Why cooperatives matter in just transition to sustainability

As countries accelerate efforts toward more sustainable and low-carbon economies, increasing attention is being given not only to environmental outcomes, but to how the transition is structured—and who it benefits.

Across Africa, the concept of a just transition is gaining traction. It reflects a growing recognition that sustainability must be pursued in a way that protects livelihoods, supports economic participation, and avoids deepening existing inequalities.

A key part of this discussion is the role of cooperative and collective business models. These models, which are widely used across sectors such as agriculture, finance, and small-scale manufacturing, enable shared ownership and collective decision-making. In doing so, they provide a pathway for individuals and communities—particularly those operating in informal or rural economies—to participate more meaningfully in economic systems.

This is particularly important in the context of sustainability. As environmental standards evolve and global markets place greater emphasis on responsible sourcing and climate resilience, smaller producers and businesses risk being excluded if they are unable to meet new requirements independently.

Cooperatives can help address this challenge by pooling resources, improving access to finance, and strengthening market access. They also create opportunities for shared investment in sustainable practices, enabling members to adapt to changing environmental and economic conditions more effectively.

Beyond their economic function, cooperative models also support social outcomes. By promoting inclusive participation and local ownership, they contribute to more equitable distribution of benefits and help build resilience at a community level.

However, ensuring that these models are effectively integrated into broader sustainability strategies remains a challenge. In many cases, financial systems, investment frameworks, and policy environments are not fully aligned to support inclusive approaches. This creates a disconnect between sustainability ambitions and the realities faced by smaller or less formal economic actors.

Addressing this gap will be critical to the success of sustainability efforts across the continent. Without deliberate inclusion, there is a risk that the transition to greener economies could reinforce existing disparities rather than reduce them.

As the sustainability agenda continues to evolve, there is growing consensus that environmental progress cannot be separated from economic and social considerations. A just transition—one that is inclusive, locally grounded, and economically viable—will be essential to ensuring that sustainability delivers long-term benefits across all levels of society.