In July 2025, East African CFOs gathered in Nairobi for the CFO East Africa ESG Summit, which drew over 160 CFOs from across four East African countries. As the speakers made their presentations and CFOs shared their experiences in the break-out sessions, it was clear that ESG is no longer just a buzzword but a reality in the daily lives of many CFOs.
ESG strategy is not just about compliance – it’s about business success and financial resilience. An important and very encouraging observation is the evolution from a compliance-based ESG reporting to a more purpose-driven approach.
A purely compliance-based approach is more like the cart pulling the horse, where at reporting time we scratch around for the data that we can use to fill up the investor’s quarterly reporting template. A purpose-driven approach ensures we integrate ESG planning, data-tracking, measurement and reporting into the business-as-usual and routine work. This is the only way to successfully build a robust ESG framework and achieve rigorous reporting.
As I had expected, clean energy, which is my pet topic, took up a good chunk of the discussion time. One of the points that stood out here is the fact that, when it comes to green energy transition, as is the case in most everything else, Africa is not homogenous.
The transition timeline varies dramatically across African nations. In countries like Kenya, which is already a leader in geothermal energy with close to 90 percent of energy generated from renewable sources, the focus is on scaling up existing renewable infrastructure and attracting investment in a mature market.
Conversely, in a nation like the Democratic Republic of Congo (DRC), with a significantly lower electrification rate, the challenge is to upscale investments while strategically focusing on clean energy sources. Understanding these national and regional nuances is key to effective capital allocation and risk management.
Seizing Africa's natural advantage
Africa holds some unique advantages that CFOs can leverage for long-term value creation. Our abundant solar, wind, and geothermal resources and a vast forest cover present a clear path to building a competitive, clean energy grid. These advantages present an opportunity to make leaps in energy transition and avoid the mistakes of earlier industrialisations.
When it comes to investment in energy generated, we have a charted path already with the advantage of better knowledge on the most efficient and high-return investments. As we industrialise, CFOs have a unique opportunity to lead companies in building new facilities with the latest clean technologies, avoiding the costly retrofitting challenges faced by our global peers. This is a strategic advantage that can attract sustainable foreign direct investment and create a more resilient industrial base.
A speaker at the summit posited that governments are doing their fair share through tax incentives, policy interventions and direct investment. Government policies are not just regulatory hurdles, they are catalysts for growth. We see this with the removal of VAT and import taxes on main solar equipment, a move that is aimed at increasing off-grid access. This has attracted huge investment from the private sector, where pay-go solar companies have made huge strides in rural communities all across the continent. These policy moves are complementary to rural electrification projects that are designed as public-private partnerships.
Governments are not just incentivising the green transition, they are throwing their hats into the ring through active investment. Rwanda’s significant investments in sustainable projects and supportive policies through the Rwanda Green Fund, are starting to yield early fruits. And similar initiatives exist, although with varying levels of substantive action, in Ethiopia, Kenya, Tanzania and elsewhere in the continent. These policy frameworks, incentives, tax breaks and public-private partnerships present massive investment opportunities that CFOs should explore and actively lead their organisations into exploiting. Such engagement is crucial for unlocking new revenue streams and securing project financing.
Beyond greenwashing, towards real value
Having explored government policies and initiatives to support ESG investments, CFOs at the summit challenged each other on what role the private sector must now play. The private sector's role is not just to comply with ESG mandates but to drive them. We have seen some successes, such as the growth of pay-as-you-go solar and electric mobility companies that have created new markets and served millions. These are a few examples of tangible results that should encourage more aggressive investment. Africa has a critical role in demanding that funding from foreign entities is genuine, sustainable and contributes to the local economy, not just as a carbon offset for their emissions.
For many CFOs, the primary concern is the bottom line. It's crucial to understand that the green energy transition and holistic development are not separate goals. Green energy investments present opportunities for commercially viable ventures with great promise of financial gain and economic progress. By investing in clean energy, we improve energy security, reduce operational costs in the long term and enhance our companies' appeal to a growing pool of global ESG-focused capital.
A successful green transition will be a key driver of macroeconomic stability, fostering the microeconomic conditions necessary for our businesses to thrive. CFOs at the ESG summit shared how ESG initiatives have evolved from being just a cost item, into a profitable investment in a more prosperous, stable, and profitable future for our companies and for the continent.
Ultimately, a successful green energy transition will not happen in isolation – it will be achieved alongside other key developmental goals like eradicating poverty, food security, improved health and overall economic prosperity.
