Strengthening ESG Capacity

Integrating ESG indicators and metrics into the investment analyses and decision-making of financial institutions will ensure projects align with global sustainability and social governance frameworks. According to the UNEP report, this will also increase investor-confidence in projects, helping de-risk mining exploration and production. For example, multilateral financial institution the Africa Finance Corporation (AFC) has embedded ESG into its investment strategy. This has enabled the company to deploy over $700 million towards the mining sector. According to Molebogeng Mazibuko, Associate Vice President of Investment at the AFC, “ESG drives our decisions in our investment strategy.”

Linking Financing to Nature-Positive Requirements

With many global financial institutions aligning their strategies with the Paris Climate Agreement, the UNEP report highlights the value of linking investment plans to climate and nature-positive outcomes. This could increase access to financing, thereby supporting project development. This has proven effective for companies. In October 2025, the International Finance Corporation committed to providing energy firm Voltalia with funding to accelerate renewable energy deployment for mining operations across Africa. The funding aims to reduce dependence on diesel generators for mining projects in Ghana, Guinea, Zambia and Madagascar. Similarly, in March 2025, South Africa’s Industrial Development Corporation raised R2 billion through its maiden sustainable bond, backed by strong support from the AFC, demonstrating the appetite for environmentally focused financial instruments.

Leveraging Policies to Support Investment in Responsible Mining

As the continent moves to advance sustainable mining development, the impact of policies becomes increasingly apparent. UNEP’s report calls on governments to improve fiscal, financial and monetary policies – including tax incentives and sustainability-linked loans - to attract investments in responsible mining practices. For example, Zambia is offering tax credits to mining firms that invest in renewable energy generation, helping reduce emissions, expand energy access and enhance mineral productivity. South Africa has also created an environment to ensure miners adopt cleaner technologies through the enactment of the Carbon Tax Act of 2019 which places a price on carbon emissions. These policies not only incentivize investment but support the rollout of sustainable practices.