The initiative took a step forward on October 9, 2026, when SADC and UNDP convened a regional workshop in Gaborone, Botswana, to develop a common approach to sustainable finance.

Funded by the EU through its Sustainable Finance Advisory Hub, the initiative aims to establish the SADC Common Framework for Sustainable Finance Taxonomies. The framework will help governments, banks and investors determine whether economic activities and projects meet agreed sustainability criteria.

By improving transparency and consistency in how sustainable investments are classified across SADC Member States, the framework is expected to help channel capital into renewable energy, sustainable agriculture and other activities that support regional development.

The proposed framework will provide voluntary guidance rather than impose uniform rules on all member countries. This will allow governments to account for national circumstances and development priorities while working towards a shared understanding of sustainable finance.

A common approach could also make investments easier to assess and compare across borders, helping attract regional investment and mobilise funding for projects addressing climate change and sustainable development.

Speaking at the workshop, Dr Yolanda Sabino, Director of Finance, Investment and Customs at the SADC Secretariat, highlighted the importance of regional cooperation in developing sustainable finance standards. She stressed that the framework should improve consistency and comparability between national approaches without disregarding the differing circumstances and priorities of member states.

Mr Maxwell Gomera, UNDP Resident Representative in South Africa and Director of the UNDP Africa Sustainable Finance Hub, emphasised the need to turn sustainable finance policies into practical investment opportunities and measurable development benefits. He also underscored the importance of expanding access to sustainable finance for small and medium-sized enterprises (SMEs).

The framework will initially prioritise climate change mitigation and adaptation. A preliminary regional assessment identified energy, industry and extractives, agriculture and forestry, transport, buildings and construction, and water and waste management as sectors for consideration.

It will also address how to evaluate the environmental benefits of projects, ensure activities do not cause significant harm to other environmental objectives, maintain basic social safeguards and recognise activities transitioning towards more sustainable practices.

Following consultations on the Inception Report, work will proceed on a draft SADC Common Framework. The draft will undergo further technical consultations and validation with member states.

Led by the SADC Secretariat, with technical support from UNDP and financial backing from the EU, the initiative seeks to strengthen sustainable finance across Southern Africa by helping governments and investors identify credible opportunities and direct funding towards the region’s climate and development goals.

Source: sadc.int