UK and EU Companies Face Compliance Challenges in Africa’s Supply Chains Amid Growing Sustainability Laws

Nancy Fischer, International Trade partner and Global Head of Pillsbury’s Regulatory practice, noted that concerns about environmental sustainability and human rights compliance in Africa are heightened due to the region’s involvement in processing raw materials, as well as the distinct socio-economic conditions of its countries.

“Regulations such as the CSDDD and the EUDR bring a significant compliance burden, especially for companies with complex, global supply chains,” she said.

When examining instances where verification is necessary to ensure such materials are not linked to deforestation, Fischer said “this requires geolocation capabilities and real time monitoring tools.”

“Manually gathering and verifying this information across multiple tiers of suppliers is costly and logistically challenging, particularly for materials sourced from regions with limited transparency or regulatory infrastructure,” she added.

Additionally, with digital technology playing a large role in supply chain transparency, Fischer said that “AI can analyze patterns to detect signs of deforestation or illegal logging by cross-referencing geolocation data with satellite imagery.”

Fischer further explained that the African Continental Free Trade Area, an agreement covering most of the continent that reduces tariffs and implements other measures, helps promote digital trade systems that could enable real-time tracking and traceability in African supply chains.

“Advances in supply chain transparency across Africa are evident through the adoption of blockchain and other innovative solutions in sectors such as agriculture and renewable energy,” she concluded.