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The weight of silent criteria: ESG score performance and investment attractiveness in sub-Saharan Africa

Author

Listed:
  • Thierry Messie Pondie

    (UDs - Université de Dschang [Cameroun] = University of Dschang [Cameroon])

  • Amira Berriche

    (Université de Lille)

  • Dimitri Laroutis

    (CRIISEA - Centre de Recherche sur les Institutions, l'Industrie et les Systèmes Économiques d'Amiens - UR UPJV 3908 - UPJV - Université de Picardie Jules Verne, ESC Amiens)

Abstract

This article empirically examines the impact of ESG (Environmental, Social and Governance) scores on investment attractiveness in Sub-Saharan Africa, mobilizing a panel of data covering 40 countries over the period 2000-2023. The analysis is based on several econometric techniques, notably ordinary least squares (OLS) and generalized least squares (GLS), the results of which reveal a positive and statistically significant relationship between ESG performance and investment flows. The Kinky Least Squares (KLS) method was used to reinforce the robustness of the estimates and correct for potential endogeneity bias, confirming the robustness of the initial results. Furthermore, the inclusion of governance variables such as political stability, control of corruption and rule of law significantly enhances the attractiveness of the region's economies. These results suggest that improving ESG indicators, at both state and corporate levels, is a strategic lever for attracting investment in a sustainable way, and call for greater institutionalization of ESG practices in public policy and corporate reporting.

Suggested Citation

  • Thierry Messie Pondie & Amira Berriche & Dimitri Laroutis, 2026. "The weight of silent criteria: ESG score performance and investment attractiveness in sub-Saharan Africa," Post-Print hal-05441884, HAL.
    • Handle: RePEc:hal:journl:hal-05441884
    DOI: 10.1016/j.jenvman.2025.128192
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