Partner at SNG Grant Thornton Vusi Nkabindze says companies, investors, asset and investment managers, pension funds, and various institutions have to rethink how they invest going forward.
Nkabindze notes that companies have been looking at only profits, but the trend is now shifting towards sustainable profits.
He said the conversation globally is now long-term profits, long-term remuneration as well as investing in companies and projects that are energy compliant or those that take into account the Environmental, Social, and Governance issues (ESG).
Nkabindze mentioned this during the inaugural Eswatini Institutional Investors Forum 2023 held at the Hilton Garden Inn, Mbabane.
He presented on ‘Key Sustainability Trends Driving Decision Making and Their Impact on the Economy in Emerging Markets’.
The Forum was organized by the MNCapital Group Events – an investment communications firm based in Johannesburg, South Africa.
The event was attended by Pension Funds, Capital Markets Institutions, Asset Managers, Auditing Companies, and Financial Services firms, amongst others. The Forum was themed ‘Harnessing Alternative Investment to Drive Economic Recovery.’
Nkabindze advised local companies to take the sustainability conversation seriously and develop ESG documents.
“What we are observing is that most investors or high net worth individuals globally are now asking companies for ESG reports or documents before they can invest in a particular project.”
He also advised project owners to move towards developing projects that amalgamate ESG, socially responsible investing, impact investing, and social capitalism.
The Partner gave an example of what project owners should be looking at developing going forward.
“Current projects that companies and investors should be looking at include, sustainable agriculture, smart cities, affordable housing, waste management, healthcare and education, among others”.
He acknowledged that there is still a long way to go as most investors aren’t keen on investing in companies that are at the concept phase of a particular product or are at an early stage. Nkabindze said in most cases investors will stick to the same investments that provide them with short-term profit.
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