The importance of sustainable business practices has never been more evident than it is today. It is now a vital strategy for future-proofing businesses and economies. The growing global emphasis on sustainability has increased the expectations of stakeholders such as customers, investors, governments, and civil society organizations. For this, governments and businesses alike are pursuing sustainable practices to enjoy the benefits it brings including operational efficiency and enhanced reputation. 

Some businesses have started rolling out strategic and systematic processes aimed at achieving their sustainability goals and driving more value. As Africa continues to navigate the hurdles of resource depletion, climate change, and socio-economic development, the role of procurement has become more pronounced. Procurement, a business function that has traditionally been seen as a cost-cutting center has emerged as a strategic tool for advancing sustainability goals due to its influence over sourcing decisions and supplier relationships. The Chartered Institute of Procurement and Supply (CIPS) defines sustainable procurement as the process of meeting the demands of today without compromising the ability of future generations to do the same. The African Development Bank (AfDB) also defined sustainable procurement as the process whereby organizations meet their needs for goods, services, works, and utilities in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to the organization but also to the society and the economy whiles minimizing the environmental impact.  

The benefits of sustainable procurement go beyond cost efficiency and improved supply assurance but include a reduction in environmental impact, a contribution to society, and fostering economic growth. Strategically aligning procurement with sustainable goals is a recipe for long-term success. 

The Strategic Role of Sustainable Procurement

In Africa, where multiple countries are accelerating economic growth and industrialization, procurement can play a vital role in meeting sustainability targets while achieving financial success. At the basic level, procurement is about sourcing and acquiring goods and services that meet business needs, but sustainable procurement goes beyond that. It includes taking into consideration environmental, social and economic impacts at every step of the procurement process. This approach provides a systematic process for addressing the environmental, social, and economic challenges in Africa.    

The Influencing Power of Sustainable Procurement

1. Supporting Local and Sustainable Suppliers:  One of the most impactful ways to advance sustainability goals is to deal with local suppliers and select those who comply with ethical and environmental standards. Local sourcing empowers local communities by stimulating their economies through job creation. It also improves supply chain visibility for building resilience and reduces carbon emissions from long-distance transport.   

Case Study

The Kenyan telecommunications giant, Safaricom, creates sustainable and inclusive growth through its procurement strategy. The company focuses on empowering local suppliers and supporting women-owned businesses in their supply chain. Through this, they contribute to the development of a regional economy while reducing their carbon footprint from long-distance transportation. This approach aligns with the company’s broader sustainability strategy which aims to support the UN sustainable development goals particularly goal 12 (Responsible production and consumption). 

Source: (Safaricom, n.d.)

2. Implementing Circular Economy Principles: The economies of most African countries are dependent on the extraction of finite natural resources. These resources need to be carefully managed to ensure maximum value is derived from them before disposal. The principles of circular economy focus on waste reduction through recycling, reuse, or finding alternative purposes for materials rather than immediate disposal. Through this, materials are kept away from landfill sites for longer and new resource extraction for production is limited. Procurement can drive the adoption of circular economy principles by sourcing recyclable and reusable materials and by encouraging suppliers to do the same through their relationships.    

Case Study

As part of MTN Group’s broader sustainability strategy, the company through its Project Infinity in Guinea uses refurbished network infrastructure equipment that would have otherwise been idle, obsolete or disposed of. This circular economy program relies on a digital solutions platform enabling supply and demand matching. The program has allowed the company to execute projects at a fraction of the cost of new equipment and maximize its limited resources while minimizing its environmental impact by avoiding emissions that would have been emitted during the mining of resources, manufacturing, and distribution of new equipment. 

Source: (MTN Group, 2024)

3. Encouraging Supplier Diversity and Inclusion:  Inequality in the distribution of economic opportunities remains a major concern in many African societies where many marginalized groups do not benefit from social and economic programs. Sustainable procurement provides an opportunity beyond environmental stewardship to include social impact. Sourcing strategies can be developed around supporting marginalized groups and creating an opportunity for economic participation.  

Case Study

In Uganda, public procurement is big business as it accounts for 60% of the government’s total expenditure. Despite women-owned and women-led companies making up 40% of registered companies in the country, they receive only 1% of public contracts. To tackle this gender inclusion challenge and increase participation, the Public Procurement and Disposal of Public Assets Authority rolled out a series of regulatory reforms and training programs aimed at increasing the participation of women-led businesses in government contracts by at least 5%.

Source: (Sklar, 2025)

4. Promoting Transparency and Ethical Standards: Africa is vulnerable to corruption and exploitation, which has impeded its economic development. Ineffective governance creates a fertile ground for corruption and unethical practices, ultimately hindering sustainable economic development. To address this perennial problem, transparent and ethical procurement can be used to build trust and accountability. 

Case Study

Barrick Gold, as part of its broader sustainability strategy, recognizes that operating with honesty, integrity, and transparency is the right thing to do to achieve ultimate sustainability and ensure long-term success. Particularly, countries in the global south are susceptible to the damaging effects of unethical practices due to the demand for natural resources. To address this, the company’s operations across multiple countries are guided by its core values and principles embedded in its anti-bribery, anti-corruption, and anti-fraud policies. They also track a target of 100% compliance with their supplier code of ethics and business conduct each year. This approach not only helps the company mitigate environmental risks but also promotes ethical labor practices ensuring workers are treated fairly and local communities benefit from mining activities.  

Source: (Barrick Gold, n.d.)

5. Capacity Building and Innovation in Procurement:  The full benefits of sustainable procurement can only be achieved through investments in capacity building and upskilling. Procurement professionals and stakeholders need to be trained to understand the complexities of sustainability and the need to integrate ESG criteria into procurement decisions.  

Case Study

The AfDB introduced a sustainable procurement guidance note to assist its staff, borrowers, and grant recipients in adequately integrating sustainability considerations into procurement strategies and proceedings for projects funded in whole or in part by the bank. This guidance note aligns with the bank’s procurement policy to ensure that procurements offer value for money while contributing to the growth of local industries and economies. The guidance note is designed to improve procurement processes in line with best practices and ensure that investments contribute to achieving the Sustainable Development Goals, specifically goal 12.  

Source: (African Development Bank, 2020)

How to leverage Sustainable Procurement

African businesses can integrate sustainable procurement practices into their operations by: 

1. Including clear sustainability criteria in procurement strategies and proceedings. For instance, specify renewable, reusable or recyclable materials and ethical labour practices in your requirements.  
2. Sourcing from local suppliers to promote the development of local economies and reduce the carbon footprint associated with long-distance transportation. 
3. Partnering with NGOs and certification bodies such as Rainforest Alliance to ensure suppliers comply with social and environmental standards. 
4. Establishing guidelines and providing incentives for suppliers to encourage them to adopt circular economy practices such as recycling, reusing and finding alternative uses for products instead of immediate disposal. This can be achieved by establishing guidelines and providing incentives for suppliers.  
5. Educating suppliers on the best sustainability practices and standards to enable them to contribute to sustainability goals.  

Procurement as a Driver for Sustainable Growth

Procurement in Africa is no longer about just cost savings, but the function is strategically and uniquely positioned to contribute to the achievement of sustainability goals. With its influence on supplier relationships and sourcing decisions, it can drive social, economic and environmental changes. Sustainable procurement delivers value for money and impacts various aspects of economic development by focusing on ethical and local sourcing, circular economy principles, capacity building and transparency. Businesses that embrace sustainable procurement are better positioned to meet the demands of an increasingly eco-conscious market, guaranteeing their long-term competitiveness. 

Sustainability is not a destination, but a journey and procurement can lead the way. African businesses must recognize and harness the unique power of sustainable procurement as a driver for sustainable development, paving the way for a greener, more equitable and prosperous future. 

Featured image source: vecteezy.com

REFERENCES

MTN Group. (2024, April 26). Partnerships for the planet: Circular economy MTN Guinea-Republic. Retrieved from MTN: https://www.mtn.com/case-study/partnerships-for-the-planet-circular-economy-mtn-guinea-republic/

Sklar, K. (2025, January 23). Empowering women businesses in Uganda through contracts. Retrieved from Open Contracting Partnership: https://www.open-contracting.org/2025/01/23/empowering-women-businesses-in-uganda-through-contracts/

Barrick Gold. (n.d.). Governance; Global Oversight, Local Delivery. Retrieved from Barrick: https://www.barrick.com/English/sustainability/governance/default.aspx

Safaricom. (n.d.). Creating Sustainable and inclusive growth through the entire value chain. Retrieved from Safaricom: https://www.safaricom.co.ke/about/sustainability/our-purpose/shared-value/creating-sustainable-and-inclusive-growth-through-the-entire-value-chain

African Development Bank. (2020, December 18). Sustainable Public Procurement. Retrieved from African Development Bank: https://www.afdb.org/sites/default/files/2020/12/18/guidance_note_-_sustainable_public_procurement.pdf