In a context where economic relations between Africa and Europe are scrutinized in terms of demand, sustainability, and transparency, Note 35 of SYSCOHADA could well constitute a silent revolution. Still largely unknown, not public and not published, this too discreet specific and unique provision paves the way for a real African extra-financial reporting, focused on environmental, social, and governance (ESG) issues.
However, in a world where investors, regulators, and economic partners demand more transparency, Africa has here a leading normative weapon that the African Union should even seize by generalizing it!!!
A unique African proprietary tool to reduce information asymmetry
The lack of reliable data, especially on the impacts of economic activities, in light of emerging taxonomies such as in South Africa, Kenya, and recently in Togo, is one of the major obstacles to investment on the continent. International funders speak of “Africa risk,” not so much due to an objective reality as to a persistent information asymmetry.
By making this genuine ESG reporting mandatory and public via Note 35, African companies would greatly reduce this trust gap. They would show, with figures and indicators, their contributions to local employment, protection of natural resources, as well as efforts in combating climate change and corruption. It would allow emerging African extra-financial rating agencies, in full maturation, to have homogeneous and comparable data that Artificial Intelligence could analyze massively to foster trust in business relationships. It would thus stimulate responsible economic actors, those concerned with reputation as well as impact, establish a factual distinction between those who “announce” and those who actually do… It would objectify public and private purchasing towards sustainability, between the best bidder and the least bidder…
Convergence with Europe: a strategic lever
At the same time, the European Union is implementing the CSRD and CS3D, which require large European companies to provide rigorous reporting on their social and environmental impacts, even in their subsidiaries and supply chains. There is no obligation for Africa to focus on the European market; the continent’s internal potential is much greater and represents a major and essential opportunity for economic and social development to be prioritized.
That being said, if African companies and value chains align, with the support of Europe, at least on these standards notably through SYSCOHADA, they become increasingly credible and indispensable partners for European actors, who need local ESG data to comply with their regulatory obligations and manage their legal and reputational risks. It is also a unique opportunity to reposition Africa as a normative actor, a partner, and not just a recipient of standards from elsewhere. And even an opportunity to accelerate the emerging trend of relocating activities from Asia to Africa.
Enriching trust, building lasting relationships
Transparency is not just a matter of compliance. It is the foundation of trust between economic actors, both public and private, investors and operators. Without trust, there is no sustainable investment, no win-win partnership.
By fully adopting Note 35 and publishing it voluntarily, African companies covered by OHADA as well as others, including European subsidiaries, would demonstrate their ability to integrate international best practices while asserting a regional specificity. Far from being a constraint, this requirement would become a competitive advantage in accessing international financing aligned with the World Bank or the PRI (Principles for Responsible Investment), European markets, and strategic partnerships.
The moment of truth
Africa has often been perceived as lagging behind in financial standards or extra-financial reporting. Note 35 changes the game. It can make OHADA a laboratory for ESG integration, and Africa a pioneer in the articulation between economic growth, social justice, and environmental sustainability.
However, companies and states must play the game of publication and transparency. Because a standard that remains a dead letter, in a drawer stapled to a tax return as is currently the case, is worthless.
The time has come to turn this potential into political and economic action. Africa has a tool. It must now make it a strong signal: that of a continent that does not wait for others to write its rules, but fully assumes building its own grammar of sustainability and trust.
