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