CORPORATE GOVERNACE CORPORATE GOVERNACE AND POVERTY AND POVERTY

ALLEVIATION IN AFRICAALLEVIATION IN AFRICA

Paper presented by Mr. Karugor Gatamah, E.D. Paper presented by Mr. Karugor Gatamah, E.D. PSCGT at the International Seminar on PSCGT at the International Seminar on

Corporate Governance & Development of Corporate Governance & Development of Appropriate Codes Appropriate Codes

andand Accountants’ Annual Dinner, TanzaniaAccountants’ Annual Dinner, Tanzania

October 31, 2002 to November 1, 2002October 31, 2002 to November 1, 2002

IntroductionIntroduction

Creating adequate opportunities for fully Creating adequate opportunities for fully productive employment of all members productive employment of all members of society who are willing and able to of society who are willing and able to work, is central to the economic work, is central to the economic development of a country. Full and development of a country. Full and productive employment is the only productive employment is the only means of creating a society in which all means of creating a society in which all individuals have a share in the creation individuals have a share in the creation of the wealth of the nation. Unless of the wealth of the nation. Unless wealth is created, poverty cannot be wealth is created, poverty cannot be alleviated.alleviated.

Employment enables the people to Employment enables the people to provide for themselves. Such people provide for themselves. Such people may in turn, also create employment may in turn, also create employment for others, by enlisting their services for others, by enlisting their services for various purposes. In addition, for various purposes. In addition, employment ensures that the employment ensures that the spending power so created, spending power so created,

04/18/2304/18/23 44

expands the market for goods and expands the market for goods and services, and there is a chance for services, and there is a chance for people to invest some of their earnings, people to invest some of their earnings, in effect leading to creation of wealth. It in effect leading to creation of wealth. It is from such investments from the is from such investments from the productive sector of the economy that productive sector of the economy that the government earns its revenue in the government earns its revenue in the form of taxes and other levies.the form of taxes and other levies.

It has been stressed that focused It has been stressed that focused intelligence is the new source of intelligence is the new source of wealth. It is vital to have persons wealth. It is vital to have persons with focused intelligence in with focused intelligence in leadership positions of business leadership positions of business enterprises or other positions of enterprises or other positions of decision-making in society. There is decision-making in society. There is need for accountability, need for accountability, transparency and leadership for transparency and leadership for probity from people in management probity from people in management positions in society. positions in society.

04/18/2304/18/23 66

Leaders of business enterprises and Leaders of business enterprises and corporations must be of the cadre corporations must be of the cadre that can propel enterprises from that can propel enterprises from where they are presently, to a higher where they are presently, to a higher position in future. It is only in this position in future. It is only in this way that various businesses can way that various businesses can grow, hence forming a basis for grow, hence forming a basis for wealth creation in a country.wealth creation in a country.

Challenges to development in Challenges to development in AfricaAfrica

Africa has over the years been Africa has over the years been characterized by extremely low characterized by extremely low productivity and generally, poor productivity and generally, poor performances of business enterprises. performances of business enterprises. This has been due to a number of This has been due to a number of debilitating factors, prime amongst debilitating factors, prime amongst them being the crisis in leadership. them being the crisis in leadership.

04/18/2304/18/23 88

There is a lack of political There is a lack of political commitment and crisis of legitimacy commitment and crisis of legitimacy largely due to the concentration of largely due to the concentration of political and economic power as well political and economic power as well as wealth in the hands of a small, as wealth in the hands of a small, privileged and entrenched political privileged and entrenched political and economic elite. This scenario has and economic elite. This scenario has bred mistrust and suspicion.bred mistrust and suspicion.

All over the world, countries are All over the world, countries are struggling to expand their economies struggling to expand their economies and improve living standards. This and improve living standards. This struggle is particularly poignant in Africa, struggle is particularly poignant in Africa, which has for a long time been mired in which has for a long time been mired in declining economic performance, rising declining economic performance, rising unemployment, deteriorating national unemployment, deteriorating national infrastructure and increasing and abject infrastructure and increasing and abject poverty.poverty.

The primacy of peace and security, both The primacy of peace and security, both at national and regional levels as a at national and regional levels as a prerequisite to sustainable development, prerequisite to sustainable development, cannot be over-emphasized. Without cannot be over-emphasized. Without durable peace and the security of life, durable peace and the security of life, property and national borders, it is not property and national borders, it is not possible for citizens, economic actors possible for citizens, economic actors and governments alike to plan, and governments alike to plan, implement and undertake all the implement and undertake all the necessary activities that are required so necessary activities that are required so urgently to arrest the protracted decline urgently to arrest the protracted decline and stagnation in the region. and stagnation in the region.

04/18/2304/18/23 1111

Persistent internal conflicts and strife Persistent internal conflicts and strife as well as external aggression, have as well as external aggression, have forced the poorest region in the forced the poorest region in the world to divert such vast proportions world to divert such vast proportions of its resources that the very survival of its resources that the very survival of an increasing number of African of an increasing number of African countries may be at risk.countries may be at risk.

The greatest threat to peace in Africa The greatest threat to peace in Africa and developing countries generally, and developing countries generally, remains internal conflict. Although remains internal conflict. Although external factors play important roles in external factors play important roles in these conflicts, by and large, most of these conflicts, by and large, most of the internal wars and threats to national the internal wars and threats to national peace including civil wars and border peace including civil wars and border conflicts have been perpetrated by conflicts have been perpetrated by Africans themselves.Africans themselves.

Social inequalities and ethnic conflicts Social inequalities and ethnic conflicts are also characteristic of Africa. The are also characteristic of Africa. The inequalities inherent in African societies inequalities inherent in African societies are principally visited upon social are principally visited upon social groups that unfortunately also bear the groups that unfortunately also bear the brunt of economic and social difficulties. brunt of economic and social difficulties. Social inequalities are more often than Social inequalities are more often than not, intricately tied to the ethnic not, intricately tied to the ethnic conflicts which rather than being the conflicts which rather than being the main cause of social upheaval, are main cause of social upheaval, are largely a façade for the much more largely a façade for the much more complex social or political situations of complex social or political situations of injustice, inequality and domination.injustice, inequality and domination.

Entrenched corruption, lack of respect Entrenched corruption, lack of respect for human rights, inefficient for human rights, inefficient bureaucracies and weak commitment bureaucracies and weak commitment to undertaking policy and institutional to undertaking policy and institutional reforms are all inimical to the reduction reforms are all inimical to the reduction of poverty. AIDS has only emerged to of poverty. AIDS has only emerged to aggravate the situation further.aggravate the situation further.

Addressing the challengesAddressing the challenges

The role of government The role of government

The role of government is to put in place The role of government is to put in place the necessary infrastructure that allows for the necessary infrastructure that allows for investments from business enterprises to investments from business enterprises to thrive. It should put in place mechanisms thrive. It should put in place mechanisms for ensuring that the individual’s for ensuring that the individual’s enterprise and initiative is rewarded and enterprise and initiative is rewarded and that people who put in hard work into their that people who put in hard work into their ventures have the opportunity of reaping ventures have the opportunity of reaping the fruits of their labour.the fruits of their labour.

To effectively play its role, To effectively play its role, government must strive to go government must strive to go further than just providing physical further than just providing physical infrastructure. It must also put in infrastructure. It must also put in place effective legal and policy place effective legal and policy frameworks and the social capacity frameworks and the social capacity for development. It must ensure for development. It must ensure security and stability by mobilizing security and stability by mobilizing the citizenry and ensuring their the citizenry and ensuring their effective involvement in the effective involvement in the development process. development process.

04/18/2304/18/23 1717

This involvement must not be This involvement must not be illusory. People must feel that they illusory. People must feel that they have a real influence over the have a real influence over the production and distribution of wealth. production and distribution of wealth. This will engender trust and This will engender trust and encourage not just the consumption, encourage not just the consumption, but also the production of wealth. but also the production of wealth.

04/18/2304/18/23 1818

It is by inculcating in individuals the It is by inculcating in individuals the feeling that they have a stake in the feeling that they have a stake in the well-being of the country, that peace well-being of the country, that peace would be maintained. Employment of would be maintained. Employment of the citizens is critical in this regard.the citizens is critical in this regard.

In the past, governments in Africa In the past, governments in Africa have tended to perpetuate the have tended to perpetuate the dependency syndrome in their dependency syndrome in their citizens, where it is always assumed citizens, where it is always assumed that it is the governments’ role to that it is the governments’ role to provide virtually everything to the provide virtually everything to the citizen. This is not appropriate and citizen. This is not appropriate and citizens who rest on their laurels citizens who rest on their laurels waiting for government to provide, waiting for government to provide, must be disabused of this notion.must be disabused of this notion.

It is important to note that an enabling It is important to note that an enabling environment cannot be created by environment cannot be created by government alone. It calls for the government alone. It calls for the establishment of effective partnerships establishment of effective partnerships between the public sector, the private between the public sector, the private sector and the civil society that sector and the civil society that enhances the spirit of participatory enhances the spirit of participatory development and increases citizen development and increases citizen engagement in creating a secure and engagement in creating a secure and stable environment in which stable environment in which corporations can grow and thrive.corporations can grow and thrive.

An array of business practices, corporate An array of business practices, corporate attitudes, societal and institutional values attitudes, societal and institutional values all determine the so called competitive all determine the so called competitive advantage of societies. Proactive efforts advantage of societies. Proactive efforts must be made to inculcate the culture of must be made to inculcate the culture of transparency and accountability. There transparency and accountability. There has to be in place a philosophy which has to be in place a philosophy which regards the common good of society as regards the common good of society as the most crucial success factor. Business the most crucial success factor. Business will then begin to flourish, more wealth will then begin to flourish, more wealth will be created and will be more equitably will be created and will be more equitably distributed, and development in the distributed, and development in the broadest meaning of the word will be broadest meaning of the word will be accelerated and sustained.accelerated and sustained.

Forging effective poverty reduction Forging effective poverty reduction partnershipspartnerships

While government bears a substantial While government bears a substantial responsibility in ensuring that the responsibility in ensuring that the alleviation of poverty is implemented alleviation of poverty is implemented successfully, it is also recognized that it successfully, it is also recognized that it may require help in executing this role may require help in executing this role satisfactorily. It is for this reason that satisfactorily. It is for this reason that governments should enter into effective governments should enter into effective partnerships with other partners in partnerships with other partners in development.development.

The Role of the Private sectorThe Role of the Private sector

The private sector must be looked at as the The private sector must be looked at as the engine of economic growth in any country. It engine of economic growth in any country. It is well placed to play the role of wealth is well placed to play the role of wealth creation in the country because it is primarily creation in the country because it is primarily concerned with doing business, unlike concerned with doing business, unlike government.government.

For the private sector to play any For the private sector to play any meaningful role, it must be driven by good meaningful role, it must be driven by good corporate governance principles. It is only corporate governance principles. It is only such practices that can ensure increased such practices that can ensure increased productivity and sustainability of enterprises. productivity and sustainability of enterprises.

The role of civil societyThe role of civil society

The civil society has a duty to ensure The civil society has a duty to ensure that it demands from the government, that it demands from the government, and all public institutions, proper and all public institutions, proper management of resources vested in management of resources vested in such institutions or government. To such institutions or government. To this end, it is vital that advocacy this end, it is vital that advocacy programmes are put in place to programmes are put in place to enlighten citizens on their rights. enlighten citizens on their rights.

The role of NEPADThe role of NEPAD

The political leadership of Africa under The political leadership of Africa under the New Partnership for Africa’s the New Partnership for Africa’s Development [NEPAD] is another Development [NEPAD] is another important vehicle through which these important vehicle through which these challenges to the alleviation of poverty challenges to the alleviation of poverty can be addressed. The leaders working can be addressed. The leaders working under the NEPAD framework have in under the NEPAD framework have in principle agreed to the following as key principle agreed to the following as key priority thrusts to addressing the priority thrusts to addressing the challenges facing Africa:challenges facing Africa:

• Restoration of peace, security and Restoration of peace, security and stability with consolidation of democratic stability with consolidation of democratic gains and strengthening of democratic gains and strengthening of democratic structures and institutions;structures and institutions;

• Establishment and entrenchment of good Establishment and entrenchment of good economic and corporate governance;economic and corporate governance;

• Bridging the infrastructure gap and Bridging the infrastructure gap and creating social capacity for development;creating social capacity for development;

• Human resource development and Human resource development and capacity building;capacity building;

• Reduction of poverty and income Reduction of poverty and income inequalities through accelerated inequalities through accelerated economic growth and sustainable wealth economic growth and sustainable wealth creation;creation;

• Reconfiguration of global financial Reconfiguration of global financial architecture with emphasis on architecture with emphasis on investment promotion and re-definition investment promotion and re-definition of relationships with development of relationships with development partners focusing on debt reduction, partners focusing on debt reduction, increased aid and aid reform;increased aid and aid reform;

• Integration of the continent into the Integration of the continent into the world economy and enhanced market world economy and enhanced market access; andaccess; and

• Preservation and conservation of the Preservation and conservation of the environment.environment.

Among the key strategic thrusts of Among the key strategic thrusts of NEPAD is the improvement of economic NEPAD is the improvement of economic and corporate governance. The leaders and corporate governance. The leaders have repeatedly underscored the have repeatedly underscored the importance of good corporate importance of good corporate governance in the sustainable governance in the sustainable development of Africa. These proposed development of Africa. These proposed measures by NEPAD, if put in place, measures by NEPAD, if put in place, would make the implementation of would make the implementation of poverty eradication measures easier and poverty eradication measures easier and more effective.more effective.

The African Peer Review Mechanism is a The African Peer Review Mechanism is a tool within the NEPAD framework that is tool within the NEPAD framework that is designed to provide an independent designed to provide an independent assessment of a country’s performance assessment of a country’s performance and diversity with respect to political, and diversity with respect to political, economic and corporate governance. It economic and corporate governance. It would also validate and qualify external would also validate and qualify external assessments by bodies such as the assessments by bodies such as the World Bank and the IMF. It is an idea World Bank and the IMF. It is an idea that is long overdue.that is long overdue.

In assessing governance, it is useful to In assessing governance, it is useful to engage a set of indicators. Indicators can engage a set of indicators. Indicators can be defined as the visible manifestations be defined as the visible manifestations of the state of governance of a of the state of governance of a corporation. This would provide corporation. This would provide information as to the level of compliance information as to the level of compliance with codes and standards as well as the with codes and standards as well as the nature of the remedies that could be nature of the remedies that could be applied.applied.In terms of corporate governance, In terms of corporate governance, possible indicators include:possible indicators include:

At a country level:At a country level:

• Information, monetary and fiscal Information, monetary and fiscal transparency.transparency.

• The enforcement of law including the The enforcement of law including the efficiency of the judiciary and the police.efficiency of the judiciary and the police.

• The effectiveness of the regulatory The effectiveness of the regulatory framework of both government framework of both government [particularly banking, insurance and [particularly banking, insurance and security markets] and self regulatory security markets] and self regulatory authorities [including the stock authorities [including the stock exchange, professional and trade exchange, professional and trade associations], etc.associations], etc.

04/18/2304/18/23 3232

•Presence and effectiveness of Presence and effectiveness of anticorruption measures and anticorruption measures and measures to inculcate ethics, such measures to inculcate ethics, such as the code of ethics for holders of as the code of ethics for holders of public and the civil service and public and the civil service and the extent of enforcement of the the extent of enforcement of the same. same.

Marshalling all potential Marshalling all potential development partners to ensure development partners to ensure ownership, sustainability and ownership, sustainability and effectivenesseffectiveness Civil society, the private sector, Civil society, the private sector,

parliaments, trade unions, and external parliaments, trade unions, and external agencies and the civil society should all agencies and the civil society should all participate in designing and implementing participate in designing and implementing strategies for reducing poverty. This strategies for reducing poverty. This diversity of actors demands better diversity of actors demands better communication, reinforced by strong communication, reinforced by strong cooperation, and a good understanding of cooperation, and a good understanding of the relative strengths and comparative the relative strengths and comparative advantages of each of them. advantages of each of them.

Development agencies can play an Development agencies can play an important role in strengthening the important role in strengthening the capacity of civil society to engage with capacity of civil society to engage with government, and in supporting government, and in supporting consultation mechanisms. Due consultation mechanisms. Due consideration should be given to the consideration should be given to the scope for non-governmental scope for non-governmental organizations, chambers of commerce organizations, chambers of commerce and the enterprise sector to spearhead and the enterprise sector to spearhead effective and innovative initiatives for effective and innovative initiatives for reducing poverty.reducing poverty.

Allocating resources for effective Allocating resources for effective poverty reductionpoverty reduction

Given the limited volumes of development Given the limited volumes of development assistance and the importance of assistance and the importance of reducing poverty, it is vital that reducing poverty, it is vital that development cooperation resources are development cooperation resources are used as effectively as possible. Country used as effectively as possible. Country allocation criteria need to take into allocation criteria need to take into account both the number and proportion account both the number and proportion of very poor people and include an of very poor people and include an assessment of the scope for the assessment of the scope for the effectiveness of aid in a given partner effectiveness of aid in a given partner country. Maximizing the impact of country. Maximizing the impact of development cooperation on reducing development cooperation on reducing poverty implies:poverty implies:

• Concentration on the poorest Concentration on the poorest countries, although some targeted countries, although some targeted funding should also be provided to funding should also be provided to other developing countries with other developing countries with widespread poverty.widespread poverty.

• More emphasis on medium and larger-More emphasis on medium and larger-sized countries, where the vast sized countries, where the vast majority of the very poor are found, majority of the very poor are found, although aid per capita would remain although aid per capita would remain significantly higher in smaller significantly higher in smaller countries.countries.

The place of corporate governanceThe place of corporate governance

Corporate governance has seven pillars Corporate governance has seven pillars namely, discipline, accountability, namely, discipline, accountability, transparency, responsibility, transparency, responsibility, independence, social responsibility and independence, social responsibility and fairness. It is concerned with holding the fairness. It is concerned with holding the balance between economic and social balance between economic and social goals and between individual and goals and between individual and communal goals to align as nearly as communal goals to align as nearly as possible the interests of individuals, possible the interests of individuals, corporations and society. corporations and society.

04/18/2304/18/23 3838

It extols practices which can be put It extols practices which can be put into practice in promoting the proper into practice in promoting the proper governance, not only of business governance, not only of business enterprises and institutions enterprises and institutions connected to them, but also connected to them, but also governments. Such principles include governments. Such principles include transparency, accountability and transparency, accountability and probity.probity.

In applying sound corporate governance In applying sound corporate governance practices, the various stakeholders must practices, the various stakeholders must first agree on what constitutes the national first agree on what constitutes the national standards of practices which they desire to standards of practices which they desire to put in place. Standard setting is vital and put in place. Standard setting is vital and would entail taking the standards that have would entail taking the standards that have already been agreed on internationally and already been agreed on internationally and then adopting them to the African situation. then adopting them to the African situation. Institutional capacity building must then Institutional capacity building must then take place. This would involve activities like take place. This would involve activities like putting in place institutions like centres that putting in place institutions like centres that promote Corporate Governance initiatives promote Corporate Governance initiatives and other similar institutions that foster the and other similar institutions that foster the growth of corporate governance in the growth of corporate governance in the country. country.

This would then be followed by national This would then be followed by national capacity building and this entails the capacity building and this entails the training of directors of various training of directors of various institutions as well as the training of institutions as well as the training of trainers, to ensure that the corporate trainers, to ensure that the corporate governance practices in place, start governance practices in place, start

bearing fruit.bearing fruit.

Good corporate governance Good corporate governance prescribes desirable practices which prescribes desirable practices which if implemented would ensure a if implemented would ensure a marked improvement in the fortunes marked improvement in the fortunes of the vast majority of countries in of the vast majority of countries in Africa, and indeed the developing Africa, and indeed the developing world as a whole. These measures world as a whole. These measures include:include:

1) 1) Training and EducationTraining and Education

Training and education can be used to Training and education can be used to build a national capacity to implement build a national capacity to implement and apply good Corporate Governance and apply good Corporate Governance practices by facilitating increased range practices by facilitating increased range of training opportunities for directors of training opportunities for directors and potential directors, and by and potential directors, and by exposing and sensitizing as many exposing and sensitizing as many people as possible to good corporate people as possible to good corporate governance principles through;governance principles through;

• Development, continuous review, Development, continuous review, improvement and update of training improvement and update of training materials and case studies.materials and case studies.

• Training of Trainers courses.Training of Trainers courses.• Initial training courses for a critical core Initial training courses for a critical core

of directors in publicly quoted companies of directors in publicly quoted companies and major private companies and leading and major private companies and leading private and public corporations.private and public corporations.

• Stakeholders’ workshops to promote Stakeholders’ workshops to promote understanding of good corporate understanding of good corporate citizenship and social responsibility.citizenship and social responsibility.

• Consultative meetings on promoting Consultative meetings on promoting partnerships for sustainable wealth partnerships for sustainable wealth creation and eradicating corruption and creation and eradicating corruption and bribery in business.bribery in business.

• Establishment of a national register of Establishment of a national register of qualified and competent directors suitable qualified and competent directors suitable for appointment as non-executive directors, for appointment as non-executive directors, or similar corporate appointments.or similar corporate appointments.

• Consultations with professional and Consultations with professional and educational institutions on development of educational institutions on development of education curriculum in corporate education curriculum in corporate governance.governance.

• Development of educational curricula and Development of educational curricula and materials for postgraduate programmes in materials for postgraduate programmes in corporate governance.corporate governance.

• Support and collaboration with institutions Support and collaboration with institutions of higher learning for the introduction of of higher learning for the introduction of post graduate studies in corporate post graduate studies in corporate governance.governance.

2) 2) Research and DevelopmentResearch and Development

This would contribute to the continued This would contribute to the continued improvement and refinement of the improvement and refinement of the principles of good corporate principles of good corporate governance by studying, documenting governance by studying, documenting and understanding how current and understanding how current systems operate, the problems to good systems operate, the problems to good corporate governance and the corporate governance and the potential for improvement, including:potential for improvement, including:

a) Studies and research on sector a) Studies and research on sector specific governance practices and specific governance practices and procedures e.g. in:procedures e.g. in:– The not-for-profit sector.The not-for-profit sector.– The cooperative sector.The cooperative sector.– Local authorities.Local authorities.– Banking and finance sector.Banking and finance sector.

b) Studies and research on the impact of b) Studies and research on the impact of governance practices e.g:governance practices e.g:

• Public governance and its impact on Public governance and its impact on the business operating environment.the business operating environment.

• Knowledge management and its Knowledge management and its impact on the creativity, impact on the creativity, innovativeness and competitiveness of innovativeness and competitiveness of business enterprises and the national business enterprises and the national economy.economy.

• Role of governance in mobilizing Role of governance in mobilizing resources for sustainable development.resources for sustainable development.

• Impact of globalization and trade Impact of globalization and trade liberalization on corporate liberalization on corporate performance and governance.performance and governance.

• Challenges of implementing self-Challenges of implementing self-regulatory governance procedures.regulatory governance procedures.

• Impact of corruption and bribery on Impact of corruption and bribery on corporate performance and corporate performance and governance.governance.

c) Formulation and development of c) Formulation and development of guidelines e.g.:guidelines e.g.:

• Role, duties and obligations of Role, duties and obligations of executive and non-executive executive and non-executive directors.directors.

• Good corporate citizenship and Good corporate citizenship and corporate social responsibility.corporate social responsibility.

• Ethics in corporate governance.Ethics in corporate governance.

04/18/2304/18/23 5050

• Information disclosure, accountability Information disclosure, accountability and transparency.and transparency.

• Mechanisms for promoting effective Mechanisms for promoting effective partnerships between the public, partnerships between the public, privates and civil sectors for privates and civil sectors for sustainable wealth creation.sustainable wealth creation.

• Sustainable methods for promoting, Sustainable methods for promoting, rating and policing of good corporate rating and policing of good corporate governance.governance.

3) 3) Advocacy and CommunicationsAdvocacy and Communications

Advocacy plays a very critical role in Advocacy plays a very critical role in sensitizing, motivating and influencing sensitizing, motivating and influencing policy-makers, corporate directors and policy-makers, corporate directors and community leaders to embrace and community leaders to embrace and promote good corporate governance promote good corporate governance principles and to motivate the principles and to motivate the participation and involvement of the participation and involvement of the community in actively demanding good community in actively demanding good economic governance for sustainable economic governance for sustainable wealth creation, increased employment wealth creation, increased employment opportunities, etc through leadership opportunities, etc through leadership for efficiency and probity:for efficiency and probity:

04/18/2304/18/23 5252

leadership with responsibility and leadership with responsibility and leadership that is transparent and leadership that is transparent and accountable in all fields of human accountable in all fields of human endeavour and in developing a endeavour and in developing a national framework of values, ethics national framework of values, ethics and ethos for good corporate and ethos for good corporate governance and whose activities are governance and whose activities are as follows:as follows:

a) Advocacy:a) Advocacy:

– Workshops for policymakers, Workshops for policymakers, regulators and supervisors.regulators and supervisors.

– Seminars on national ethics and Seminars on national ethics and values for good and sustainable values for good and sustainable economic governance.economic governance.

04/18/2304/18/23 5454

– Workshops and seminars on Workshops and seminars on partnerships for sustainable wealth partnerships for sustainable wealth creation and employment generation.creation and employment generation.

– Discussions and debate on Discussions and debate on governance practices to enhance governance practices to enhance democratization of institutions for democratization of institutions for sustainable wealth creation.sustainable wealth creation.

– Workshops on good corporate Workshops on good corporate citizenship and social responsibility.citizenship and social responsibility.

b)b) Information, Documentation Information, Documentation and Communicationsand Communications

This involves:This involves:

– Establishment of a resource centre and Establishment of a resource centre and a databank on corporate governance.a databank on corporate governance.

– Publication and communication of Publication and communication of research results and studies showing research results and studies showing the impact that governance practices the impact that governance practices and corruption have on national and corruption have on national economic performance, the quality of economic performance, the quality of life of the community and on life of the community and on employment opportunities.employment opportunities.

04/18/2304/18/23 5656

– Periodic and regular publication of Periodic and regular publication of journals and magazines to facilitate journals and magazines to facilitate dissemination of information, exchange dissemination of information, exchange of ideas and experiences and to of ideas and experiences and to promote policy dialogue on good promote policy dialogue on good corporate governance.corporate governance.

– Development and maintenance of a Development and maintenance of a dynamic website on corporate dynamic website on corporate governance.governance.

4)4) Monitoring and EvaluationMonitoring and Evaluation

To monitor and evaluate the extent to To monitor and evaluate the extent to which public institutions and private which public institutions and private business enterprises in a country business enterprises in a country embrace, apply and implement good embrace, apply and implement good corporate governance principles and corporate governance principles and practices and to assess the impact practices and to assess the impact that this has on improving national that this has on improving national efficiency and competitiveness in efficiency and competitiveness in enhanced wealth and employment enhanced wealth and employment creation. Activities involve:creation. Activities involve:

• Development of a criterion for the Development of a criterion for the monitoring, evaluation and certification monitoring, evaluation and certification of good corporate governance practices.of good corporate governance practices.

• Putting in place a mechanism for Putting in place a mechanism for evaluating and assessing the extent to evaluating and assessing the extent to which companies in Kenya embrace which companies in Kenya embrace good corporate governance principles.good corporate governance principles.

• Initiate and launch a national Initiate and launch a national recognition and reward scheme for recognition and reward scheme for companies that excel in good corporate companies that excel in good corporate governance practices.governance practices.

CONCLUSIONCONCLUSION

Africa is not an island. We are now in Africa is not an island. We are now in a global market and in order to a global market and in order to prosper, Africa must be competitive. prosper, Africa must be competitive. With proper institutional and policy With proper institutional and policy frameworks in place, and with strict frameworks in place, and with strict implementation of those policies, implementation of those policies, there is no reason why we cannot turn there is no reason why we cannot turn a continent which is the most a continent which is the most endowed with natural resources, into endowed with natural resources, into the richest continent. the richest continent.

04/18/2304/18/23 6060

It is instructive therefore that legal It is instructive therefore that legal and policy frameworks that promote and policy frameworks that promote or provide a conducive environment or provide a conducive environment for the creation of wealth are for the creation of wealth are formulated and put in place to formulated and put in place to facilitate economic growth. facilitate economic growth.

Vices like corruption and other Vices like corruption and other undesirable practices like ethnicity undesirable practices like ethnicity which have the potential of derailing which have the potential of derailing poverty eradication schemes already poverty eradication schemes already in place, must be curbed. More in place, must be curbed. More importantly, the fight against poverty importantly, the fight against poverty must be a concerted three-pronged must be a concerted three-pronged assault between the public sector, the assault between the public sector, the private sector and the civil society, if private sector and the civil society, if any meaningful gains are to be any meaningful gains are to be realized. realized.

04/18/2304/18/23 6262

In all these ventures, corporate In all these ventures, corporate governance plays an exceedingly governance plays an exceedingly important role in providing the frame important role in providing the frame work and guidelines of practices that work and guidelines of practices that ensure success in the running and ensure success in the running and management of enterprises at management of enterprises at various levels. various levels.