In New Frontiers: African Sovereign Debt and ESG Risk, we leverage our Country Risk Ratings to analyze ESG risk among African countries. Our findings show country-level ESG risk and average sovereign credit ratings exhibit a strong positive correlation.
We also find substantial variation in the Country Risk Ratings of African countries. Only three African countries – Botswana, Mauritius and Morocco – have investment grade credit ratings and below average ESG risk. Of Africa’s top seven bond sellers this year, five (Egypt, Ivory Coast, Kenya, Lesotho and Nigeria) are rated as high ESG risk.