Tanzania counselled on corporate governance

TANZANIA was advised to introduce a code of corporate governance that sets standards and principles for companies to operate in the country.

The advice has been given by the Chairperson of African Corporate Governance Network (ACGN), Ms Jane Valls, in Dar es Salaam, when addressing a news conference on the bi-annual ACGN meeting which started.

Ms Valls, who is a Chief Executive Officer of Mauritius Institute of Directors (MIoD), said at an Iftar that governance was important for sustainability and success of any country.

'You can look governance at corporate and country level,' she said. He gave an example of her country, Mauritius, she said MIoD and the government have spent a lot of time on investing in corporate governance, structuring legal framework and institutions in order to turn the country into a financial service centre and attract Foreign Direct Investment (FDI).

'If you want to attract FDI, the focus on corporate governance is absolutely essential because that is what investors are looking for,' she stressed.

She said that the growing trend of inter-continental business transactions and the increase in the flow of DFIs in Africa is giving rise to the importance of Corporate Governance in the continent.

'It has become imperative to come up with initiatives that guide the formulation of Africa-specific guidelines to corporate governance that champion the business dynamics of the continent and capitulate with global standards,' she said. ACGN is made up of 13 institutes of directors.

The Institute of Directors Tanzania (IoDT) which is hosting the meeting is one of the youngest members of the network. 'We have 54 countries in Africa, so there are a lot of others we would like them to join,' she said, adding that the network is working toward that with the help of the World Bank's International Finance Corporation (IFC) and other collaborators.

The ACGN was formed to develop institutional member capacity for enhancing effective corporate governance practices, building better organisations and corporate citizens in Africa.

The continental network 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.

Talking during his presentation, one of the Directors from a Paris based ESSEC Business School, Mr Jean-Marie Ardisson said the objective of managers in emerging countries should be slightly different because there is a demand and need to supporting infrastructure, education and entrepreneurship.

SOURCE: DAILY NEWS

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