SADC, UNDP and EU Advance Sustainable Finance Taxonomy Framework for Southern Africa

The Southern African Development Community (SADC), United Nations Development Programme (UNDP) and European Union are collaborating to develop a common sustainable finance taxonomy framework for Southern Africa. The initiative was advanced during a regional workshop held on 9 October 2026 in Gaborone, Botswana, with financial support from the EU through its Sustainable Finance Advisory Hub. The proposed framework aims to help governments, banks and investors identify economic activities and projects that meet sustainability criteria, improving consistency and transparency across SADC Member States.

The SADC Common Framework for Sustainable Finance Taxonomies will provide voluntary guidance rather than impose uniform requirements across the region. Member States will retain flexibility to reflect national economic conditions and development priorities while working towards greater comparability between sustainable investment classifications. The approach is intended to support cross-border investment and help mobilise capital for climate action and sustainable development projects.

 

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The framework will initially focus on climate change mitigation and adaptation, covering potential activities in renewable energy, industry and extractives, agriculture and forestry, transportation, buildings and construction, and water and waste management. It will also consider criteria for assessing environmental benefits, avoiding significant harm to other environmental objectives, maintaining minimum social safeguards and recognising activities supporting the transition towards more sustainable economic practices.

Dr Yolanda Sabino, Director of Finance, Investment and Customs at the SADC Secretariat, emphasised the importance of regional cooperation and consistency between national sustainable finance approaches. Maxwell Gomera, UNDP Resident Representative in South Africa and Director of the UNDP Africa Sustainable Finance Hub, highlighted the need to translate sustainable finance policies into investment opportunities, including improving access to financing for small and medium-sized enterprises.

 

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Following consultations on the Inception Report, the initiative will proceed towards developing a draft regional taxonomy framework, followed by further technical consultations and validation with Member States. The collaboration aims to establish a common reference for sustainable investment across Southern Africa while supporting national priorities and the region's broader climate and development objectives.