Business leadership in a fractured world

The United Nations Global Compact hosted a Forum in Cape Town, South Africa, bringing together over 20,000 corporate organizations from 160 countries. The backdrop of heightened geopolitical fragmentation, particularly due to stringent protectionist policies from the US, has added uncertainty to the multilateral order. Sanda Ojiambo, CEO of The Global Africa Business Initiative and Assistant Secretary General of the United Nations Global Compact, shed light on the challenges and opportunities facing businesses in the current environment. Businesses worldwide are facing a delicate balance between sustainability and profitability amidst the ongoing uncertainty. While some companies have scaled back on sustainability targets, there is a growing consensus among business leaders on the importance of maintaining a focus on long-term sustainability. Issues like diversity, equity, and inclusion (DEI), climate action, and inclusive business practices remain crucial even during these challenging times. The interconnected nature of politics and business is evident as geopolitical tensions impact the multilateral system. International cooperation is essential for businesses to thrive across borders, making a stable multilateral environment a necessity. The fragmentation in the political landscape poses risks to markets, trade, investments, and overall business operations. Therefore, businesses are closely watching the developments in the political sphere. As businesses navigate the uncertainties arising from tariffs and protectionist measures, there is a call for a renewed focus on regional and continental trade. The Africa Continental Free Trade Agreement presents an opportunity for African nations to strengthen intra-regional trade and reduce dependence on markets facing tariffs. This shift towards regional trade alliances could mitigate the adverse effects of higher tariffs imposed by certain countries. Sanda Ojiambo emphasized the pivotal role of businesses in safeguarding global cooperation and multilateralism. Despite the challenges posed by political frictions, businesses have the opportunity to explore new markets and partnerships. South-South trade and collaboration present promising avenues for growth and sustainability, offering businesses alternative avenues amid the changing global landscape. The upcoming G20 Summit hosted by South Africa provides a platform for the continent to shape global priorities. Themes of equality, solidarity, and sustainability are at the forefront, aligning with the Sustainable Development Goals (SDGs) and Africa's development aspirations. This historic opportunity allows Africa to address critical issues such as infrastructure, energy transition, and digital transformation on a global stage. President Ramaphosa's recent conversation with US President Trump signals a potential thaw in relations, which could facilitate constructive dialogue on key economic and trade issues. The prospect of enhanced cooperation between the US and African nations at the G20 Heads of State Summit raises optimism for addressing trade tariffs and global governance challenges. In conclusion, as businesses navigate the complex interplay of geopolitics and economics, the need for a cohesive approach towards sustainability and long-term growth becomes ever more crucial. The UNGC Forum serves as a platform for dialogue, collaboration, and innovation, fostering resilience and adaptability in a fractured world.