%, while Kenyan banks scored 43.7%. These countries are key players in adopting and reporting on sustainable finance through ESG principles.
The report emphasizes the steps financial institutions in South Africa and Kenya are taking to integrate ESG factors. In South Africa, the South African Reserve Bank has initiated measures to incorporate ESG factors and address climate-related risks in the financial sector. Commercial banks are also developing products to finance renewable energy and sustainable infrastructure, contributing to the country’s transition to a low-carbon economy. In Kenya, the Kenya Green Bond Programme and the Sustainable Finance Initiative by the Kenya Bankers Association are promoting sustainable finance and aligning with global standards.
Banks in Tanzania, Namibia, and Zambia have made moderate progress, while those in Gabon, Cameroon, and the Democratic Republic of Congo are still in the early stages of ESG adoption. Despite these advances, the report identifies areas for improvement across the continent. Notably, 84% of African banks fail to disclose their portfolio greenhouse gas emissions, and a disconnect exists between banks’ strategic goals and their leadership’s commitment to sustainability. While 72% of banks incorporate sustainability into their strategies, only 52% address responsible lending in leadership declarations. These findings highlight the need for greater transparency and commitment within the African banking sector.
The WWF urges African banks to enhance climate risk management, transparency, and nature-related strategies to support financial stability and a just transition. South Africa and Kenya’s leadership provide a model for other African nations, demonstrating how sustainable finance can drive green development and meet global environmental demands.
