The ESG (environment, social, governance) criteria are becoming mainstream in the global investment landscape in the aftermath of the pandemic shock. The transition towards the ESG principles involves risks that have to do with the significant differentiation across countries in terms of values and preparedness to incorporate ESG standards. Developing economies will likely find it more challenging to compete with advanced economies in the speed of ESG transformation.

The pandemic has hit Least Developed Countries (LDCs) disproportionately, and it is encouraging that many of the initiatives adopted by the G20 have a direct positive bearing on LDCs’ economic prospects. However, although the G20 members are taking important initiatives to support vulnerable countries, these may well be insufficient. Moreover, the LDCs and African countries have still no representation in this setting, hence addressing the issue of Africa’s agency in the G20 is crucial to boost its legitimacy to take decisions concerning the Continent.