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 From compliance to strategy : Drivers, barriers, practices and outcomes influencing ESG risk integration in sub-Saharan Africa
Conference paper   Open access

From compliance to strategy : Drivers, barriers, practices and outcomes influencing ESG risk integration in sub-Saharan Africa

Varaidzo Denhere
2026
Handle:
https://hdl.handle.net/10210/519701

Abstract

ESG Risk Strategic Integration Compliance Corporate Governance Environmental Social and Governance (ESG) Sustainability Sub-Saharan Africa
As global attention shifts from regulatory compliance toward strategic risk management, organizations are increasingly expected to integrate risk considerations into core business processes. In sub-Saharan Africa, where businesses face multifaceted and rapidly evolving risks, the transition from a compliance-oriented approach to a strategic one remains inconsistent and insufficiently examined. Focusing on both large corporates, small and medium-sized enterprises in Sub-Saharan Africa, this study explores the drivers, barriers, practices, and outcomes that shape the integration of risk into corporate strategy across the region. Employing a qualitative methodology based on an extensive literature review and document analysis, the research identifies key internal and external factors influencing this shift. Findings reveal a growing recognition of the strategic value of risk integration; however, progress is constrained by regulatory fragmentation, capacity limitations, and inadequate resources. Despite these challenges, some firms are adopting innovative risk practices that align more closely with long-term strategic goals. The study offers critical insights into how risk integration is evolving in sub-Saharan Africa and provides practical recommendations for advancing from compliance to strategy in risk governance and decision-making.
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