Africa has seen massive failures in Public Private Partnerships, donor funding that was misappropriated on large scales and project that have all the hopes and dreams of creating jobs and prosperity for its people never being implemented passed the planning phase.
At least this is the thought of most international investors and donors. The successes of many projects are sadly far over shadowed by the failures of others and some of these on spectacular scale. In a fairly recent trip to Uganda I was asked to become involved in a government backed fund raising scheme for Hydro Electricity, the shocking reality is that these projects have been available to investors for years with virtually no takers.
One has to wonder why? The reality is that Africa has ignored Corporate Governance and it is costing the continent growth on a spectacular scale.This is even apparent in South Africa, where we have some of the most progressive codes in corporate governance in the world, in the form of the old King II and now the King III codes. By applying these codes one can effectively manage projects, organisations, partnerships and companies with exquisite corporate governance. The failure to apply these codes is clearly visible in the failures of most state owned company boards, I don’t think it is going to take an avid news reader to think of at least five “para-statels” who’s boards have failed dismally and in the private sector it could also be visible in the board failure of Pioneer Foods.
With the entire continent requiring massive inward investment, donor funding and progressive projects it is clearly time for leaders in both the business and the government sector to embrace proper corporate governance and to take the plight of all stakeholders involved seriously. Africa needs to instil faith in itself and grow trust and respect from the outside community. The only way this can be achieved is by implementing proper corporate governance even in its most basic activities.
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