Environmental, Social, and Governance (Esg) Reporting and Capital Market Response in Africa: A Systematic Review of Literature

Purpose: The paper focused on all-inclusive mixture of old and current qualitative and quantitative literature on the link between Environmental, Social, and Governance (ESG) reporting and capital market response in the style of ESG reporting to meet global standard. However, most African quoted companies have not indoctrinated ESG reporting style in their day-to-day financial and non-financial reporting due to lack of adoption of sustainability practices which make most companies in Africa not survive economic crisis and fail to attract foreign capital market investors. The paper systematically reviewed the link between ESG reporting and capital market response. Design/Methodology/Approach: Both qualitative and empirical evidences were amassed over the period of 2004-2025 but papers started download from year 2012-2025 as started by Scopus database, this insinuates no paper published in the Scopus database between 2004-2011. This period of 2004-2011, ESG reporting had not come to limelight style of reporting among quoted companies’ activities. The study reviewed 73 articles downloaded from Scopus database within the period of 2004-2025 through PRISMA guidelines. Findings: The review revealed that outside Africa context, the firm that full adopted ESG reporting enhance sustainability practices and attract domestic and foreign capital market investors which in turn improve firms’ contribution to green economic activities. Implication/Originality/Value: The systematic review indicates that ESG reporting by quoted companies create good and bad news response and companies that embrace ESG reporting improve sustainability practices which attract foreign capital market investors and such companies survive economic crisis. Despite global push by United Nation on sustainability practices and adoption, firms in Africa still face ESG reporting gap which hinder sustainability reporting quality of firms in developing countries like Africa. Thus, Government and capital market regulators should make it compulsory that before firm could be listed in the capital market and get license for operations in Africa, sustainability practices and sustainable development goals agenda must be embrace and consented to by firms as well as adopt ESG reporting framework which will enhance sustainable growth in Africa.