Ways to Improve Corporate Governance in Africa

Improving corporate governance should not just be a one-time thing but a continuous initiative. There are different development styles per country in Africa, which makes it important for governing leaders to assess the situation in their locality before planning out their goals for developing sound corporate governance.

Africa has seen great efforts in achieving sound corporate governance in the past years. Corporate governance is now considered a prerequisite for economic development. As mentioned, it is a conscious and continuous effort to determine the path on which your company will flourish. Here are some tips that will help you in improving your strategies in corporate governance:

Utilize Technology for Improved Governance

Africa’s central pillar in advancement is its utilization of technology. Kenya serves as a prime example of this. It is one of the countries that have spearheaded digital payments to advance the financial sector. Africa’s other concerns involve transparency, sustainability, collaboration, and accountability. Addressing these concerns is possible with the right choice and implementation of technology.

For board members and secretaries, addressing such issues can prove to be challenging. Board members bear the responsibility of improving corporate governance in an institution. To securely manage and improve collaboration, especially during the pandemic, utilizing live meeting tools such as Audio-Video Conferencing and in-meeting voting will help your board develop critical decisions on your corporate governance strategies.

Assess the Business and Political Environments

The business and political environments in your country greatly influence how you should plan corporate governance. Both settings are deeply rooted in varying historical backgrounds and ethical values, ultimately determining how a leader should strategize. Likewise, public sectors also influence economic growth and activities.

Researching and establishing strong pillars in your plan will help you out in both short and long-term situations. As a board member, you can decide on how to address areas of improvement in your corporate governance. Both business and political environments change in Africa, which is why even after the initial stages of your planning, assessing these is essential. After all, one should not plan blindly, or else everything will go to waste. Whether you are a local or not, take note of the historical influence on business and political environments since this could also impact the road that a country’s economic development will take.

Enhance Your Security Measures

While some still argue that corporate governance should not be the main focus of each institution, recent events prove that this is not the case. Two examples of this are the security attacks on the National Security Agency of Nigeria in 2012 and the municipal government of Johannesburg in 2019. Sensitive information was leaked and services were shut down. It puts not only related institutions at risk but also the other institutions without enhanced security measures.

In Africa, transparency has long been an issue. The problem is so alarming that in 2015, 75 million Africans reportedly paid bribes. This is why it is important to note that sound corporate governance also involves instilling an ethical corporate culture. You can minimize the negative impacts of this to ensure that all your constituents immediately report if there’s something suspicious in their emails.

Another alternative is investing in training your people to identify and avoid security attacks. To prevent such and strengthen your security, you can also invest in highly secure solutions, store sensitive information, and leave you worry-free of external aggression. Since cyber threats are also evolving, so should your security measures.

Corporate Governance in Africa

An institution’s corporate governance in Africa is bound to improve if the executive management focuses on utilizing technology, assessing the business and political environments, and enhancing security measures. To make such decisions, Convene, a board management software, can help you streamline processes and improve collaboration, crossing out some from your checklist in enhancing your institution’s corporate governance.