Why South Africa’s G20-B20 Presidency matters for SME sustainability

The world is at a crossroads: the global economy needs to grow but it is also under pressure to decarbonise. For Africa, the stakes are even higher. Climate shocks, low adaptive capacity to climate change, rising energy costs and fragile supply chains are reshaping markets, while small and medium-sized enterprises (SMEs), which make up 90% of businesses and contribute up to 80% of jobs on the continent, risk being left behind.

As South Africa assumes the G20 presidency and subsequently the presidency of B20 - the official business sector engagement group for the G20 that Standard Bank is a proud lead sponsor of, the country has a unique opportunity to shape the global sustainability agenda through the lens of Africa. The timing could not be more fitting. Standard Bank today (26 August 2025) launched its Sustainability Academy, a programme designed to help SMEs translate global climate goals into practical business action. The launch underscores a crucial point, that sustainability is a tangible reality for entrepreneurs who are trying to build resilient businesses in uncertain times.

SMEs are the lifeblood of African economies, but they are also highly exposed to the disruptions of climate change. The African Development Bank estimates that SMEs already face a USD 330 billion annual financing gap, while many lack access to the capital needed to invest in greener technologies. Without intervention, these businesses risk exclusion from global supply chains that increasingly demand sustainability credentials.

Yet SMEs are also agile. Their ability to adopt innovations quickly makes them central to solutions such as renewable energy, carbon market and climate-smart agriculture. With the right support, they can simultaneously reduce emissions, cut costs, and drive growth.

International commitments like the Paris Agreement and the UN Sustainable Development Goals often feel far removed from the day-to-day realities of small businesses managing cash flow, wages, and rising input costs.

Initiatives such as the Sustainability Academy demonstrate how to close that gap. By equipping SMEs with knowledge of sustainability, tools to measure their environmental footprint, improve resource efficiency, and unlock access to green finance, the Academy shows that sustainability can be a driver of competitiveness rather than a compliance burden.

A small manufacturer that installs solar power cuts costs and also contributes to South Africa’s Just Energy Transition. Farmers who adopt climate-smart agriculture increase yields while building resilience to droughts. Logistics SMEs embracing electric mobility help decarbonise regional trade routes. These are practical steps already available to African businesses.

Financing remains the biggest barrier. The University of Cambridge Institute for Sustainability Leadership (CISL) estimates that enabling SMEs globally to transition will require USD 50 trillion in financing. Meanwhile, the OECD finds that SMEs struggle to access climate finance due to limited collateral, short credit histories and higher perceived risk. For African SMEs, the challenge is even greater.

This is where the G20 and B20 can be catalytic. By unlocking blended finance, climate-linked credit guarantees and concessional lending, this platform can ensure that sustainability is within reach for small businesses and large corporates.

South Africa’s presidency offers a rare chance to position SMEs as central to the global sustainability transition. By showcasing models like the Sustainability Academy, South Africa can highlight Africa’s innovation while pushing for global financing frameworks that reflect the realities of developing economies.

This presidency will influence international policy and set out a blueprint for how African SMEs, the real drivers of growth and jobs, can lead the transition to a greener, more resilient global economy.