The importance of Environmental, Social, and Governance (ESG) criteria has risen to the forefront of global investment strategies and policy-making primarily because they help gauge a country’s approach to environmental issues as well as how it governs its people and economy.
Why are ESG Ratings Important
ESG ratings are important because they directly influence investment decisions. Countries with higher ESG scores often attract more foreign direct investment than countries with lower ESG scores.
According to the 2024 index, Mauritius ranks first in Africa with the highest overall governance index score, followed by Namibia and South Africa, both of which have strong scores in press freedom and political rights.
Each country is evaluated based on its global rank and scores in key areas such as governance, rule of law, press freedom, political rights, and corruption.
Here are the top 10 African nations leading in ESG rankings as of 2024.
| Country | Grade (A-E) | Rank | World Economics Governance Index |
|---|---|---|---|
|
Mauritius |
B |
1 |
69.9 |
|
Namibia |
B |
2 |
67.0 |
|
South Africa |
B |
3 |
63.8 |
|
Botswana |
B |
4 |
63.7 |
|
Ghana |
B |
5 |
62.3 |
|
Malawi |
C |
6 |
54.2 |
|
Senegal |
C |
7 |
53.3 |
|
Tunisia |
C |
8 |
50.0 |
|
Sierra Leone |
C |
9 |
49.5 |
|
Gambia |
C |
10 |
48.3 |
