SUSTAINABILITY REPORTING QUALITY AND FINANCIAL SECTOR IN AFRICA: A CRITICAL MEASURES AND SYSTEMATIC REVIEW

Abstract

This paper offers all-inclusive synthesis of old and recent qualitative and quantitative literature on the participation of financial sector to sustainability practices in their style of reporting to meet international standard. Evidence accumulated over the last decade (2015-2025) indicates that financial institutions like banks, and microfinance banks that embrace sustainability reporting quality attract foreign investors and survive economic crisis. However, most African banks find it difficult to indoctrinate sustainability practices or SDGs in their reporting style which make most banks in Africa not survive economic crisis and fail to attract foreign investors. The paper examined how sustainability reporting quality indoctrinate in the activities of financial sector. The review revealed that banks and other financial institutions that embrace and adopt sustainability reporting quality compete and meet up international standard which enhance more foreign investors and improve economic growth. Despite broad push by United Nation sustainability commitments, financial institutions still face substantial accountability and transparency gaps which hinder sustainability reporting quality of banks in developing countries like Africa. Thus, policymakers and bank managers need to strengthen sustainability reporting quality to enhance transparency and align national practices with international standards which leads to sustainable growth in Africa.