Corporate Governance in Africa’s State-owned Enterprises: Perspectives on an Evolving System

The document examines the challenges facing state-owned enterprises (SOEs) in Africa, highlighting how their proximity to state power often leads to politicised board appointments and regulatory failures. Using data from APRM reviews of six SADC countries, it argues that SOEs must be treated as professional companies, with merit-based appointments and clear legal mandates, to drive broader economic development and good corporate governance across the continent.

• State-owned enterprises (SOEs) in Africa frequently suffer from systemic governance failures, including unformed regulatory systems, mandates that lack clarity, and the appointment of boards based on political rather than professional criteria.
• The proximity of SOEs to state power creates significant risks for favouritism and conflicts of interest, as the state acts as both the owner of the enterprise and the market regulator.
• Board appointments in African SOEs are often driven by political considerations, leading to a lack of necessary technical expertise and the potential for biased business decisions.
• SOEs can act as a catalyst for the wider economy; their adherence to good corporate governance can drive similar practices within the emerging private sector, particularly where SOEs are primary customers or suppliers.
• In some jurisdictions, SOEs face conflicting regulatory requirements. For example, South African SOEs must navigate both the Public Finance Management Act and the Companies Act of 2008, which are not clearly aligned.
• While some African nations like Mozambique, Tanzania, and Zambia pursued privatisation in the 1990s, recent trends show a renewed belief in the role of the state and a questioning of privatisation outcomes.
• South Africa's approach to SOEs involves introducing market-style management without full privatisation, though the system still faces high-profile failings and instability in entities like the public broadcaster.

APA

Corrigan, T. (2014). Corporate Governance in Africa’s State-owned Enterprises: Perspectives on an Evolving System. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-102.pdf

Chicago

Corrigan, Terence. Corporate Governance in Africa’s State-owned Enterprises: Perspectives on an Evolving System. South African Institute of International Affairs, 2014. https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-102.pdf.

Wikipedia

{{cite report |last1=Corrigan |first1=Terence |title=Corporate Governance in Africa’s State-owned Enterprises: Perspectives on an Evolving System |publisher=South African Institute of International Affairs |date=September 2014 |url=https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-102.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{corrigan2014corporate, author = {Corrigan, Terence}, title = {{Corporate Governance in Africa’s State-owned Enterprises: Perspectives on an Evolving System}}, institution = {South African Institute of International Affairs}, year = {2014}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-102.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }