South Africa is ahead of many countries in terms of corporate governance. Not only was the country at the forefront of factoring ESG issues into its exchange listing requirements, it now requires integrated corporate reporting.

In a previous global market sector report, Cornerstone Capital Group examined the significance of governance for country equity valuations using both “top‑down” (governance at the national level) and “bottom up” (governance at the corporate level) metrics — see Gauging Governance Globally: Macro and Micro Metrics, September 15, 2014.  If South Africa is treated as a stand-alone country rather than part of CEEMEA, it ranks much higher than either (i) the CEEMEA region as a whole or (ii) three European countries: Portugal, Spain and Italy.

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