The most common reason African companies lose out on investment isn’t valuation—it’s ESG red flags discovered during due diligence. Knowing what investors look for before they look saves time, money, and deal prospects.

Article Summary: ESG Due Diligence

• This insider’s guide reveals what happens during ESG due diligence processes used by international investors evaluating African companies.
• The article is structured around the three ESG pillars, explaining exactly what documentation, policies, and practices investors examine.
  • The Environmental section covers permits, waste management, energy use, and climate risk exposure.
  • The Social section addresses labor practices, community relations, health and safety, and human rights.
  • The Governance section examines board structure, ownership transparency, anti-corruption measures, and regulatory compliance.
• The piece includes a self-assessment tool companies can use before fundraising, discusses how ESG issues affect valuation, and explains how to address ESG weaknesses discovered during diligence.
• Special focus on deal-killers versus negotiable issues.

Target Audience:

Company founders, CFOs preparing for fundraising, M&A advisors, private equity professionals, venture capitalists