By Christopher Burke
Senior Advisor, WMC Africa
The convergence of environmental, social, and governance (ESG) principles with sustainable land governance frameworks such as the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries, and Forests (VGGTs) is redefining the role of micro, small, and medium-sized enterprises (MSMEs) in the agricultural sector across Africa. This integration offers commercial opportunities for business while addressing challenges related to food security, climate resilience and equitable development. ESG principles, traditionally associated with corporate governance, are increasingly relevant for MSMEs in agriculture. The adoption of ESG-aligned practices is not just about compliance, but unlocking new markets, improving productivity and fostering long-term profitability.
Sustainable Practices for Climate Resilience
Sustainable practices such as regenerative agriculture, organic farming and water-saving irrigation techniques reduce input costs and increase resilience to climate change. Frameworks such as the Climate-Smart Agriculture (CSA) approach and regenerative agriculture principles provide practical tools to guide these efforts. Investing in local communities through support to smallholder farmers, promoting gender equality and ensuring fair labor practices builds trust and fosters community-driven growth. ESG frameworks such as the Fair Trade Certification System and SA8000 Social Accountability Standards provide clear benchmarks for MSMEs to enhance social impact submits Somto Nwachukwu, safety and sustainability coordinator at Geoplex Drillteq in Nigeria.
Land Governance: A Pillar of ESG in Agriculture
Secure and transparent land governance underpins the successful implementation of ESG in agriculture. Land tenure systems ensure clarity, reduce operational risks and foster growth opportunities for MSMEs. The VGGTs, adopted by the Committee on World Food Security in 2012, provide guidelines that help MSMEs navigate land tenure complexities. Clear land tenure reduces conflicts and legal disputes, offering businesses a stable environment for investment, asserts Carolina Reynoso Pieters at the Cadasta Foundation. Recognizing customary land rights and engaging local communities in decision-making builds goodwill and strengthens local partnerships. Transparent land governance attracts small-scale investors and aligns with international sustainability benchmarks such as the Global Reporting Initiative (GRI).
Creating Inclusive Agricultural Value Chains
MSMEs can work directly with smallholder farmers to create inclusive value chains. Providing access to affordable inputs, training, and market linkages can improve productivity while ensuring a consistent supply of raw materials. Programs that secure land tenure guided by the VGGTs enable smallholders to invest confidently in their land. Through the adoption of climate-smart practices, MSMEs can increase yields and reduce environmental impacts. CSA frameworks promote the use of low-cost irrigation systems, drought-resistant seeds, and renewable energy solutions that offer scalable opportunities for small agribusinesses. Supporting women’s access to land and resources is both a social and economic opportunity. Godfrey Lutwama, Chief Executive Officer at Easebusiness International in Uganda, agrees that Fair Trade Certification combined with gender-responsive land tenure programs helps ensure women’s contributions are recognized and rewarded, leading to improved livelihoods and stronger local markets. The implementation of fair trade practices leads to improved livelihoods and social justice, explains Lutwama. ESG-aligned practices open doors to microfinance, impact investment funds, and sustainability-linked grants. MSMEs demonstrating a commitment to sustainable land use and community engagement are well-positioned to attract resources from green financing mechanisms.
Success Stories in ESG-Driven Agriculture
Mwees Farm Enterprises is focused on vegetable farming in Kenya and empowers women entrepreneurs with the knowledge and tools necessary to utilize ESG sustainability practices in collaboration with Invest in Africa and the World University Service of Canada (WUSC). The AgriCarbon programme in South Africa is focused on regenerative agriculture utilizing a holistic farming approach to improve soil health, enhance biodiversity and promote ecological resilience while also producing food. The programme supports and pays farmers for carbon credits generated from sustainable land management practices. Focused on sustainable land use, such initiatives enhance productivity and resilience.
Women-led led cooperatives trading in shea nuts in Ghana successfully leveraged ESG-aligned practices such as sustainable harvesting and fair trade certification to access international markets confirms Jean-Arnaud Janvier, a French Foreign Trade Advisor with 20 years’ experience working on shea in Ghana.
Rwanda’s systematic land registration has enabled MSMEs in agriculture to formalize operations, secure investments and scale sustainably by reducing tenure disputes according to Jossam Potel, a senior land tenure specialist with Landesa in Kigali. The issuance of certificates that recognize land use rights has improved tenure security and led to increased investments in land improvements and higher agricultural yields.
The EUDR: A Driver of ESG Compliance
The European Union Deforestation Regulation (EUDR) represents another significant driver of ESG compliance for MSMEs in Africa. The EUDR aims to ensure that commodities entering the EU market are not linked to deforestation. This regulation has created challenges and opportunities for African agricultural businesses. Sustainability Lead Bernard Wright at Advance Insight suggests that African MSMEs who adopt sustainable land use practices and are part of a transparent and documented supply chain will have a distinct advantage in European markets.
Stakeholders that do not have the resources to comply may be locked out of preferable and fairer markets warns Nathaniel Williams, Technical Manager at the Agricultural Business Initiative (aBi) in Uganda. The EUDR highlights the growing importance of traceability and ethical sourcing, encouraging MSMEs to leverage tools such as the Accountability Framework Initiative to demonstrate compliance and access lucrative export opportunities.
Overcoming Challenges in ESG Adoption
While the commercial benefits of ESG are clear, MSMEs face specific challenges adopting these principles. The majority of MSMEs lack the financial and technical capacity to implement sustainable practices. Frameworks such as ISO 14001 Environmental Management Systems provide scalable options to integrate environmental stewardship. Unclear or inconsistent policies related to land tenure and environmental standards can hinder business operations. John Jagwe, Country Programs Lead at Alliance for a Green Revolution in Africa (AGRA) in Ghana, reports that many MSMEs in the agricultural sector across Africa lack awareness of the benefits of ESG principles and the tools to integrate them effectively. Strengthening awareness and training on tools such as the Accountability Framework Initiative is necessary to address this gap.
Pathways to Sustainable Agricultural Growth
To thrive in Africa’s evolving agricultural landscape, MSMEs must explore ways to align business goals with ESG principles to strengthen sustainable land use, community partnerships, and transparent governance. Meaningful collaborations involving governments, NGOs and other stakeholders can provide access to resources, training, and support for sustainable practices.
Investments in low-cost digital tools for land mapping, monitoring sustainability metrics and improving supply chain transparency can help MSMEs adopt affordable technologies assures Reynoso Pieters at the Cadasta Foundation. Exploring microfinance institutions, impact investors, and grants focused on ESG-aligned projects can support sustainable growth.
Unlocking the Potential of ESG in African Agriculture
The integration of ESG principles with sustainable land governance frameworks presents a significant commercial opportunity for MSMEs in Africa’s agricultural sector. Adopting these practices and leveraging relevant frameworks such as the VGGTs, CSA and Fair Trade Certification will enable MSMEs to mitigate risks, enhance profitability and drive Africa’s sustainable development. Compliance with international regulations such as the EUDR positions MSMEs as leaders in responsible agriculture providing access to global markets while fostering ethical supply chains and community resilience.
As ESG principles become a core component of agricultural development, their successful implementation depends on strengthening land governance systems that provide tenure security, transparency and inclusivity. Policymakers, investors and agribusiness leaders must work collaboratively to ensure that MSMEs have the financial, technical and institutional support necessary to implement sustainable practices. Africa can create a resilient agricultural sector that balances economic growth with environmental sustainability and social equity through the effective integration of ESG and land governance reform.
Transforming African agriculture through ESG and land governance is not only a pathway to sustainability, but an imperative to secure food systems, enhance rural livelihoods and drive inclusive economic growth. The convergence of ESG and land governance frameworks provides a foundation for Africa’s agribusiness sector to build long-term resilience and position itself competitively in global markets.
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Christopher Burke formerly served as Senior Land Tenure Officer and VGGT Coordinator with United Nations Food and Agriculture Organization (UN FAO). He is currently an advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda. With almost 30 years of experience, Christopher has worked extensively on social, political and economic development issues focused on agriculture, governance, environment, communications and international relations in Asia and Africa.
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