The World Bank’s private sector arm said on Wednesday that it will help Eastern Africa’s private sector to enhance the level of its corporate governance.
International Finance Corporation (IFC) Africa Corporate Governance Program, Corporate Governance Officer Rose Lumumba told a media briefing in Nairobi that corporate governance is a serious issue in the region.
“In the recent past, we have witnessed the collapse of a number of private firms due to bad governance. That is why we are rolling out corporate governance initiatives to the private sector,” Lumumba said during an Institute of Certified Public Secretaries of Kenya and IFC Governance forum.
IFC will provide technical support to the private sector which is the engine of economic growth as well as the driver of job creation.
IFC’s Eastern Africa Governance program covers Ethiopia, Uganda, Kenya and Tanzania.
IFC hopes to build the capacity of those who work in private firms and enable them to include corporate governance into their decision making.
“The employees should be aware of the consequences of unethical business practices,” she said.
Lumumba said they have developed tools to enable company officials to make good decisions. She noted that companies that have good governance will be able to attract investors as well as cheaper sources of finance.
The Corporate Governance officer noted that family owned business should prioritize corporate governance. “This will ensure firms survive even after the death of the founders,” Lumumba said.
IFC is also working with professional bodies so that they train their members on global best practice of corporate governance. Enditem