AFRICA’S economic growth will not be sustainable if the continent does not improve its reputation for corporate governance, corporate governance experts have said.
Edward Siwela, executive director of the Institute of Directors Zimbabwe (IoDZ), told delegates attending the second meeting of the African Governance Network (ACGN), in Harare this week that Africa’s growth will be realised only if the continent develops strong companies able to compete successfully in their home and overseas markets.
The first meeting was held in Johannesburg, South Africa, in January this year.
The two-day Harare meeting brought together delegates from nine African countries, among them Kenya, Malawi, Mauritius, Mozambique, South Africa, Tanzania, Uganda and Zimbabwe.
“We know from the experience of the developed world that governance is essential to sustained corporate success,” said Siwela.
NEPAD Business Foundation chief operating officer Derek Browne, who was one of the participants at the meeting, agreed, saying good corporate governance is critical in attracting foreign direct investment inflows.
The meeting also discussed preparations for a major conference on corporate governance scheduled for October this year in Mauritius.
Renewed global hunger for Africa’s resources and, increasingly, its rapidly growing vibrant home markets, according to business leaders, are revitalising Africa’s economic growth.
According to the Organisation for Economic Co-operation and Development OECD report entitled Corporate governance, value creation and growth: The bridge between finance and enterprise, 2012, the continent must have strong corporate governance in order to access external capital necessary for the realisation of their full potential for economic growth.