ISSUES OF CORPORATE GOVERNANCE IN AFRICA WITH EMPHASIS ON KENYA

1

• ISSUES OF CORPORATE GOVERNANCE IN AFRICA WITH
  EMPHASIS ON KENYA
• Presented By Karugor Gatamah
• Executive Director Private Sector Corporate
  Governance Trust

2
1. CORPORATE GOVERNANCE

• 1.1 INTRODUCTION
• What is Corporate Governance?
• The system by which corporations are
  directed ,controlled and held to account
• Hence it refers to the manner in, and the
  system by, which power over, and the power of, a
  corporation is exercised in the stewardship of
  its total portfolio of assets and resources with
  the primary objective of increasing and
  sustaining shareholder value and while satisfying
  the interests, or taking account of the needs, of
  other stakeholders in the context of the mission
  and vision of that corporation.

3
What does corporate governance embrace?

• In the broader context corporate governance
  embraces
• Issues of public policy, the overriding national
  values and ethics and the national priorities and
  consensus under which the Licence to Operate is
  granted to corporations
• The system by which the legitimacy, relevance and
  compliance of the corporation is monitored,
  supervised and regulated - the national laws and
  statutes the conventions, standards, practices
  and procedures that regulatory authorities, the
  market, trade and business associations,
  professional bodies and the society promulgate or
  express to guide the conduct of business
• The self regulatory mechanisms by which the
  corporation governs and conducts itself to ensure
  that it remains legitimate, viable and
  competitive.

4
Why the interest in corporate governance?

• i)From the perspective of society
• It has become increasingly evident that our
  continued prosperity as nations, as communities,
  and even as dignified individuals, is closely
  linked with our ability to create, strengthen and
  maintain profitable, competitive and sustainable
  business enterprises
• The viable, competitive and sustainable modern
  business enterprise requires an organization of
  basic resources (capital, material and human)
  concentrated in large aggregations giving the men
  and women entrusted to run those enterprises
  power over people, resources etc such that their
  decisions have great impact upon the society, the
  very lives of entire communities and can shape
  the future of nations .

5
i) From the Perspective of society

• Old structures, institutions, behavioral patterns
  and policies are ill adapted to deal with the
  challenges posed by globalization, technological
  change and economic liberalization. There is an
  urgent need for change in government and private
  sector attitudes and strategies
• Many of our nations have accepted that the
  private sector is the wealth creating and wealth
  producing organ of society, i.e. that it is the
  engine of growth. Hence it has become relevant
  in light of increasing poverty, unemployment and
  global misery to ask the question whether that
  engine of growth is doing the job it is expected
  to do.

6
i) From the Perspective of society

• Hence from the perspective of society the
  interest in corporate governance stems from the
  need to re-assure ourselves
• That corporate business enterprises can indeed be
  the viable wealth creating and wealth producing
  organ of society that creates employment,
  utilizes our resources sustainably, effectively
  and efficiently for the greatest human good
• That corporations and those who run them are held
  accountable, responsible and responsive to
  society, in the exercise of the power granted
  to them by the Licence to operate extended to
  the corporate legal person

7
i) From the Perspective of society

• That the corporation the soulless self does
  not run amok, is held in check by the human
  agents entrusted to run it and that those agents
  run it for the benefit of mankind with integrity,
  accountably and transparently
• That the corporate enterprises can competitively
  attract investable resources, anticipate and
  adapt to global competition and remain relevant
  and legitimate
• That corporation is a responsible corporate
  citizen.
• That corporations and those entrusted to run them
  comply with the ever evolving legal framework and
  concepts of a just society.

8
ii) From the shareholder/ investor perspective

• The shareholder or investor in the corporate
  enterprise is concerned to see good corporate
  governance as would ensure
• Realistic corporate democracy facilitating
  popular participation and protection of minority
  through regular and transparent reporting and
  discussion
• Protection and recognition of shareholder rights,
  fairness and equitable treatment of same class of
  investors
• Corporate leadership for efficiency and probity,
  that is responsible and responsive and that is
  accountable and transparent

9
ii) From the shareholder/ investor perspective

• Enhanced corporate profitability, increased
  shareholder value underpinned by corporate
  competitiveness and sustainability
• Increased opportunities for investment.
• Effective monitoring of the corporate power
  entrusted to directors through transparent
  disclosure, accountability for stewardship of
  entrusted resources and effective monitoring of
  corporate governance.

10
iii) From the perspective of the Individual
director and the Board

• The role of a director is increasingly becoming
  more professional and much more demanding with
  even tougher legal, statutory, contractual and
  common Law duties and liabilities, yet there is
  no legal guidance on how to fulfill those duties
  or avoid the liabilities.
• This suggests that directors now need to more
  clearly understand their roles, duties and
  responsibilities and the liabilities attaching
  thereto and particularly given the apparent
  influence that developments in international law
  and corporate governance have on municipal law
  and the tendency towards convergence on uniform
  global principles of corporate governance.

11
iii) From the perspective of the Individual
director and the Board

• The role of a director is increasingly becoming
  more professional and much more demanding with
  even tougher legal, statutory, contractual and
  common Law duties and liabilities, yet there is
  no legal guidance on how to fulfill those duties
  or avoid the liabilities.
• This suggests that directors now need to more
  clearly understand their roles, duties and
  responsibilities and the liabilities attaching
  thereto and particularly given the apparent
  influence that developments in international law
  and corporate governance have on municipal law
  and the tendency towards convergence on uniform
  global principles of corporate governance.

12
iii) From the perspective of the Individual
director and the Board

• Given technological developments,
  globalization and economic liberalization, the
  tendency by professionals to disclaim liability
  and the decision in the American case Federal
  Insurance Corporation vs Bierman 2F3D 1424 (1993)
  that
• Directors are charged with keeping abreast of
  the companys business and exercising
  reasonable supervision and control over the
  activities of the company. A director may
  not rely on the judgment of others, especially
  .. when an investment poses an obvious risk
• It is suggested that directors are now required
  to have an adequate knowledge of the business
  they direct, and to continuously develop
  themselves and their knowledge in that business
  and in the field of corporate governance.

13
What does good corporate governance aim at?

• The increased profitability and efficiency of
  business enterprises and their enhanced ability
  to create wealth for shareholders, increased
  employment opportunities with better terms for
  workers, and increased benefits to stakeholders
• Sustainability, and enhanced competitiveness of
  business enterprise in the liberalized borderless
  global market
• The credibility of business enterprise and its
  increased capacity to attract inward investments
  in an internationally competitive environment

14
What does good corporate governance aim at?

• The enhanced legitimacy, responsibility and
  responsiveness of the business enterprise within
  the economy and improved relationships with its
  various stakeholders comprising shareholders,
  managers, employees, customers, suppliers, host
  communities, providers of finance and the
  environment, enhancing its market standing, image
  and reputation and
• The transparency, accountability and probity of
  business enterprise making it acceptable as the
  caring, responsible, honest and legitimate wealth
  creating organ of society.

15
Why the primary focus on company leadership and
directors?

• Mobilising the army requires ability on the part
  of leadership. When the leadership is able, then
  there will be good discipline. The Art of
  War Sun Tzu as translated by Thomas Cleary.
• When fish rots, it rots from the head Chinese
  proverb.
• -If the lead sheep limps, the flock will not get
  to the pasture and
• - The neck has never gone above the head
  Sayings of the Agikuyu people of Kenya.

16
Why the primary focus on company leadership and
directors?

• Hence corporate governance primarily addresses
  the leadership of business enterprises and seeks
  to promote
• Leadership for efficiency and effectiveness
• ie leadership for improved strategic and
  operational guidance of business enterprises to
  ensure efficient use of entrusted resources and
  competitiveness in the liberalized global market
• Leadership for probity
• ie leadership that is honest, trustworthy and
  with integrity such that it commands respect and
  credibility and hence can be relied upon to use
  entrusted resources efficiently and effectively
  by investors, the society and to produce reliable
  products by the consuming public

17
Why the primary focus on company leadership and
directors?

• Leadership with responsibility
• ie leadership that takes its responsibility to
  the various stakeholders seriously and which is
  responsive to the legitimate needs of the
  community, stakeholders and the nation
• Leadership that is transparent and accountable
• ie leadership that has nothing to hide, and
  which accounts transparently for the use of
  entrusted power, resources and the licence to
  operate.
• Leadership with focused intelligence to acquire
  and apply knowledge and know-how to create and
  produce sustainable wealth

18
CHALLENGES TO PROMOTION OF CORPORATE GOVERNANCE
IN AFRICA

• Vast developmental needs exist in Africa which
  require community mobilization, citizen
  engagement and participation and the accelerated
  creation of wealth within an environment where
  all stakeholders are convinced of fairness,
  accountability, transparency and responsibility
• For the Private Sector to play its role
  effectively as the engine of growth and
  development, there is need to ensure that-
• Those who lead and run the private sector are men
  and women of vision, integrity and accountability
  and can be relied upon to exercise leadership,
  enterprise and astute judgment in directing
  business enterprises
• That the business enterprises contribute to the
  well being of society, behave responsibly to and
  are responsive to the needs of society

19
CHALLENGES TO PROMOTION OF CORPORATE GOVERNANCE
IN AFRICA

• The fact that Africa is characterized by very few
  quoted public companies, a limited number of
  public companies, many family or small private
  companies, a multiplicity of state owned
  enterprises, a varied number of co-operatives and
  co-operative societies and other community based
  business organizations not to mention the many
  informal sector business arrangements. Suggesting
  that principles of corporate governance as and
  when introduced should ensure that they do not
  disadvantage or indeed create trade barriers for
  the quoted companies .
• The need to ensure that standards promoted and
  implemented are seen as African standards,
  developed, formulated and ratified by Africa and
  not imposed upon it.

20
CHALLENGES TO PROMOTION OF CORPORATE GOVERNANCE
IN AFRICA

• Hence the need to
• Develop systems for monitoring and evaluating
  compliance with good corporate governance
  practices and strengthening the incentives for
  good corporate governance. This demands that at
  least in the short term, the society be prepared
  to recognize, acknowledge and reward good
  corporate governance.
• Develop and improve institutions that have the
  capacity to implement and enforce best practices
  including regulators particularly in the
  financial sector and self-regulatory
  organizations.
• Develop and adopt supervisory arrangements that
  effectively place risk management responsibility
  with the Board of Directors instead of passing
  the same to the supervisory agencies.
• Establish well regulated, well functioning and
  competitive capital and financial markets which
  provide a disciplinary mechanism.
• Update and strengthen the legal, judicial and tax
  systems

21
CHALLENGES TO PROMOTION OF CORPORATE GOVERNANCE
IN AFRICA

• Build capacity to upgrade the capabilities of the
  existing leaders of business through advocacy,
  awareness raising and training
• Prepare a cadre of potential business leaders by
  introducing the subject of corporate governance
  into education programmes at all levels.
• Promote greater public and community involvement
  in promoting, demanding and enforcing good
  corporate governance
• Promote inclusive partnerships for sustainable
  wealth creation, that involve the public and
  private sectors and civil society
• Promote community understanding and acceptance of
  the viable business enterprise the organ of
  society that creates and produces wealth,
  generates employment and hence contributes to the
  alleviation of poverty.

22
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• The Private Sector Corporate Governance Trust,
  an independent all inclusive, not-for-profit
  public Trust was established in March 1999, and
  mandated to 
• Formulate and put in place principles and a
  sample code of best practice for corporate
  governance in Kenya, East Africa and Africa,
  compatible with international standards but
  taking into consideration country specific
  circumstances
• Develop a sustainable institutional mechanism for
  the implementation of those principles of good
  corporate governance and 
• Build the national capacity to implement and
  apply those principles so as to improve the
  national competitiveness for wealth creation and
  production and improve the quality of life of
  Kenyans in particular and of Africans generally.
• The Trust is affiliated to the Commonwealth
  Association for Corporate Governance and acts as
  the Interim Secretariat to the Pan African
  Consultative Forum for Corporate Governance.

23
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Reason for Being
• The Private Sector Corporate Governance
  Trust was established to improve the quality of
  life in Kenya, East Africa and Africa generally
  by fostering the highest standards of Corporate
  Governance that aim at
• Improving the strategic leadership and direction
  of business enterprises to enhance their
  profitability, efficiency and competitiveness in
  the global market
• Promoting the stability, sustainability,
  credibility and attractiveness of the corporate
  sector in Kenya , East Africa and Africa as a
  priority destination of both foreign, direct and
  local investments and hence produce and create
  wealth and provide employment opportunities
• Ensuring the highest standards of corporate
  responsibility, citizenship and business ethics
  in an effort to strengthen mutual social
  responsibility, enhance the spirit of
  participatory development and create partnerships
  for progress and increase citizen engagement in
  establishing a secure and stable environment in
  which business enterprises can grow and thrive.  
  

24
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• The Guiding values, vision and mission of the
  Trust
• In pursuit of the reasons for its
  establishment, the Guiding values, mission and
  vision of the Trust are
• Guiding values To always act in the best
  interests of society in promoting effective and
  efficient use of resources in a manner based on
  integrity, transparency, accountability and
  responsibility.
• Mission To develop, promote, encourage and
  support the adoption of sustainable best
  practices in corporate governance.  
• Vision To be a leading organization in the
  promotion and facilitation of best practices in
  Corporate Governance for the economic development
  and social transformation of society.  

25
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Objectives of the Trust are
• To promote, stimulate, advocate and co-ordinate
  the development, articulation and implementation
  of good corporate governance principles and
  practices in Kenya , the East African Region and
  African Continent  
• To establish a sustainable Centre for Corporate
  Governance to take responsibility for the
  effective implementation, policing and
  enforcement of compliance with the principles and
  practices of good Corporate Governance
• To serve as a resource and data centre on
  corporate governance
• To co-operate, co-ordinate and collaborate with
  other organizations with similar aims and
  objectives within and without the country to
  advance the cause of good corporate governance
  and eradicating bad governance practices
• To create public awareness and sensitize
  corporate leaders and policy makers on the need
  for good corporate governance

26
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• To facilitate, assist and promote the carrying
  out of research into and studies in any subject
  or matter of interest to corporate governance
  with a view to identifying and replicating good
  practices for enhanced corporate performance and
  eradicating bad governance practices
• To facilitate and be involved in the development
  and implementation of appropriate educational,
  training and development programmes aimed at
  enhancing the performance of corporate entities,
  corporate leaders, and policy makers in all
  sectors of the economy
• To provide and create an institutional framework
  for the evaluation, monitoring, recognition and
  reward of good corporate governance practices and
  otherwise encourage corporations to embrace
  corporate governance principles and practices
• To raise funds and other resources from all
  possible sources and to set up a
  self-perpetuating endowment fund to ensure future
  sustainability.

27
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Membership
• Membership of the Trust is facilitated by the
  stakeholders consultative council that is
  currently made up of
• Business and Trade Associations
• Kenya Association of Manufacturers
• Federation of Kenya Employers
• Kenya National Chamber of Commerce and Industry
• Association of Kenya Insurers
• Fresh Produce Exporters Association of Kenya
• Nairobi Central Business District Association
• Petroleum Institute of East Africa
• Association of Telecommunication Service
  Providers in Kenya

28
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Professional Bodies and Institutions
• A.P.S.E.A. Association of Professional
  Societies of East Africa
• I.C.P.A.K. Institute of Certified Public
  Accountants of Kenya
• A.C.C.A.(K) Association of Certified Chartered
  Accountants
• I.C.P.S.K. Institute of Certified Pubic
  Secretaries of Kenya
• Law Society of Kenya
• Institute of Bankers
• Kenya Institute of Management
• Civil Society Organizations Trade unions
• C.O.T.U.Central Organization of Trade Unions
• Transparency International
• Action Aid

29

• Regulatory Agencies
• Capital Markets Authority
• Nairobi Stock Exchange
• Central Bank
• Registrar Of Companies
• Individuals and organizations selected on merit
  to represent
• Business Enterprises
• Academic Institutions
• Professional
• Civil society

30
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• The Private Sector Corporate Governance Trust,
  was called upon to implement the strategic
  thrusts adopted in March 2000 subject to
  availability of funding
• Build Appropriate Institutions
• Establish a viable and sustainable Center for
  Corporate Governance to take responsibility for
  the implementation, compliance and enforcement of
  good corporate governance practices in Kenya and
  ensure service delivery
• Create and put in place the framework for a
  viable foundation to ensure the independence,
  neutrality, stability and sustainability of the
  Center by putting in place reputable agents,
  fundraising and asset building.

31
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Build Institutional Capacity
• Put in place the technical and professional
  institutional capacity and capability to steer
  and drive the implementation of good corporate
  governance practices in Kenya
• Strengthen the reputation, image and public
  confidence in the Trust by putting in place
  prudent standards of corporate governance,
  monitoring and evaluation mechanisms, building
  national capacity and awareness raising measures
  and efficient service delivery to build the
  reputation of and create public confidence in the
  Trust as a professionally competent, and reliable
  institution to guide and promote corporate
  governance in Kenya

32
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Build National Capacity to implement and apply
  the Principles of Corporate Governance through
• Training and Education  
• To build national capacity to implement and apply
  good Corporate Governance practices by
  facilitating increased range of training
  opportunities for directors and potential
  directors and by exposing and educating as many
  people as possible on good Corporate Governance
  principles
• Research and Development
• To contribute to the continued improvement and
  refinement of the Principles of good Corporate
  Governance by studying, documenting and
  understanding how current systems operate, the
  problems to good governance and the potential for
  improvement.

33
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Monitoring and Evaluation by developing criteria,
  mechanisms and systems to monitor and evaluate
  the extent to which companies in Kenya embrace,
  apply and implement good corporate governance
  principles and practices and to assess the impact
  that this has on improving national efficiency
  and competitiveness in enhanced wealth production
  and employment creation.
•  Advocacy and Communications Programme
• To sensitize, motivate and influence policy
  makers, corporate directors and community leaders
  to embrace and promote good corporate governance
  principles and to motivate the participation and
  involvement of the community in actively
  demanding good economic governance for
  sustainable wealth creation increased employment
  opportunities etc through leadership for
  efficiency and probity leadership with
  responsibility and that is transparent and
  accountable in all fields of human endeavour  and
  in developing a national framework of values,
  ethics and ethos for good Corporate Governance.

34
KENYAS APPROACH TO PROMOTING CORPORATE GOVERNANCE

• Information and Documentation Centre through
• Establishment of a resource centre and databank
  on corporate governance
• Publication and communication of research results
  and studies showing the impact that bad
  governance practices and corruption have on
  national economic performance, the quality of
  life of the community and on employment
  opportunities  
• Periodic and regular publication of journals and
  magazines to facilitate dissemination of
  information, exchange of ideas and experiences
  and to promote policy dialogue on good corporate
  governance.  

35
WHAT HAS BEEN ACHIEVED?

• The Trust has achieved the following within its
  short existence-
• Published and distributed The Principles and
  Sample Code of Best Practice for Corporate
  Governance in Kenya
• Corporate governance has now been put on the
  Kenyan policy agenda. This is evidenced by the
  fact that-
• The Central Bank of Kenya now demands good
  corporate governance for financial stability and
  sustainability from all licenced banks and
  financial institutions
• The Capital Markets Authority requires all listed
  companies to comply with principles of good
  corporate governance
• Parliament and the public investment committee,
  in particular is now reviewing corporate
  governance in state owned enterprises
• The Government, and specifically the Department
  of Government Investments and Public Enterprises
  is demanding good corporate governance from all
  state corporations and appropriate policy and
  legislative changes are being implemented or
  initiated

36
WHAT HAS BEEN ACHIEVED?

• All Universities are now examining their own
  governance practices
• Many public, private and state corporations
  boards are requesting for seminars or training on
  corporate governance
• The Non-Governmental Organizations have developed
  and are actively debating own governance
  standards.
• Entered into Collaborative arrangements with
  similar Initiatives in Uganda and Tanzania with a
  view to build consensus in favour of uniform
  principles and practices of good Corporate
  Governance in the East African region and
  agreement on appropriate policy, regulatory and
  institutional reforms necessary to promote good
  Corporate Governance
• Collaborated with Tanzania, Uganda and the
  Secretariat of the EAC to establish the East
  African Centre of Corporate Governance

37
WHAT HAS BEEN ACHIEVED?

• Initiated collaborative arrangements with the
  public and not-for-profit social sectors to
  promote partnership for sustainable wealth
  creation and organized regional workshop on the
  same
• Collaborated with African Capital Markets Forum,
  United Nations Economic Commission for Africa,
  Secretariat for Institutional Support for
  Economic Research in Africa and the CACG to
  organize the African Consultative Corporate
  Governance Forum in Johannesburg held on
  16th-18th July 2001 with the support of the GCGF,
  CIPE, the World Bank and the Commonwealth
  Secretariat, and where it was requested to act as
  the Interim Secretariat for the Pan-African
  Initiative.

38
WHAT HAS BEEN ACHIEVED?

• Hosted, organized or facilitated various
  international conferences including
• The East African Regional Workshop on Corporate
  Governance held in Arusha in April 2000,
• The Regional Corporate Governance Conference for
  members of Parliament on 27th- 28th October 2000,
• The African Consultative Forum on Corporate
  Governance on 30th October 2000,
• The Commonwealth Association for Corporate
  Governance 3-day convention held over the period
  31st October and 2nd November 2000,
• The two-day workshop on Corporate Governance in
  the Financial Sector held on 1st-2nd November
  2000.

39
WHAT HAS BEEN ACHIEVED?

• Has successfully conducted 5-day residential
  training courses for directors as follows
• May 2001 at Nairobi with CACG support,
• Mombasa in September 2001,
• Nakuru in November 2001
• Nairobi in February 2002.
• Has conducted 2 day intensive Training of
  Trainers course for 12 potential trainers in
  February 2002
• Has held consultative meetings with various
  professional associations and hopes to introduce
  corporate governance as a subject of study in
  many of the professional courses offered by these
  professional bodies
• Has developed post graduate and diploma
  curriculum and initiated discussions with local
  universities with the objective of facilitating
  introduction of diploma and graduate courses in
  corporate governance

40
WHAT HAS BEEN ACHIEVED?

• Carried out a study on the role of social
  dialogue and industrial relations in enhancing
  good corporate governance for sustainable
  development
• We have in Collaboration with the Central Bank
  and the Capital Markets Authority Initiated a
  study on Corporate Governance for Financial
  Stability in the Banking and Financial Sector
• Undertook a study on corporate governance in
  Public and Private Universities in Kenya the
  report of which was circulated to Universities
  and a workshop held on Corporate Governance in
  Public and Private Universities in November
  2001.
• Undertook a study on corporate governance in
  public and state corporations in Kenya the report
  of which was circulated to the Government and
  State Owned Enterprises for comments and a
  workshop held on Corporate Governance in Public
  and State-Owned Corporations in January 2002 to
  discuss those guidelines.

41
WHAT HAS BEEN ACHIEVED?

• With funding from the Center for International
  Private Enterprise (CIPE), the Trust organized a
  technical workshop for shareholders January 2002,
  launched a Shareholders Association and held a
  national convention on corporate governance to
  promote public awareness in Corporate Governance.
  
• On the wider front various other players have now
  introduced recognition and reward programmes that
  seek to identify business enterprises that excel
  in performance for example the Company of the
  Year Award co-ordinated by the Kenya Institute of
  Management the best CEO and Company of the Year
  Award co-ordinated by the Nation Media Group and
  PriceWaterHouseCoopers the best accounts of the
  Year co-ordinated by the Institute of Certified
  Public Accountants of Kenya (ICPAK), all of which
  in some measure address aspects of good corporate
  governance.

42
WHAT HAS BEEN ACHIEVED?

• There is enhanced consultation on issues of
  corporate governance between the government, the
  private sector and the Trust. Whether this has
  resulted in improved corporation and national
  economic performance is not clear at this stage.

43
WHAT ROLE FOR DEVELOPMENT PARTNERS?

• Standard setting and or agreement on standards is
  at best the very initial step in the
  implementation of good corporate governance
  principles. It is critical to put in place the
  institutions, mechanisms and processes that would
  facilitate implementation of good corporate
  governance practices on a regional and country
  basis.
• Development partner support is required to assist
  in the establishment of institutions, and in
  building institutional and national capacity to
  implement whatever principles or standards that
  are adopted.
• It is also critical that development partners
  integrate and demand good corporate governance in
  all the programmes that they support.

44
WHAT ROLE FOR DEVELOPMENT PARTNERS?

• Development partners are therefore requested to
  come to the aid of Africa by providing technical,
  material and moral support in this process of
  promoting, implementing and enforcing good
  corporate governance.
• In conclusion corporate governance is seeking to
  promote and facilitate citizen engagement in the
  creation and production of wealth, promote
  enhanced ownership of viable business enterprises
  and foster vigorous economies in Africa which
  can competitively trade with the rest of the
  world,
• Let us all remember that employment is the only
  assurance that can facilitate the involvement and
  participation of the majority in the development
  process and that unless poverty is eradicated
  through sustainable wealth creation the world
  cannot remove the enclaves of poverty which
  encourage ill feelings towards the rich,
  fostering the development of international
  terrorism.