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Beyond doing good: Why ESG makes great business sense for African fintechs
By Funmi Dele-Giwa, General Counsel & Head, GRC at MFS Africa
If you’re reading this, there’s a very good chance you’re already familiar with the acronym ESG. Standing for “environmental”, “social”, and “governance”, it’s a constantly evolving standard that emphasises the importance of doing business in a way that positively impacts the environment, society and stakeholders.
Funmi Dele-Giwa
In essence, it’s the idea that companies can grow and profit while doing good and it encourages businesses to be more transparent about how they add to or create value for their society, community and/or stakeholders.
While ESG has its critics (on both sides of the aisle), its philosophy has gained near-universal acceptance in investor circles. In fact, a 2022 study by asset management firm Capital Group found that 89% of investors consider ESG issues in their investment approaches. Additionally, there are around US$2.5 trillion in ESG assets under fund management. And with rising interest rates putting a dampener on investment (including in Africa), scoring well on those metrics may become more important than ever.
But for African fintechs the case for ESG goes beyond becoming investable. Implemented properly, the principles behind ESG make a great deal of business sense. As an illustration of how much of a boost it can be to a business, a study by accounting firm Moore Global found that companies with strong ESG principles saw their profits grow 9.1% in the three years between 2019 and 2022. In other words, the fintechs that get ESG right won’t just have an easier time attracting investment, they’ll also be better poised for growth, sustainability and profitability.
Why ESG works
Before looking into how African fintechs can put together the kind of ESG frameworks that encourage growth and investment, it’s worth taking a deeper look at why it makes good business sense (outside of the already strong investment case) to invest in ESG.
One of the most powerful is the African environmental context. According to the Africa Development Bank, for example, Africa is the continent most vulnerable to climate change. Any fintech that understands this and works to ensure that its operations are sustainable isn’t just helping mitigate the effects of climate change on the planet, it’s also helping ensure a future environment in which it’s more likely to survive and thrive.
Of course, ESG isn’t just about the environment. Its second social pillar has an equally important role to play. For fintechs this can look like ensuring that they hire diversely, support MSMEs, and contribute positively to employment in areas where it’s needed most. But perhaps even more importantly, it also includes financial inclusion.
Choosing to hire diversely has obvious societal benefits: for example it means that previously marginalised groups are able to participate in the economy at much higher levels. But it also comes with significant business benefits. And the higher up the organisation those hires climb, the greater the accrued benefits are. According to the Boston Consulting Group, companies with above average diversity in their management team report 19% higher innovation revenues than those with lower diversity.
Supporting micro, small, and medium-sized businesses also benefits fintechs. For starters, they make up a large customer base (particularly for B2B-focused fintechs) on the continent. In sub-Saharan Africa, there are approximately 44 million SMEs. These enterprises not only serve as the engine of many economies across the African continent, but they also represent a segment historically ignored and under-served by the more traditional financial services players. By providing products and services which speak directly to the pain points of micro and small enterprises, fintechs can not only tap into a fast growing and profitable segment, but can have a positive impact on the overall economic development and prosperity in the country in which they operate.
Growing financial inclusion in the region, meanwhile, is absolutely critical. At present, just 43% of people in sub-Saharan Africa have a formal bank account. That makes it difficult to access things like vehicle, home, and business loans that can be used to grow income. It also means that any savings the unbanked have can’t be used for wealth generating investments. Across the region, fintechs are helping people overcome those barriers by expanding financial services such as digital banking, microfinancing, and digital payments to people who wouldn’t previously have access to them.
The final pillar within the ESG framework, focuses on governance and this is often an overlooked and misunderstood pillar. I am an avid advocate and loud champion of strong corporate governance workings, but I am often asked how strong governance arrangements actually help an organisation thrive and grow.
Many people equate good governance with rigid structures and bureaucratic processes, but I respectfully disagree with these assertions. The truth is that a solid corporate governance foundation, coupled with the right corporate culture, has exactly the opposite effect. It frees an organisation from confusion and unnecessary work. It allows for decisions to be made more freely by people who have been empowered to take decisions. It ensures that key decisions are placed with and taken by the most appropriate individuals within an organisation. And it allows for a dynamic, organised, and agile organisation.
Examples of good governance practices every fintech should have in place include transparent decision-making processes, ethical behaviour, and accountability to stakeholders. This, in turn, helps build trust with customers, investors, and (increasingly stringent) regulators; fostering long-term sustainability and growth.
Building the right frameworks
Of course, claiming to be ESG compliant and having an effective ESG framework are two different things. While there are a variety of approaches that can be taken in doing so, at MFS Africa we take a three-pillared approach that focuses on “setting”, “measuring”, and “reporting” the impact we have in local communities and across the Africa continent.
During the “setting” phase, we outline the parameters which will guide the organisation in its ambition to build a strong impact-driven organisation with a clear ESG approach. Having done that, we measure against those parameters and then report transparently on those measurements.
While each organisation should tailor its ESG framework according to its individual needs and context, we’ve found this model to be the one best suited to us. It’s helped us grow to be the kind of organisation that can connect more than 500 million mobile money wallets across 40 African countries, supporting over 300,000 agents and providing access to financial services for millions of Africans.
A policy worth getting right
Ultimately, despite dire predictions from the extremes of the political landscape, it’s unlikely that ESG will go away soon. Even if the label disappears, it’s now so entrenched in the way that investors do business, that it’ll remain an important consideration. And that’s because the companies that do ESG well share many of the hallmarks of good, investable companies. As the African fintech sector continues to grow, its participants should ensure they’re taking a proactive and positive approach to ESG. This will transform the sector beyond “doing” good to “being” good – good for the economy, good for society and good for stakeholders.
Nigerian Copyright Commission (NCC) has called for urgent adoption of advanced digital protections after blocking seven piracy sites amid escalating online threats to Nollywood content.
The call was made during a webinar hosted by Greychapel Legal titled “Clicks, Streams, and Copyright: Who Owns Nollywood’s Digital Future?”, which brought together filmmakers, regulators, entertainment lawyers and media strategists to examine how content ownership and copyright enforcement are being reshaped by the digital age.
Lynda Alphaeus, director and head of the NCC Lagos Office, said the Commission has intensified its efforts to combat piracy across digital channels and is upgrading its operations to meet emerging threats.
According to her, Nigeria’s new Copyright Act was deliberately updated to strengthen creators’ rights amid the explosion of online distribution.
“NCC has worked, and is still working tirelessly to adapt Nigeria’s legal framework to cope with digital distribution challenges. We now have the power to block networks publishing illegal content, and we have already blocked seven websites distributing pirated Nigerian works,” Alphaeus said.
She revealed that the Commission has established a special taskforce known as the STOP Unit to coordinate anti-piracy operations online, alongside new awareness campaigns targeting local markets and schools to educate content creators and the public on copyright obligations.
Alphaeus urged filmmakers and producers to take ownership of their digital safety by deploying available technological protections to safeguard their intellectual property.
She explained that tools such as encryption help prevent unauthorised copying, blockchain technology offers immutable proof of ownership, digital watermarking allows creators to trace illegal uploads, while cloud security and regular offline backups protect creative files before they reach the market.
While noting that copyright in Nigeria does not legally require registration, she stressed that registering one’s work strengthens protection and provides legal presumptions that can be vital in enforcement.
“Whatever you register is presumed to be yours until proven otherwise,” she said, urging creators to invest in copyright knowledge as part of their business strategy.
Other speakers at the webinar reinforced the urgency of protecting Nollywood’s digital assets.
James Omokwe, film director, noted that while streaming platforms have created unprecedented opportunities for visibility and monetisation, they have also opened new vectors for intellectual property theft and unauthorised redistribution.
Solafunmi Laelle, media strategist, added that audience data, which streaming platforms rely heavily on, will increasingly determine leverage and value in film licensing negotiations.
According to her, creators who lose control of their intellectual property, whether through piracy or unfavourable contracts, also lose access to valuable data that could shape their long-term earnings.
Nky Ofeimun, entertainment lawyer, emphasised the need for creators to understand the contractual implications of ownership, platform exclusivity, and reversion rights.
She noted that many filmmakers still underestimate how quickly digital copies can be illegally duplicated or uploaded once control is lost.
The panelists agreed that as Nollywood deepens its digital footprint, piracy will continue to evolve and become more sophisticated.
They stressed that the industry must respond with equally sophisticated tools, stronger contract negotiation, and improved education around copyright.
Globacom, just introduced four brand new movies on its premium entertainment platform, Glo TV, and they are completely free for all subscribers. The company says the release marks another major step in its mission to enrich digital entertainment for millions of viewers across the country.
In a statement from Lagos on Wednesday, Globacom explained that the new titles feature some of Africa’s most celebrated actors and filmmakers, offering a colorful mix of romance, comedy, drama, culture, and emotional storytelling. The lineup includes Johnny Just Come (JJC), Eko Vibes, Bound, and Shifting Desire.
“Each of these movies was chosen to spotlight diverse African stories while delivering world class entertainment unavailable in cinemas, on YouTube, or on any other streaming service. Viewers do not need any subscription or extra payment. Access is completely free,” the company said.
Leading the pack is Shifting Desire, featuring Lilian Afegbai and veteran actor Majid Michel. The film is a gripping romantic drama that dives into marriage, intimacy, betrayal, healing, and the emotional journey of a couple using therapy to rebuild trust. Shifting Desire premiered on Glo TV on December 2 and is already streaming for free.
Johnny Just Come (JJC), starring Patience Ozokwor and Nancy Isime, delivers a hilarious cultural crossover story about an American man trying to navigate love and marriage in an African household. The movie explores themes of identity, family, culture, and coexistence in a warm and relatable way.
The third title, Bound, starring Rita Dominic and Eyinna Nwigwe, is a thought-provoking family drama that follows a successful career woman confronting long hidden personal struggles and the impact on her relationship. The film showcases powerful performances from some of Nollywood’s finest.
Rounding out the collection is Eko Vibes, featuring Broda Shaggi, Josh2Funny, and Nkechi Blessing. The movie captures the energy and hustle of Lagos youth culture, spotlighting ambition, humor, and the vibrant spirit of young people chasing success in the city.
Globacom noted that the new releases reinforce its commitment to delivering original African content at the highest quality. “With these exclusive titles, Glo TV is redefining digital entertainment in Nigeria by offering fresh, premium movies not available anywhere else. We remain committed to growing our catalog with rich African stories that celebrate creativity at its best,” the company added.
A new study, conducted by pan-African organisation, Paradigm Initiative (PIN), warns of an alarming surge in the prevalence of Technology-Facilitated Gender-Based violence, with 67 percent of respondents being victims of at least one or multiple forms of digital violence.
Online
Released on International Human Rights Day, the research exposes deep systemic failures, weak accountability, and unsafe online spaces driving a rapidly escalating epidemic across Cameroon, Kenya, Nigeria, Senegal, Zambia, and Zimbabwe.
PIN recognises that this gap limits both the understanding of TFGBV and the development of effective solutions. In response, this study adopts a survivor-centred approach that reframes how TFGBV is researched, discussed, and addressed. By prioritising survivors’ perspectives, the research uncovers the emotional, social, and systemic dimensions of digital violence that formal reports and statistics often obscure. It also interrogates how survivors navigate reporting systems, access justice, and play an informed role in digital spaces that are frequently hostile or unsafe.
A key finding of the study is that young people are disproportionately affected, with those aged 18–34 constituting the vast majority of survivors. Most incidents of TFGBV occurred on Facebook, WhatsApp, and X (formerly Twitter), underscoring how mainstream social media platforms continue to function as structurally unsafe spaces for many users—particularly women, activists, and advocates.
“Victims’ experiences range from sexual harassment, threats, and misogynistic attacks to severe violations such as stalking, non-consensual image sharing, hacking, sextortion, and identity-based harassment,” the report notes. “Personal testimonies reveal profound emotional, psychological, and reputational harm.”
The study also highlights that formal systems such as the police, employers, and public institutions, remain underutilised, largely due to fear, mistrust, or an expectation of inaction. While the findings expose wide-ranging gaps across platforms, institutions, and legal frameworks, they also highlight survivors’ resilience and their continued efforts to seek safer digital environments.
In light of these findings, PIN calls for urgent action to make online spaces safer for everyone, in line with this year’s Human Rights Day theme, “Human Rights, our everyday essentials.” Addressing these systemic gaps is critical to advancing democratic engagement, promoting media pluralism, fostering digital inclusion, and achieving gender equality across Africa.
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