Sub-Saharan African Economies Take ESG Seriously
Sub-Saharan African (SSA) economies are increasingly taking Environmental, Social, and Governance (ESG) issues seriously, despite the region accounting for only 4% of global emissions, as reminded by António Guterres, UN Secretary-General, at the 2023 African Climate Summit.
Large projects requiring international financing are systematically evaluated based on these criteria, reinforcing their importance.
According to the "Doing Deals in Sub-Saharan Africa 2024" report, this trend is expected to accelerate as the UN's Sustainable Development Goals (SDGs) for 2030 approach.
About 98% of financial investors and 89% of strategic investors expect ESG strategies to have a growing impact on transactions in Africa over the next two years.
Energy efficiency (44%) and greenhouse gas emissions (40%) dominate ESG priorities for transactions in sub-Saharan Africa. Many countries, such as Angola with its $1.3 billion electrification program, are investing heavily in renewable energy.
Green manufacturing is also emerging, with biomass projects in Namibia and Côte d'Ivoire.
ESG priorities vary by region: 63% of investors in East Africa prioritize climate change, compared to only 27% in Southern Africa.
This difference reflects distinct risk perceptions and business cultures. Investor pressure, particularly on climate issues, plays a key role, supported by increasing international regulations such as the European directive on corporate sustainability reporting, scheduled for 2025.
