Since the unanimous endorsement of the United Nations Guiding Principles on Business and Human Rights (UNGPs) by the UN Human Rights Council in 2011, a new era of socially responsible and sustainable business has taken shape and continues to build momentum.  Under the UNGPs, all business enterprises have a responsibility to respect human rights, and the process of continuously conducting human rights due diligence (HRDD) is a core requirement for fulfilling that responsibility.  HRDD has rapidly evolved from a voluntary approach to a legal obligation in multiple jurisdictions.  For African businesses, this changing landscape offers both strategic opportunities and practical hurdles as they seek to integrate global Business and Human Rights (BHR) standards with domestic legal and operational contexts.

Global legislative developments

1. European Union (EU) initiatives

Over the past decade, several European countries have enacted or proposed mandatory HRDD legislation.  France was among the first with its Duty of Vigilance Law, which requires large French companies to establish and implement HRDD plans.  Germany followed with its Supply Chain Due Diligence Act, obliging in-scope companies to exercise human rights and environmental due diligence across their supply chains.  The EU's proposed Corporate Sustainability Due Diligence Directive (CSDDD) aims to harmonise these requirements across member states. It will compel companies of certain sizes—both EU-based and non-EU-based with significant EU activities—to establish and maintain due diligence processes in relation to human rights and environmental impacts.  Beyond the CSDDD, additional EU regulations mandate varying levels of HRDD in specific sectors and industries, including the EU Conflict Minerals Regulation, the EU Forced Labor Regulation, the EU Deforestation Regulation and the EU Battery Regulation.  These are part of an ever-growing list of mandatory HRDD and supply chain due diligence instruments.

2. South Korea's proposed HRDD legislation 

South Korea recently reintroduced the country's first corporate human rights and environmental due diligence legislation.  Intended to hold in-scope companies accountable for adverse human rights impacts in their operations and supply chains, this legislation draws on European precedents and reflects a broader trend across Asia towards codifying HRDD obligations.  It builds on growing regional discussions about corporate accountability for rights violations and environmental harm.

3. Norway's Transparency Act

In force since 1 July 2022, Norway’s Transparency Act was one of the first mandatory HRDD laws to focus specifically on transparency and public accountability. It requires large companies domiciled in or offering goods or services in Norway to conduct due diligence aligned with the OECD Guidelines for Multinational Enterprises and to publish an annual due diligence statement. The Act grants individuals the “right to information”, enabling anyone to request details about how a company addresses adverse human rights and labour conditions in its supply chains. In 2024, the Norwegian Consumer Authority issued its first fine, NOK 450,000, for non-compliance with this provision. Although the fine was overturned on appeal, it served as a warning that non-compliance could carry tangible consequences. Ahead of the 2025 reporting deadline, companies are expected to ensure board-level sign-off and make their reports easily accessible to the public. Norway’s model provided a useful benchmark as other jurisdictions consider similar frameworks combining due diligence with enforceable transparency obligations.

4. Other Asian and global developments

Beyond South Korea, HRDD discussions have emerged in several Asian jurisdictions alongside increased scrutiny of supply chain practices—particularly in China—to address potential labour rights violations.  These developments are often inspired by international precedents and highlight the globalisation of HRDD as a normative expectation rather than a purely Western construct.

Opportunities and challenges for African businesses

Mandatory HRDD presents African businesses with several key opportunities, beyond improved corporate governance:

• Enhanced global market access: Compliance with HRDD frameworks in major export markets (such as the EU) positions African businesses as preferred partners for global buyers, investors, and financial institutions that value strong human rights and environmental safeguards.
• Improved risk management: Systematic identification and mitigation of human rights risks can reduce legal and reputational exposure, strengthen stakeholder relationships and contribute to overall operational resilience.
• Attracting responsible investment: Development finance and impact investors increasingly assess companies based on their HRDD performance. Proactive African businesses may secure partnerships and funding by demonstrating a clear commitment to responsible business conduct.
• Alignment with continental and regional frameworks: HRDD aligns conceptually with the African Charter on Human and Peoples’ Rights and various regional initiatives. National BHR action plans have already been adopted in Kenya, Uganda, Nigeria and Liberia, with others expected to follow. Harmonising these frameworks can promote consistent, context-sensitive implementation of HRDD across the continent. 
• At the same time, African businesses may face several challenges in meeting emerging HRDD standards:
• Fragmented regulatory environments: Many African jurisdictions have yet to enact detailed HRDD legislation.  Businesses must navigate a patchwork of laws, voluntary guidelines, and novel contractual obligations, some of which impose HRDD in the absence of legislative mandates.  Bridging the gap between stringent external expectations and less comprehensive local frameworks can be both difficult and resource-intensive.
• Capacity constraints: Implementing robust HRDD requires detailed supply chain mapping, nuanced stakeholder engagement, and people-centred risk assessments. These tasks can be challenging for businesses lacking appropriate technical expertise, reliable data, or dedicated HRDD resources. Smaller and medium-sized enterprises (SMEs), in particular, may find these requirements onerous and costly.
• Limited local enforcement: Even where human rights protections exist in national laws, enforcement may be inconsistent. Businesses aiming to follow international best practices often face weak enforcement of local rules. This misalignment can cause confusion around compliance benchmarks and result in duplicative efforts.
• Potential tensions with local realities: In some contexts, global expectations on labour rights, environmental safeguards, or community engagement may not align seamlessly with local laws, business practices or socio-economic conditions. Friction may arise when implementing comprehensive HRDD measures in settings where fundamental rights protections are still evolving.
• Supply chain complexity: As global supply and value chains grow more complex, businesses may struggle to meet overlapping, and sometimes divergent, HRDD requirements across jurisdictions. Companies should note the scope of HRRD extends beyond their operational footprint to their entire value chain.  A business may fall under HRDD laws based on where it operates, or because it is a customer or supplier to an in-scope company with cascading compliance obligations.

African business can adopt several strategies to align with evolving HRDD requirements:

• Engage in multi-stakeholder dialogue: Collaboration with governments, civil society organisations, trade unions, and local communities can help businesses contextualise global frameworks. This inclusive approach builds trust, identifies shared priorities, and ensures that HRDD measures are practical and locally relevant.
• Develop scalable due diligence and compliance programmes: HRDD processes should be tailored to the size, sector, and geographic reach of each business.  Large multinationals may invest in comprehensive management systems, while SMEs may begin with pilot projects, streamlined checklists, tailored training, and external advisory support to build HRDD capacity.
• Map the supply chain:  Companies should identify and understand all the entities involved in the journey from raw materials to end customers. Human rights abuse often occur in upstream or indirect supplier relationships, which can expose businesses to liability.  Mapping exercises help identify risk hot spots and enable tailored action plans based on a business’s degree of influence and the nature of its relationships.
• Leverage and harmonise regional frameworks: Aligning with African continental instruments such as the African Charter on Human and Peoples’ Rights, the Nairobi Declaration on African Business and Human Rights, and the African Continental Free Trade Area Agreement (AfCFTA), can support harmonisation and stakeholder buy-in.  While the AfCFTA does not expressly require HRDD, its protocols may catalyse broader conversations around labour standards, ethical supply chains, and sustainable development paving the way for regionally aligned HRDD standards.
• Invest in capacity building and training: Both public and private sector collaboration is vital to improving HRDD awareness.  Training employees, hosting industry workshops, and supporting government-led programmes can promote consistent and effective implementation of BHR principles.

Global momentum toward mandatory HRDD presents African businesses with a strong incentive to adopt robust human rights practices. This shift is not without challenges: complying with a myriad of international and local regulations requires substantial effort, investment in capacity-building, and careful navigation of local contexts.  Yet it also presents opportunities for businesses to expand global market access, enhance operational risk management, and attract responsible investment.

By engaging in multi-stakeholder cooperation and leveraging regional legal frameworks, African companies can align with emerging international norms while remaining responsive to local realities.  In doing so, they can meaningfully contribute to sustainable development and community well-being, fulfilling the promise of business as both a driver of prosperity and a guardian of fundamental human rights.

Written by Paula-Ann Novotny and Pooja Dela-Cron, Partners at Webber Wentzel