Accra, Jan. 10, GNA – The African Corporate Governance Network (ACGN) has called on governments in Africa to enhance the corporate governance ecosystem by supporting the establishment of governance regulatory frameworks and supervisory institutions.
The ACGN said there was a need for the establishment of a sound legislative framework to ensure adequate enforcement of laws through effective monitoring mechanisms.
The promotion and implementation of good corporate governance frameworks, the ACGN said, was instrumental in achieving investor confidence for the development of the continent.
Mr Rockson Kwesi Dogbegah, Board Chairman, African Corporate Governance Network, who made the remarks remotely during a stakeholder workshop and formation of the Institute of Directors – Liberia, said there was urgent need for governments to create more attractive and conducive environments for investments and businesses to thrive.
The hybrid stakeholders conference, held in-person in Monrovia, Liberia and via webinar, was organised by the ACGN in collaboration with Africabio’s Executive Round Table and Women on Boards Network, Liberia (WOBNL).
The objective of establishing an Institute of Directors in Liberia includes among others, the development of national capacity in good corporate governance, professional directors’ training in corporate governance, championing advocacy, promoting ethical behaviours and creating the opportunity for networking locally and internationally.
Mr Dogbegah said Africa faced the immediate challenge of how to reverse the persistent and increasing poverty and unemployment levels, enhance productivity, improve quality infrastructure and favourable environments for investments and thriving businesses.
He noted that there was a global consensus that the implementation of the highest standard of corporate governance was crucial and critical to economic and sustainable development and social transformation of the continent.
Accordingly, he said, as part of its strategic interventions, the ACGN was embarking on the activities in collaboration with stakeholders to enhance good corporate governance outcomes in Africa, including the establishment of corporate governance institutions throughout the continent and the standardisation of corporate governance training across Africa.
Mr Dogbegah, also the President of the Institute of Directors Ghana (IoD-Ghana), observed that the introduction and implementation of African Continental Free Trade Area (AfCFTA) presented opportunities and challenges, which could generate wealth and employment for the continent’s youthful population.
Also, he said, the responsibility of building thriving and successful businesses rested with boards and directors who were required to build an ecosystem of diverse leaders while solving the continent’s real problems through robust and sustainable corporate governance frameworks.
He asserted that the African continent continued to experience corporate governance breaches, which resulted in the inability to create wealth sustainably.
The ACGN Board Chairman said African countries were at various levels of maturity regarding the adoption and implementation of corporate governance codes and principles.
Therefore, he said: “Good governance is neither a stagnant board goal that countries should strive to attain nor a one-sided framework that can simply be copied and pasted, but to continuously adopt changing environments and implement measures that promote good governance practices.”
Mr Jolue Aloysius Tarlue, Jr., Executive Governor, Central Bank of Liberia, who spoke at the event in Monrovia, Liberia, said greater accountability, transparency and responsibilities of directors and senior management were vital tools in corporate governance practices needed for the growth of African businesses.
He said the failures of corporate bodies over the years, had necessitated the institution of best corporate governance practices, adding that it was paramount to apply those tenets of corporate governance to safeguard economies of unscrupulous individual managers and institutions whose actions had caused significant financial and economic losses in most countries.
The Liberian Central Bank Governor said sound corporate governance, culture and behaviour was indispensable and an added inherent necessity for strong private and public sector institutions and by extension strong and vibrant economies.
GNA