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Institutional Enablers Of Esg Adoption In Sub-Saharan Africa: A Systematic Review Of Sustainable Corporate Governance And Firm Performance

Author

Listed:
  • CHIPIMO Mubanga Lackson

    (School of Postgraduate Studies, University of Lusaka, Zambia)

  • BWALYA John

    (Dag Hammarskjöld Institute for Peace and Conflict Studies, Copperbelt University, Zambia)

  • KANYANGA Joseph Katongo

    (Office of the Vice Chancellor, City University of Science and Technology, Zambia)

Abstract

The review explores how institutional factors impact upon the uptake of Environmental, Social and Governance (ESG) practices in Sub-Saharan Africa (SSA) and examines the link between ESG implementation and firm performance. In accordance with the PRISMA 2020 guidelines, 6 peer-reviewed empirical and review articles, published between 2020 and 22 June 2025, were identified and synthesized with a systematic data extraction and thematic analysis using the Theory, Context, Characteristics, Methodology (TCCM) framework. The thematic analysis indicates that governance structures especially board independence and regulatory oversight are the most important institutional drivers of ESG adoption and firm-level outcomes. Additionally, meta-analytic results show a significant positive effect of ESG on firm performance (r = 0.287, 95% CI [0.146, 0.418]). The between-study heterogeneity in this meta-analysis was low, I² = 0%. However, environmental and social dimensions remain underdeveloped. This study offers a critical point of reference for the contextual understanding of ESG in African markets. Further rigorous and multi-level studies are needed to examine firm-level practices and broader policy contexts using a range of research methodologies. This is among the first studies to combine systematic review and meta-analytic techniques to evaluate ESG adoption in sub-Saharan African (SSA) context.

Suggested Citation

  • CHIPIMO Mubanga Lackson & BWALYA John & KANYANGA Joseph Katongo, 2025. "Institutional Enablers Of Esg Adoption In Sub-Saharan Africa: A Systematic Review Of Sustainable Corporate Governance And Firm Performance," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 105-118, December.
  • Handle: RePEc:blg:msudev:v:17:y:2025:i:2:p:105-118:n:7
    DOI: https://doi.org/10.54989/msd-2025-0015
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