African companies are facing a shift in the relationship between sustainability, leadership and the workplace as younger employees place greater emphasis on purpose, wellbeing, inclusion and ethical corporate behaviour alongside pay and career progression. The change is forcing businesses to reconsider ESG not simply as a reporting or compliance requirement, but as a factor shaping how organisations recruit, develop, retain and govern their workforces.
The shift is particularly relevant for Africa, where rapidly growing working-age populations, persistent youth unemployment and widening demand for digital and technical skills are placing greater pressure on employers to build productive and adaptable workforces. For companies operating in markets where talent shortages coexist with large pools of young workers, the ability to connect sustainability commitments with credible employment practices could increasingly influence competitiveness.
According to Deloitte’s 2025 Global Gen Z and Millennial Survey, which covered more than 23,000 respondents across 44 countries, 89% of Gen Z respondents and 92% of millennials said purpose was important to job satisfaction and wellbeing. The survey also found that 44% of Gen Z and 45% of millennials had left a role they considered to lack purpose.
The figures point to a broader change in expectations between employers and employees. While remuneration remains fundamental, particularly in economies facing high living costs, younger workers are increasingly examining how companies behave, what they stand for and whether their workplaces provide opportunities for development and inclusion.
For African businesses, this has implications beyond human resources. Workforce practices are becoming increasingly connected to the social and governance dimensions of ESG, while investors, lenders and other stakeholders are paying greater attention to how companies manage human capital, workplace risks and corporate governance.
The environmental component of ESG is also becoming increasingly relevant to employment. As African economies pursue renewable energy, low-carbon manufacturing, sustainable agriculture and climate-resilient infrastructure, businesses will require workers with new technical and managerial capabilities. The energy transition, for example, is expected to create demand for skills across renewable power, energy efficiency, electric mobility, battery technologies, green hydrogen and climate finance.
This means that workforce planning is becoming part of the wider sustainability transition. Companies that invest in reskilling and continuous learning can potentially reduce the mismatch between emerging economic opportunities and the capabilities available within their organisations. For African economies, where skills shortages remain a constraint on productivity in several high-growth sectors, the issue has implications for both corporate performance and broader economic development.
The social dimension is equally significant. The article argues that employee wellbeing, psychological safety, flexible working arrangements, inclusive decision-making and skills-based career development should increasingly be viewed as governance considerations rather than isolated human resources initiatives.
That distinction matters because workplace conditions affect productivity, employee retention and organisational resilience. The World Health Organization estimates that depression and anxiety contribute to around 12 billion lost working days globally each year, with an estimated economic cost of about $1 trillion in lost productivity.
In Africa, the challenge is complicated by the economic realities facing workers. The pursuit of purpose cannot substitute for adequate wages, job security or decent working conditions. As the Business Daily analysis notes, an employee struggling with housing, food and transportation costs cannot rely on corporate purpose statements alone. Sustainable employment therefore requires a combination of fair remuneration, wellbeing, skills development and meaningful opportunities for progression.
Several African companies are already incorporating elements of this approach into their workforce strategies. Kenya’s Safaricom, for example, has linked its people strategy to its broader purpose of transforming lives, with its sustainability reporting covering skills development, adaptable working structures, employee wellbeing, inclusion and AI-related capabilities. Equity Group has similarly placed employee wellness, skills development, diversity and inclusion within its wider talent strategy, while Nigeria’s Seplat Energy has increasingly linked sustainability with organisational decision-making, health, safety and value creation.
Read also: https://businessday.ng/opinion/article/esg-and-the-future-of-work/
These developments illustrate an important change in the way ESG is being applied. Rather than existing primarily as a sustainability report produced at the end of a financial year, ESG considerations are increasingly entering decisions about recruitment, leadership, remuneration, workforce development and organisational culture.
The governance implications could be particularly important. As workforces become more intergenerational, companies are managing employees with different expectations around authority, technology, flexibility, communication and career development. Boards and executives therefore face a more complex leadership environment in which organisational values are increasingly tested through everyday management decisions.
For companies, the challenge is ensuring that sustainability commitments are reflected in internal systems rather than remaining external statements. This includes determining whether employees can raise concerns without retaliation, whether remuneration structures are equitable, whether managers are prepared to lead across generations and whether employees have access to the skills required for changing roles.
The issue is also becoming relevant to investors. Human capital management, employee relations and governance practices can affect operational continuity, reputational risk and long-term business performance. As ESG disclosure frameworks develop, companies may face greater pressure to demonstrate not only what sustainability policies they have adopted, but how those policies influence measurable outcomes.
For African economies, this creates a wider opportunity to connect ESG with the continent’s employment and development priorities. The Sustainable Development Goal on decent work and economic growth calls for productive employment and decent working conditions, but achieving that ambition requires more than job creation. It requires businesses capable of developing skills, improving productivity and creating workplaces that can adapt to technological and economic change.
Artificial intelligence is likely to sharpen this challenge. As businesses introduce automation and AI-enabled systems, some roles will change while new capabilities become more valuable. African companies that approach the transition primarily as a technology investment may overlook the workforce adjustments required to make those investments productive. Training, leadership development and employee participation will therefore become important components of technology adoption.
The future of work in Africa is consequently becoming inseparable from the future of ESG. Environmental transition will reshape industries and skills requirements; social expectations will influence how companies attract and retain workers; and governance will determine whether sustainability commitments are embedded in corporate decision-making.
The central issue for African businesses is no longer simply whether they have an ESG strategy. It is whether that strategy changes how the organisation operates and how it treats the people responsible for delivering its commercial objectives. In economies where human capital is central to growth, the credibility of ESG will increasingly be measured inside the workplace as much as in corporate reports.
