As global expectations for corporate sustainability disclosure tighten, Africa stands at a pivotal crossroads. The release of the International Sustainability Standards Board (ISSB)’s IFRS S1 and S2 standards—effective from January 2024—marks a new era for corporate transparency and climate accountability. But the question remains: Is Africa ready?
As sustainability reporting becomes a global imperative, the introduction of the International Financial Reporting Standards (IFRS) S1 and S2 marks a significant step toward standardised, transparent, and investor-relevant disclosures. IFRS S1 and S2 are built on frameworks such as Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB), aiming to provide a universal baseline for sustainability reporting.
These standards aim to create a global baseline for sustainability reporting, enabling consistent, comparable, and decision-useful disclosures for investors.
The IFRS foundation has confirmed that several African countries — including Ghana, Kenya, Nigeria, Tanzania, and Zambia — are actively aligning with or adopting the ISSB Standards as part of a growing global movement to standardise sustainability-related financial disclosures. This momentum reflects Africa’s recognition of the importance of sustainable finance for accessing international capital and trade.
Some of the concrete steps being taken by leading African economies are as follows:
However, adoption is uneven. Many markets remain in early awareness stages, and national regulatory guidance varies significantly.
The adoption of IFRS S1 and S2 presents a wide range of opportunities for Africa as it seeks to position itself within the global sustainability landscape. The table below outlines key advantages of early adoption, from improving risk resilience and regulatory preparedness to building a strong sustainability brand that appeals to global stakeholders.
Despite growing momentum toward the adoption of IFRS S1 and S2 in Africa, significant readiness gaps persist across many jurisdictions. Key challenges include limited technical capacity within regulators and reporting entities, insufficient awareness and understanding of the standards, and a lack of reliable sustainability-related data and reporting systems. Many organizations are still in the early stages of integrating ESG considerations into governance, strategy, and risk management processes—core pillars of IFRS S1.
In addition, the detailed requirements of IFRS S2, such as greenhouse gas emissions reporting and climate scenario analysis, pose technical and resource-intensive demands that most companies are not yet equipped to meet. Without targeted capacity-building, phased implementation plans, and tailored local guidance, these gaps risk undermining the consistency and comparability that the standards aim to achieve.
As African businesses prepare for the global shift towards mandatory sustainability disclosures, staying ahead of IFRS S1 and S2 implementation is no longer optional—it is a strategic imperative. These standards demand more than compliance; they require organisations to integrate sustainability into the heart of their governance, risk, and financial systems. To lead rather than lag, companies must adopt a forward-looking approach that combines capacity building, systems development, stakeholder engagement, and strategic alignment.
Grant Thornton has put together a roadmap that provides a structured pathway to guide businesses through readiness, implementation, and leadership in IFRS-aligned sustainability reporting.
IFRS S1 and S2 are no longer optional—they are fast becoming the new norm. For Africa, the journey to readiness will require coordination, innovation, and investment. But with the right partnerships and preparation, African businesses can not only comply—they can lead.The question is no longer "if"—but "how fast" Africa can move.
We are proud to introduce our African Sustainability Desk — a dedicated hub of ESG expertise designed to support clients across the continent in navigating the evolving sustainability landscape. Staffed by a network of seasoned ESG professionals from diverse African markets, the desk offers localized insights, regional best practices, and tailored advisory services that reflect the unique challenges and opportunities facing businesses in Africa. Whether clients are preparing for IFRS S1 and S2 compliance, developing ESG strategies, or exploring sustainable investment opportunities, our team is equipped to provide practical, high-impact solutions grounded in deep regional knowledge and global standards.
