Knowledge


Ganesh Ramaswamy
Ganesh Ramaswamy
Partner at Kreston Rangamani and Associates LLP, Global Tax Group Regional Director, Asia Pacific

Ganesh has extensive experience of more than 30 years in providing specialist tax services, particularly to large privately owned groups, with particular strengths in the property, retail, healthcare and hospitality industries. He has supported various entities with specialist advice on tax-effective structures and restructures, cross-border transactions on account of outbound and inbound India investments, mergers, acquisitions and divestments. Ganesh has also worked with stakeholders across businesses to deliver solutions such as tax due diligence, tax consolidation and restructuring of large family businesses in the Middle East, Asia, and Singapore.

Tarek Zouari
President of EXCO Africa and Chair of Kreston's Africa regional committee

Join Tarek Zouari  on LinkedIn

Founder and Managing Partner of Exco Tunisia, is an experienced professional with over 20 years of international expertise in assisting foreign investors, managing finance and audit functions, and providing legal, tax, and social advice for Tunisian and European companies expanding their business in Africa & Middle East.

Tarek is a Member of National Order of Chartered Accountants and Statutory Auditors of Tunisia. He is Chair of Kreston’s Africa steering committee and is Managing Director and President of Exco Africa network.


ESG Reporting in Africa

June 7, 2023

Sector: ESG

ESG reporting is becoming increasingly important for companies across Africa, as investors and other stakeholders look for more information about how companies are managing their environmental, social, and governance risks and opportunities.

South Africa is one of the leading countries in Africa when it comes to ESG reporting. The Johannesburg Stock Exchange (JSE) has a Sustainability Reporting Directive that requires all listed companies to report on their ESG performance. The directive is aligned with the Global Reporting Initiative (GRI) Standards, which are a set of international standards for sustainability reporting.

Tunisia is another country that is making progress in ESG reporting. The Tunisian Financial Market Authority (AMF) has issued a guide on ESG reporting for listed companies. The guide recommends that companies report on their ESG performance in line with the GRI Standards.

Mozambique is also taking steps to promote ESG reporting. The Mozambican Stock Exchange (BVM) has launched a sustainability reporting initiative for listed companies. The initiative aims to encourage companies to report on their ESG performance and to provide investors with more information about how companies are managing their ESG risks and opportunities.

Kenya is another country that is seeing an increase in ESG reporting. The Nairobi Securities Exchange (NSE) has launched a sustainability reporting initiative for listed companies. The initiative aims to encourage companies to report on their ESG performance and to provide investors with more information about how companies are managing their ESG risks and opportunities.

Challenges in Africa

There are a number of challenges that companies face when it comes to ESG reporting in Africa. One challenge is the lack of harmonized standards for ESG reporting. There are a number of different frameworks and standards that companies can use to report on their ESG performance, which can make it difficult for investors to compare the performance of different companies.

Another challenge is the lack of data. Many companies in Africa do not have the resources to collect and report on ESG data. This can make it difficult for companies to assess their ESG performance and to report on their progress to stakeholders.

Despite the challenges, ESG reporting is becoming increasingly important for companies across Africa. Investors and other stakeholders are looking for more information about how companies are managing their ESG risks and opportunities. Companies that can demonstrate good ESG performance are likely to be more attractive to investors and other stakeholders.

Benefits of ESG reporting

The following are some of the benefits of ESG reporting for companies:

  • Improved investor relations: ESG reporting can help companies to attract and retain investors by providing them with more information about the company’s ESG performance.
  • Reduced risk: ESG reporting can help companies to identify and manage their ESG risks. This can help to reduce the company’s overall risk profile and to protect its reputation.
  • Improved brand reputation: ESG reporting can help companies to improve their brand reputation by demonstrating their commitment to sustainability.
  • Increased sales: ESG reporting can help companies to increase sales by attracting more customers who are interested in supporting sustainable companies.
  • Reduced costs: ESG reporting can help companies to reduce their costs by identifying and eliminating inefficiencies.
  • Improved employee morale: ESG reporting can help to improve employee morale by demonstrating the company’s commitment to sustainability.

Challenges of ESG reporting

The following are some of the challenges of ESG reporting for companies:

  • Cost: ESG reporting can be expensive to implement. Companies need to invest in time and resources to collect and report on ESG data.
  • Time: ESG reporting can be time-consuming. Companies need to collect and analyze data, develop reports, and communicate their results to stakeholders.
  • Complexity: ESG reporting can be complex. There are a number of different frameworks and standards that companies can use to report on their ESG performance. This can make it difficult for companies to choose the right framework and to comply with the requirements of different stakeholders.
  • Lack of data: Many companies in Africa do not have the resources to collect and report on ESG data. This can make it difficult for companies to assess their ESG performance and to report on their progress to stakeholders.

Despite the challenges, ESG reporting is becoming increasingly important for companies across Africa. Investors and other stakeholders are looking for more information about how companies are managing their ESG risks and opportunities. Companies that can demonstrate good ESG performance are likely to be more attractive to investors and other stakeholders.