Digging for alignment: Africa’s ESG crossroads

Environmental, social and governance (ESG) considerations have become central to the legal and commercial landscape of global mining, shaping investor risk appetite, regulatory compliance and community engagement. For Africa, home to vast reserves of critical minerals, the question is no longer whether to integrate ESG, but how, and under which legal framework.

20 May 2025 3 min read Mining & Minerals Alert Article

At a glance

  • When it comes to environmental, social, and governance (ESG) considerations, Africa’s goal should not be mere compliance, but legal and normative leadership.
  • The Africa Mining Vision, introduced by the African Union in 2009, offers a platform for Africa to shape – not just follow – global ESG standards. But this will only be possible if stakeholders embrace it, ratify it, and give it life through law and practice.
  • Mining companies should engage proactively. Transparent ESG practices reduce litigation risk, safeguard the social license to operate, and enhance access to climate and development finance.

Two dominant international initiatives, the 2006 Initiative for Responsible Mining Assurance (IRMA) and the International Council on Mining and Metals (ICMM), established in 2002, have served as some of the most used benchmarks for ESG in the mining sector. Their ethical sourcing criteria, measurable performance indicators and thirdparty verification mechanisms are widely recognised. The proposed merger of these standards into the Consolidated Mining Standard Initiative by 2026 seeks to simplify compliance and harmonize global expectations.

Yet, for African states and smaller mining houses, these frameworks are often viewed as externally imposed, with limited contextual sensitivity or participation by African stakeholders. This has led to questions about their suitability, enforceability and legitimacy on the continent.

The African Union introduced the Africa Mining Vision (AMV) in 2009, an indigenous policy blueprint seeking to consolidate the myriad of mining initiatives churned out since the 90s and to leverage Africa’s mineral resources for inclusive development. Its operational arm, the African Minerals Governance Framework (AMGF), offers a more holistic, development driven approach to mining governance, covering six pillars, including contract transparency, environmental accountability and small scale mining inclusion.

Although there is overlap between the AMGF and global standards like IRMA and ICMM, the AMV is legally and politically distinct. It embeds the continent’s values of sovereignty, equitable growth and resource nationalism. The AMV is also strategically aligned with the African Continental Free Trade Area, reinforcing its potential as a legal and economic cornerstone for Africa’s trade integration and industrialisation agenda.

However, implementation remains a challenge. By 4 February 2025, 24 out of 54 African countries were in various stages of implementing the AMGF. Without widespread implementation, the framework risks being viewed as aspirational rather than authoritative. A perceived duplication with international standards could also explain this hesitancy. Yet this overlap may in fact ease adoption, especially where mining companies already subscribe to global ESG regimes.

Notably, African financial institutions are stepping up in ESG integration. The Absa Africa Financial Markets Index 2024 reveals ESG performance improvements in 23 African countries underpinned by regulatory reforms, disclosure mandates and sustainability linked financial instruments. These shifts are increasingly codified in national financial, environmental and corporate laws laying the groundwork for enforceable ESG obligations.

Despite these advancements, global ESG momentum appears to be tumultuous, particularly in developed countries. Several multinationals have retreated from ESG obligations amid economic and political uncertainty.

This presents a dual challenge and opportunity for Africa. While global enthusiasm ebbs and flows, Africa has the opportunity to assert normative leadership. Legal professionals have a critical role to play in translating policy into binding obligations. This includes embedding ESG clauses into mining agreements, aligning domestic law with the AMV and ensuring meaningful enforcement through administrative and judicial channels.

Mining companies, too, must engage proactively. Transparent ESG practices reduce litigation risk, safeguard the social license to operate, and enhance access to climate and development finance. Whether through AMGF or global standards, adoption signals a commitment to accountability and resilience.

Ultimately, the continent’s goal should not be mere compliance, but legal and normative leadership. The AMV offers a platform for Africa to shape, not just follow global ESG standards. But this will only be possible if stakeholders embrace it, ratify it, and give it life through law and practice.

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