The Southern African Development Community (SADC) Secretariat and the United Nations Development Programme (UNDP), with financial support from the European Union (EU), are developing a common framework to help countries assess sustainable investments across borders.

A regional inception workshop on 9 October 2026 brought together representatives of Member States, financial institutions and development partners to discuss initial findings and the proposed approach. The initiative is led by the SADC Secretariat, with technical support from UNDP and EU financing through its Sustainable Finance Advisory Hub.

Sustainable finance taxonomies set criteria for identifying economic activities that contribute to sustainability objectives. Differences among national systems can make investments harder to assess and compare. The SADC Common Framework for Sustainable Finance Taxonomies will provide shared principles to help national systems work together, while respecting each country’s circumstances and development priorities.

The framework will offer voluntary guidance to SADC’s 16 Member States, initially focusing on climate change mitigation and adaptation. It aims to help mobilize finance for activities that reduce emissions and build resilience to climate shocks.

The regional approach has a precedent in Latin America and the Caribbean, where a common framework was developed to improve compatibility among national taxonomies and facilitate sustainable investment across borders.

Opening the workshop, Yolanda Sabino, Director of Finance, Investment and Customs at the SADC Secretariat, emphasized the importance of regional cooperation. She highlighted the need for common principles that support consistency among national approaches while respecting countries’ development priorities.

Maxwell Gomera, UNDP Resident Representative in South Africa and Director of the UNDP Africa Sustainable Finance Hub, called for guidance that financial institutions can use in lending and investment decisions. He stressed that small enterprises should be able to demonstrate their contribution to sustainability without excessive administrative demands.

Catalin Gherman, Head of Partnerships at the EU Delegation to Botswana and SADC, reaffirmed the EU’s support and underlined the importance of connecting the technical work to benefits for businesses, jobs and livelihoods.

The next phase will combine further regional assessment with preparation of the draft framework, followed by technical consultations and validation with Member States. Input from the sectors that will use the guidance will help ensure that it reflects the region’s economic conditions and the needs of its financial markets.