Banks in South Africa and Kenya lead Africa in the adoption and reporting of sustainable finance through Environmental, Social and Governance (ESG) integration with aggregate average scores of 50.1% and 43.7%, respectively. Tanzania, Namibia and Zambia scored 37.7%, 21.1% and 19.3%, respectively while Gabon, Cameroon and DRC achieved average scores of below 10%.
According to WWF’s inaugural Sustainable Banking Assessment (SUSBA) for Africa Report 2025, Kenya and South Africa successes are largely due to supportive regulations and growing institutional commitments. The Central Bank of Kenya has been instrumental on this front.
In April of 2025, CBK released taxonomy and a climate risk disclosure framework as part of green finance tools for the banking sector to promote more sustainable investments and encourage the shift to a low-carbon economy.
Economists say that African economies and their central banks need to transform the financial system to mobilize investments to address the climate crisis, which is expected to hit agriculture, water, energy and tourism in Kenya, denting economic output by more than 7% by 2050 if the country does not take action.
The inaugural sustainable assessment evaluated ESG integration in 25 banks across Cameroon, Gabon, Kenya, Namibia, South Africa, Tanzania, the Democratic Republic of Congo, and Zambia.
The report reveals that most banks in Africa are increasingly embracing regulatory and industry guidelines and hiring more ESG professionals to embed sustainable finance practices and drive a green development and transition amid growing demand for sustainable products.
Despite the increased adoption of ESG integration in sustainable finance, the report shows that while a majority of banks (72%) incorporate sustainability in their core strategies, nearly half (48%) fail to provide commitments to sustainable finance practices. This misalignment between ESG integration and leadership, the report states, is a missed opportunity in sustainable finance for banks and regulators.
It further notes that the financial sector’s integration of nature-related considerations also lags behind its progress on climate strategies, with most of the African banks failing to disclose portfolio greenhouse gas emissions and only a few acknowledging nature-related risks. The assessment also found that only 8% of banks have tailored E&S policies in socially and environmentally sensitive sectors.
