African businesses can contribute to the economic development of their host economies by deliberately seeking to create social value. Market-based solutions to social problems have been found to produce optimal public goods. And even by simply pursuing excellence in the normal course of business, a private goods firm could create social value similarly. Incidentally, Africa is ideally suited for global, pan-African and local firms looking to create social value at scale.
| Status of the Sustainable Development Goals in Africa | ||
| Goal | Description | Current status |
| 1 | No poverty | 2030 poverty target will not be met by any African region other than North Africa. In absolute numbers, poverty has increased. |
| 2 | Zero hunger | With the exception of North Africa, food insecurity in Africa persists at a rate of over 25% |
| 3 | Good health and well-being | Under-five mortality rates are highest in Africa and well above the global average |
| 4 | Quality education | 100% primary enrolment rate by 2030 likely if effort sustained. More than 50% of African countries already have over 90% primary enrolment rate. |
| 5 | Gender equality | Sub-Saharan Africa average greater than global. Africa leads the world in appointing female legislators. |
| 6 | Clean water & sanitation | Access to improved drinking water within a 30-minute round trip is below world average and off-target |
| 7 | Affordable & clean energy | Half of Africa has electrification rates of less than 40%. North Africa on track to achieve 100% electrification by 2030 |
| 8 | Decent work & economic growth | Over 40 African countries have unemployment rates of over 5%. |
| 9 | Industry, innovation & infrastructure | Internet usage in Africa remains very low. Nearly half of African countries have internet access of less than 20%. |
| 10 | Reduced inequalities | Growing evidence shows Africa is one of the most unequal regions in the world. In fact, inequality worsened in 25 African countries between 2000 and 2015. |
| 11 | Sustainable cities & communities | Africa is relatively less urbanized. 13 countries have formulated and 21 are in the process of implementing national urban policies. |
| 12 | Sustainable consumption & production | No data available on any of the indicators |
| 13 | Climate action | Africa is the best performing region in the world when it comes to CO2 emissions. |
| 14 | Life below water | No data available to assess progress |
| 15 | Life on land | Good amount of protected land dedicated to supporting diversity. With focused policy interventions, 2030 target could be met. |
| 16 | Peace, justice & strong institutions | Number of deaths owing to conflict or terrorism in Africa is significantly higher than the global average. |
| 17 | Partnerships for the goals | More than half of African countries have a national statistics plan that is fully funded and being implemented. |
Source: The Sustainable Development Goals Center for Africa (2019). Africa 2030: Sustainable development goals three-year reality check. Kigali: SDG Centre for Africa. Retrieved from http://www.acsd.africa/static/site/pdf/africa/2.pdf
My SDGs-SVC-Development model is a simple but encompassing framework that guides firms on how they could easily help with filling the continent’s myriad developmental gaps and needs. It relies on the United Nations’ Sustainable Development Goals to scope the continent’s development needs. Relying on various literature, I show how aiming for the SDGs creates social value. I also highlight the unique African case where but for increased engagement by all stakeholders, especially the private sector, targets for the SDGs are not likely to be realised.
How is Africa a better place by your firm being here? How can you use your firm’s expertise to solve these social problems?
How is Africa a better place by your firm being here? How can you use your firm’s expertise to solve these social problems? These are the pertinent questions my SDGs-SVC-Development model hopes to enable firms operating on the African continent scope and answer with action.
Since studies on the relationship between business and society in Africa is relatively scant, the article’s continental bias is apropos. In Mauritius, a synergistic relationship between business and government underpins its relatively shared prosperity. Vodafone’s M-pesa in Kenya increased financial inclusion, helped in reducing poverty and is now being replicated across the world. Coca-Cola’s usage of its cold logistics and last mile distribution infrastructure to transport medicines and vaccines is another excellent example of social value creation.
I also highlight the risks inherent in the provision of social services or public goods by the private sector. Under the guise of social value creation, firms have instead resorted to value extraction in many instances.
With more than 400 companies on the continent earning at least US$1 billion annually, the US$500 billion to US$1.2 trillion annual SDGs financing gap for Africa could easily be met if most firms on the continent (if not all) adopt a social value creation mindset.
Beyond financing, firms could also provide expertise to make up for the identified lack of capacity in the civil service and civil society and inadequate data in many African countries.
Additionally, firms could also create social value by virtue of their product and services. And even when firms are not involved in such naturally SVC-themed ventures like sustainable agriculture, water infrastructure, renewable energy and so on, they could easily create social value by simply conducting their operations in an ethical and sustainable manner.
References and figures are available in the original article viz. https://rafiqraji.com/2021/03/21/social-value-creation-african-firms-the-sdgs/
