Post on 11-Jul-2020
Sharing the Experience of the African Corporate Governance
Network “UNLOCKING AFRICAN POTENTIAL”
Lynette Chen
27 March 2015
• In January 2013, with the support of the NBF, the Mauritius Institute of Directors (MIOD) together with the Institute of Directors Southern Africa (IODSA) jointly spearheaded the setting up of the ACGN
• On 16 October 2013, the ACGN was officially launched in Mauritius during which the ACGN Constitution was signed by all Founding Members and the NBF, binding them to work together to promote good corporate governance in Africa
• ACGN will provide policy makers and market participants with an important forum to exchange experiences and best practices aimed at addressing ongoing corporate governance challenges in Africa
Introduction to the ACGN
Overview of the ACGN
Affiliate Members: NEPAD Business Foundation; FITC Nigeria; Ethics Institute of South Africa; ACCA; ICSA Uganda; Society for Corporate Governance Nigeria
Vision: Africa, a continent committed to effective corporate governance and ethical leadership
Collaborators: Webber-Wentzel; IFC; Ernst & Young; Standard Bank; World Bank; ESSEC Business School
Targeted Members: Senegal, Namibia, Botswana, in the short-term
` Zambia
Nigeria
Tanzania
Mauritius
Kenya
Mozambique
Morocco
South Africa
Malawi
Zimbabwe
Uganda
Mission: To develop the institutional capacity of ACGN members for enhancing effective corporate governance practices towards building better private and public sector organisations and corporate citizens in Africa.
Egypt
Tunisia
Ethiopia
Ghana Ivory Coast
Algeria
Objectives of the ACGN
ACGN Sub-Committees were established to address the objectives set through focus areas:
Advocacy and Research
Objective: Best practice research for Africa to advocate good governance across the continent
Achievement: Stakeholder engagement and mapping; ACGN website developed and launched
Membership and Capacity Building
Objective: Improved corporate governance at both an institutional and individual level through capacity building
Achievement: Expanding network of members; Project identified to train-the-trainer
Collaboration and Funding
Objective: Stronger network of implementing partners with adequate support
Achievement: Expanding network of affiliate members and collaborators. Sharing of tools and best practices
NBF
Structure of the ACGN
• Face-to-face meetings of ACGN members and affiliates from inception (January 2013) to date hosted by South Africa, Zimbabwe, Mauritius, Kenya, Tanzania and Zambia
• Core group – now representing 17 African countries Institutes of Directors and Corporate Governance
• Governance Framework – Mission, Vision, Values, Objectives, Constitution and Operating Procedures
• Sub-Committees and clear focus areas
• Clear vision, development strategy and direction
• Partnerships
• Sponsorship
• Website www.afcgn.org
What has the ACGN achieved so far?
• Stakeholder mapping and engagement with key stakeholders
• Published articles including that in Ethical Boardroom
• 2 day Capacity Building workshop for all ACGN members and affiliates held in Dar es Salaam in July 2014, funded by IFC and hosted by IOD Tanzania
• 3 day Training of Trainers workshop for all ACGN members and affiliates being held in Johannesburg November 2014, funded by IFC and hosted by IOD Southern Africa
• Clear reporting targets and KPIs set for all participants
What has the ACGN achieved so far? (Cont’d)
• Create a team of African CG Trainers
• Look at creating a pool of Independent Directors
• Work on a common project and topic chosen was researching the issue of ‘facilitation fees’ in Africa and its impact on investment and economic and commercial activities
• Research report on the state and status of corporate governance in ACGN member countries in collaboration with EY (in process of finalisation)
What is the ACGN planning in the short-term?
• Corruption
• Regulatory issues
• Inactive shareholders
• State owned enterprises
• Board weakness
• One-size fits all governance codes
• Political instability
• Lack of institutional capacity
Challenges facing corporate governance reform in Africa
We believe the best to way to address these issues is to have:
• Sustainable Institutes of Directors/Corporate Governance in each country with a strong membership base which will establish their legitimacy
• Training and education of directors and senior managers
• Focused and relevant research easily accessible
• Lobbying for improved corporate governance
Challenges facing corporate governance reform in Africa
Proposed Intervention Model
Steering Committee
Africa Economic and Corporate Governance Desk
Multi-stakeholder Platform
Government Governance
Corporate Governance (ACGN)
Research and Thought Leadership (EY and ACCA)
African Case Studies (University)
Central Repository of Information (ACGN Website)
- Cross border governance issues
- Create conducive environment for investors
- Engagement with public sector on regulatory reform
- Projects
- Representing over 16 000 directors and senior executives in Africa
- Representing 15 African countries
- Capacity building of IOD’s - Create cadre of African CG
trainers
- SOE’s - Focus on public
sector - Capacity building
• Continue to target bona fide similar organisations in other
African countries as members
• Continue to target and engage with collaborators and other key
stakeholders:
• Financial institutions;
• Legal, Audit and Accounting firms;
• Other corporates with a footprint throughout the continent;
• Donor agencies, other NGO’s and DFI’s;
• Research institutions;
• Respective country-specific government institutions and agencies;
• Country-specific and regional regulators, commissions, exchanges,
chambers of commerce; and
• NEPAD Agency and its related APRM programme.
Target Audience
• Funding for the secretariat services currently provided pro bono by NBF as well as the programme management activities required to coordinate and manage identified projects to ensure the targeted outcome is achieved
• Funding for such projects as identified in the key focus areas
• Sponsorship for the ACGN meetings which will be hosted on a rotational basis by founding members
• Sponsorship for Institutes such as Malawi and Senegal, with limited resources
Funding and Sponsorship
ACGN ~ together representing the voice of over 16,000
directors and senior executives in Africa