Staff Writer
GABORONE, Botswana — The Southern African Development Community (SADC), in partnership with the United Nations Development Programme (UNDP) and with financial support from the European Union (EU), is working to establish a common framework to promote sustainable investment across Southern Africa.
The initiative seeks to develop the SADC Common Framework for Sustainable Finance Taxonomies, which will help governments, financial institutions and investors identify economic activities and projects that meet agreed environmental and sustainable development criteria.
In a statement, SADC said the initiative was aimed at strengthening regional cooperation on sustainable finance and improving transparency and consistency in investment decisions across Member States.
“The initiative aims to advance the development of a common approach for identifying investments that support environmental sustainability and sustainable development across the region,” SADC said.
The regional body said the framework would help guide investment towards sectors that promote environmental protection, climate action and sustainable economic growth.
“The Framework will help governments, banks and investors assess whether economic activities and projects meet agreed sustainability criteria,” SADC said.
The framework could help direct financing towards renewable energy, sustainable agriculture and other economic activities that contribute to regional development while addressing environmental challenges.
SADC said the proposed framework would also make it easier for investors to assess and compare sustainable investment opportunities across different countries.
“By making it easier to assess and compare investments across countries, the Framework also aims to encourage cross-border investment and mobilise funding for projects that address climate change and support sustainable development,” the regional body said.
The initiative was discussed at a regional workshop convened in Gaborone on October 9, 2026, with financial support from the EU through its Sustainable Finance Advisory Hub.
SADC emphasised that the framework would provide voluntary guidance rather than impose a uniform set of regulations on all Member States.
“The Framework will offer voluntary guidance rather than impose a single set of rules on all Member States,” SADC said.
The regional organisation said this approach would allow individual countries to take their national circumstances and development priorities into account while working towards a common understanding of sustainable finance.
“This means that countries will be able to take their national circumstances and development priorities into account while working towards a common understanding of sustainable finance,” SADC said.
The framework is expected to strengthen confidence in sustainable investments by providing a more consistent basis for determining which projects meet agreed sustainability standards.
The partnership between SADC, UNDP and the EU reflects efforts to strengthen regional cooperation in mobilising finance for projects that support environmental sustainability and long-term development.
Through the proposed framework, SADC aims to encourage investment that balances economic growth with environmental protection while supporting the region’s broader sustainable development objectives.