At a time when the world is grappling with converging setbacks including climate change, rising commodity prices, economic instability and social injustices, the crisis in Ukraine further worsened these existing global challenges to sustainable development.  

The sanctions against Russia have resulted in a decline in trade and divestments of business activities, causing companies to withdraw, cease or terminate operations.  

As the crisis persists, African countries that heavily rely on Russia and Ukraine for imports, such as fuel and grain, are most vulnerable to these shocks. On the other hand, exports from the Sub-Saharan region to the two nations such as coffee, tea, tobacco, and fruit may be severely constrained. 

Manufacturers, for instance, are facing challenges in sourcing raw materials and intermediate goods, such as wheat, to be used in production. As such, trade has been greatly affected as routes face increased security scrutiny and logistics’ intermediation. Consequently, the continent is experiencing higher cost of production for many of its basic commodities.  However, the Ukraine crisis has magnified the importance of upholding a global value system as enshrined in the United Nations charter and other international law. 

The basis of the UN Global Compact’s work with the business community is anchored in its ten principles covering the areas of human rights, labor, environment, and anti-corruption, which are the core of peaceful societies and the conditions for resilient and sustainable markets. In times of crises, businesses are urged to embrace internationally recognised standards and work in solidarity with governments to rebuild trust and speed recovery. 

The business community has a role to play in reimagining the social contract and reinforcing public trust by forging stronger partnerships with the UN, Government and civil society that will lead to achievement of SDG 16. This cannot be accomplished without a demand for greater accountability, integrity, and transparency from all parties, as well as greater protection of fundamental freedoms and respect for the rule of law. 

The fight against climate change cannot be disregarded either. The immediate impact due to conflict has had tremendous environmental devastation and increased pollution, and resurgence of coal production in the guise of energy security. Perhaps there is a silver lining.   The conflict has exposed vulnerabilities associated with fossil fuels and the reliance on a few large exporters. Many countries have already begun decarbonization efforts and there is a solid reason to drive the renewable energy transformation with even greater urgency.  At the onset of the pandemic, companies were forced to rethink their supply chain vulnerabilities. With the Ukraine crisis, however, corporations are being pushed even harder to establish reliable supply chains, relocate activities closer to home, and reevaluate their recovery procedures. 

The Africa Continental Free Trade Area (AfCTA) is an immediate opportunity African Governments must tap. Now considered the world’s largest free trade area serving a market of 1.3 billion people, it has the potential to strengthen Africa’s self-reliance and lift majority of Africans from poverty. However, to work, this will require significant policy reforms and good will from the 55 member states. What else can businesses do in the face of severe future uncertainty? 

Creating sustainable backward linkages in the country and regional levels is essential in mitigating global supply chain disruptions, to supplement the shortage that may arise out of crises.   Kenya must prioritize self-sufficiency in light of the pandemic’s economic lessons and the Ukraine-Russia war. This includes implementing policies that promote growth of local industries rather to curb our heavy dependence on imports.  With humanitarian aid urgently required, businesses can now play their part as good corporate citizens. Kenya is a strong nation because the private sector has been pivotal in setting a strong foundation and taking concrete action towards a swift recovery and a promising future. 

 —The writer is the Executive Director of Global Compact Network Kenya — [email protected]