WASHINGTON, October 16, 2013 – IFC, a member of the World Bank Group, today announced the launch of the African Corporate Governance Network that will encourage best practices in corporate governance among African institutions, and contribute to capacity building in corporate governance.
The ACGN launch taking place in Mauritius today is sponsored by the IFC Africa Corporate Governance Program based in Nigeria.
The ACGN was formed to develop the institutional capacity of members, enhance effective corporate governance practices and build better governed and more accountable private and public sector organizations in Africa.
Countries currently involved in the network include: Kenya, Malawi, Mauritius, Mozambique Nigeria, South Africa, Tanzania, Zambia and Zimbabwe.
Member countries will be bound by the ACGN constitution, which will be signed during the launch.
Jane Valls, CEO of the Mauritius Institute of Directors said, “The African Corporate Governance Network is an important initiative for Africa. I am especially pleased that this event should be taking place in Mauritius on the eve of our international conference. I am confident that the African Corporate Governance Network will soon find its place as one of the major organizations promoting best practices in Africa”.
Chinyere Almona, Head of IFC Africa Corporate Governance Program said, “Strong international practices in corporate governance are an important factor in attracting investment. Through the African Corporate Governance Network, IFC encourages the adoption of good corporate governance practices across Africa to increase investor confidence, boost private sector development, and create sustainable businesses that will provide employment and reduce poverty.”
A recent report by the Organisation for Economic Cooperation and Development, found that a robust framework of corporate governance rules and regulations provides investors with confidence, and entrepreneurs with the incentives to develop their businesses. The OECD report emphasizes that developing and emerging markets, in particular, benefit from strong governance as companies gain better access to external capital required to realise their potential for economic growth.
Organisation for Economic Co-operation and Development (OECD), Corporate governance, value creation and growth: The bridge between finance and enterprise, 2012; available at http://www.oecd.org/corporate/corporateaffairs/corporategovernanceprinciples/50242938.pdf
The ACGN’s vision is to make Africa a continent committed to effective corporate governance and ethical leadership.
Acknowledging the contribution of several partners, Valls said, “We are indebted to IFC for their overall support, and to Standard Bank and ACCA for their support of our initial meetings. We thank the representatives of NEPAD Business Foundation for providing the Secretariat to the ACGN.”
