Dr. Joyce Tamale, the Co-Founder, Capital Solutions Limited
By Joyce N Tamale (CPA, PhD)
HABARI DAILY I Kampala, Uganda I Improving Uganda’s business, trade, and investment climates is critical for expanding sustainable economic growth and reducing poverty. This means that if the cherished potential is to be turned into a potent way of unchaining people from poverty, it has to be actualised.
Take an example of Africa, of which Uganda is part. This is a continent brimming with potential. While it faces significant challenges, a wave of social entrepreneurs and a growing focus on Environmental, Social, and Governance (ESG) principles are paving the way for a more sustainable and equitable future. This would turn Uganda’s fortunes right side up, reduce poverty and trigger off prosperity.
ESG refers to the criteria used by investors to evaluate companies based on their environmental, social, and governance practices, which is a solution to many environmental problems.
ESG principles, which serve as a compass for socially responsible business practices, guides organizations to operate in a manner that benefits not only shareholders.
This also benefits wider stakeholders and the environment. This can boost economic growth not only in Uganda but continent wide.
In Africa, integrating ESG considerations into social entrepreneurship is crucial for ensuring long-term sustainability and impact.
In the dynamic world of business, entrepreneurs are often consumed by the immediate challenges of starting and growing a company. It is already consuming to build an enterprise and ensuring day to day operations such as financial management, marketing, Human resource management and production to meet customer needs are met. However, in the 21st century, the landscape of entrepreneurship is evolving.
But ESG, which is the new normal, isn’t just a trend. It’s a vital component for the long-term success of new companies and entrepreneurs. ESG principles serve as a compass for socially responsible business practices, guiding organizations to operate in a manner that benefits not only shareholders but also stakeholders and the environment.
In Africa, integrating ESG considerations into social entrepreneurship is crucial for ensuring long-term sustainability and impact. As already known, social enterprises give a triple bottom line approach that is desired by ESG principles.
ESG factors include carbon emissions, diversity and inclusion, and executive compensation. Companies that prioritize ESG practices tend to perform better financially and are more sustainable in the long run. This concept sounds similar to the idea of social Entrepreneurship.
Social entrepreneurship has gained a lot of attention in recent years as a way to create positive social and environmental impact through business.
This model, which is slowly but surely being adopted in Uganda, has become an increasingly important criteria for investors who want to evaluate companies based on their sustainability and social responsibility.
Actually, social entrepreneurship is one way to address some of the social and environmental issues that are included in ESG criteria. In recent years, there has been a growing awareness among companies about the importance of ESG factors.
Almost all industries, including transportation, building design, renewable energy, retailing, etc., are seeking ways to improve their ESG performance to attract investors.
As potential future social entrepreneurs who are sensitive to the business market, we should be able to discover the opportunities within ESG.
As social entrepreneurs who are sensitive to the business market, we should be able to discover the opportunities within ESG.
Investors and financial institutions are increasingly prioritizing ESG criteria when making investment decisions. This means that social enterprises that prioritize ESG principles are more likely to attract funding and investment, which can contribute to their growth and scaling.
Finally, as Uganda and Africa in general continues to navigate its developmental challenges, the integration of ESG principles into social entrepreneurship can present a path forward towards sustainable and inclusive growth.
Dr. Joyce N Tamale is the Co-Founder and CEO Capital Solutions Limited
