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2023 | OriginalPaper | Buchkapitel

2. ESG in Africa: Relevance and Applicability

verfasst von : Karamo NM Sonko, Mariama Sonko

Erschienen in: Demystifying Environmental, Social and Governance (ESG)

Verlag: Springer International Publishing

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This chapter lays out the case and argues for the relevance of ESG in Africa. However, it points out that norms of international practices and conventions applied in the developed countries must not be expected overnight in Africa. This includes attention to ESG, which (as stressed and proven in this book) is a new phenomenon, about which there is little knowledge at the moment. Nevertheless, the knowledge is growing and ESG can play a very important role in tackling the continent’s environmental, economic, and social challenges and, thus, enhance economic growth and benefit the private sector/businesses, communities and others in both the short and long runs. It draws attention to the possibilities that ESG offers for public–private partnerships for the national good, including the good of the businesses themselves, in Africa.

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In fact, we maintain throughout this book that sustainability is for all, even individuals. This book is written with the world in mind and Africa at hand.
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The consumption of rice and wheat have expanded in Sub-Africa in per capita terms. In West Africa, for instance, it is now more than 60 kilogrammes per capita annually, on average, and more than the global average. Getachew Nigatu, James Hansen, Nathan Childs, and Ralph Seeley, “Sub-Saharan Africa Is Projected To Be the Leader in Global Rice Imports,” in USDA Agricultural Projections to 2026, ed. Erik O'Donoghue, and James Hansen, USDA Agricultural Projections to 2026. OCE, February 2017. Wheat consumption, as shown by imports, surged by 68% from 2007 to 2019; Michael King, “Wheat Consumption Rising in Africa,”, https://​www.​world-grain.​com/​articles/​11655-wheat-consumption-rising-in-africa, July 15, 2022.
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The approach is developed by Khan and Parvin (1984).
In an axiomatic approach to inequality comparisons, Fields and Fei introduce the three axioms in Gary S. Fields, and John C. H. Fei, “On Inequality Comparisons”, Econometrica, Vol. 46, No. 2 (March, 1978).
For mathematical convenience we use Rn. It should be noted that income can be expressed by integers through the smallest monetary unit available (e.g. counting by pennies). Accordingly, the rational numbers will suffice for normalization of income. For cardinal analysis, Fields and Fei include irrational numbers in X and exclude negative numbers, relative to us.
Debreu (1959) defines a reordering as a relation that is reflexive and transitive. Fields and Fei do not include reflexivity.
A. K. Sen, On Economic Inequality. Oxford: Clarendon Press, 1973, calls this expressively the axiom of anonymity.
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The axiom of scale irrelevance is not as reasonable as the other two axioms. If material well-being is the ultimate object of inquiry, then the absolute level of income cannot be ignored. However, if the axiom relates to units of measurement, then this objection does not arise.
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Khan and Parvin, “Environment, Externalities and Income.”
Note that at this stage not all opportunity costs (e.g. earning loss due to illness) are included and all public goods are excluded.
It is known that families living in inner-city slums are subjected to a proportionally greater amount of negative externalities like crime, pollution, and noise.
It is possible to construct an increasing \({h}_{i}\) that could not violate our propositions, but that is not necessary.
See, for example, Daniel Hammermesh, and Albert Rees, Economics of Work and Pay. New York: Harper & Row, 1984, p. 285.
The case of the Sen Index (1974), for instance, has been discussed in Khan and Parvin, “Environment, Externalities and Income,” unpublished paper, University of Denver, 1990.
See H. A. Khan, “Japanese Foreign Aid,” Journal fur Entwicklungs Politik (1994).
Mckinsey Global Institute, “COVID-19 and Gender Equity: Countering the Regressive Effects,” July 15, 2020; Mckinsey Global Institute, “Women in the Workplace 2021,” September 27, 2021.
For Instance, in 2015, 36 IFC-supported financial intermediaries in Sub-Saharan Africa provided gender-disaggregated data which showed that the non-performing loans of the women borrowers were lower than the NPLs or those of the men. Saulo Teodoro Ferreira, Sub-Saharan Africa: IFC Financing to Micro, Small and Medium Enterprises. Washington, DC: IFC, n.d., p. 2, https://​www.​smefinanceforum.​org/​sites/​default/​files/​IFC_​Factsheets_​SSA.​pdf, March 28, 2022.
The definition of the youth is not standard. Although always defined according to the age, the age bracket or the lower and upper limits for what is defined as the youth may be different according to the author or organization. The most official definition is that by the UN “those persons between the ages of 15 and 24 years,” endorsed by the UN General Assembly in resolution 36/28 of 1981. See UN, Global Issues. Youth. https://​www.​un.​org/​en/​global-issues/​youth#:​~:​text=​Today%2C%20​there%20​are%20​1.​2%20​billion,cent%2C%20​to%20​nearly%20​1.​3%20​billion.
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Data collected and analysed from the beginning of August to the end of October 2022, through questionnaires distributed and completed on the spot by survey assistants to 207 Gambian companies; 41% of the entire registered membership of the Gambia Chamber of Commerce and Industry (GCCI), which statistically represents about 95% level of confidence with 5% margin of error. The survey team was led by Abdoulie D. Bah, Executive Director, African Youth Entrepreneurship Academy (The Gambia).
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In an analysis, of the energy transition in Africa the International Renewal Energy Agency (IRENA) and the African Development Bank (AfDB) found that an integrated policy framework for the transition could attract a wave of sustainable energy investments to the continent which can in turn boost economic output by 6.4% (Renewable Energy Market Analysis: Africa and its Regions. Abu Dhabi: IRENA, 2022).
ESG in Africa: Relevance and Applicability
verfasst von
Karamo NM Sonko
Mariama Sonko