The adoption of environmental, social and governance
(“ESG”) criteria is on the rise,
unlocking capital for ESG compliant projects. Despite
Africa's diverse natural resources, renewable energy
potential, human capital and significant development opportunities,
connecting investors (many situated offshore) with investees on the
continent is not straight forward. This gives rise to missed
opportunities and stifles the ability of ESG investment to flow
into projects in Africa that would otherwise support ESG investment
mandates. African investees need to position themselves to take
advantage of ESG-related opportunities to appeal to investors.
ESG in the EU
The EU has taken many steps in recent years to promote ESG in
regulatory environments and markets. This includes the Action Plan
on Financing Sustainable Growth (2018) and the European Green Deal
(2019), and the EU is considering imposing a carbon border
adjustment mechanism, more commonly referred to as a carbon
