https://www.engineeringnews.co.za
Africa|Business|Energy|Environment|Projects|Sustainable
Africa|Business|Energy|Environment|Projects|Sustainable
africa|business|energy|environment|projects|sustainable

Transformational investing a challenge for developing nations – investment panel

14th June 2021

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

Font size: - +

Africa presents a unique case for the type of transformational investing that is required for sustainability, to meet the United Nations’ Sustainable Development Goals (SDGs) and to achieve net-zero carbon emissions by 2050, according to panellists participating in a Sanlam Investments Forum on June 14.

Harvard Business School representative Euvin Naidoo, speaking in his personal capacity, said that the world appeared to be behind on its ambitions to reach and meet some of the SDGs and that tough changes would need to be made.

Changing people’s behaviour is what is fundamentally required on both a national and individual basis to ensure current and future investments go into the type of projects that will advance the SDGs and environment, social and governance upliftment, he added.

“This will be an ongoing journey . . . particularly when there are multiple stakeholders, across multiple geographies, all at different stages of development,” he said.

Naidoo noted that although issues differ widely on a region-by-region basis and especially between developed and developing regions, some challenges are shared, and that Covid-19 was a great example of an influence that levelled out the playing field, as the world faced a single main challenge at the same time.

DIFFERENT MINDSETS

Sanlam Investments CEO Nersan Naidoo commented that, in terms of addressing certain development and investment matters, there were differences in the priorities of countries.

In terms of climate change, the panel suggested that individuals from developing nations would rather prioritise investment into projects that address their more immediate needs, as opposed to investments into projects to reduce carbon emissions in the long term.

This is because, and in Africa particularly, many citizens rely on fossil fuels as a source of energy for heating and cooking, and taking this fuel away could result in hardship.

“You simply cannot shut [fossil fuel reliance] down and transition to clean energy immediately [in developing nations like Africa],” Nersan Naidoo said.

As such, he said awareness needed to be raised on both fronts of the investment scale, from the investors themselves on the needs and priorities of the people the investment will impact, as well as for the people the investment is aimed at helping.

Nonetheless, Climate Fund Manager CEO Andrew Johnstone said changes were already under way in the investment sector.

“. . . Twenty years ago, people looked at investment opportunities on the basis of their return to make their decision based on their risk tolerance, but since the evolution of the SDGs, and certainly post-Covid-19, is the emergence of purpose investing,” he stated.

Currently, Johnstone notes, large institutions, governments and even private individuals were looking at purpose investing. Whether they be into net zero investing or sustainable investing, there is a greater sustainability purpose attached to every rand that is spent.

Such investment was positively impacting on poorer communities in the same way it was positively impacting on more affluent communities.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 24 May 2024
Magazine round up | 24 May 2024
24th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.334 0.395s - 159pq - 2rq
Subscribe Now