It is difficult to accurately measure the size of the SRI market in sub-Saharan Africa. This is because of the range of strategies employed and the fact that the majority of surveys rely on self-reported information, which does not interrogate the quality of SRI implementation. As a result, it can be argued that the surveys below significantly overstate the current extent of SRI in the region.
A 2011 study backed by the World Bank’s IFC found that USD5.5 billion out of a total USD598.5 billion assets under management in South Africa, Nigeria and Kenya were explicitly ESG inclusive and being marketed as such (i.e. approximately 1%). Of this, USD1.3 billion was in private equity while the balance was in general asset management. An additional USD125.3 billion or 21% of assets included ESG factors as part of an ESG-integrated strategy but weren’t necessary branded as “sustainable” or “responsible”.
More recently, using disclosures up to 31 December 2014, the Bertha Centre for Social Innovation’s African Investing for Impact Barometer 3rd Edition found that 47% of funds managed out of USD721 billion of investment assets in South Africa, Nigeria and Kenya claim to use one or more SRI strategy. Of the USD678 billion managed in South Africa, 70% of funds managed claim to use one or more SRI strategy. This figure drops to 48% and 23% in Kenya and Nigeria respectively.