Building an African Corporate Governance

The document examines the state of corporate governance in Africa, noting that while it is generally underdeveloped and embryonic, a distinctively African approach is emerging. This approach, exemplified by South Africa's King Code, emphasizes socio-economic outcomes and the principle of ubuntu over purely financial or shareholder-centric metrics. The author highlights significant barriers to implementation, including a lack of professional skills (particularly accountants), poor institutional environments, and the prevalence of small, family-owned businesses. The briefing recommends that governments reform the business climate, nurture independent corporate governance infrastructure, and encourage cross-border cooperation to support business growth without imposing unrealistic regulatory burdens.

• Corporate governance in Africa is generally in an embryonic stage, characterized by a private sector dominated by small, unsophisticated, and often informal businesses where trust based on personal relationships is central to operations.
• A distinctively African model of corporate governance is emerging that prioritizes socio-economic development and sustainability over the shareholder-centric models of 'Anglo-Saxon' countries, integrating the social-ethical principle of ubuntu.
• South Africa's King Committee is a global leader and regional trendsetter by promoting a principles-based approach focused on 'people, planet, profit' rather than prescriptive legislation.
• The implementation of corporate governance is hindered by severe skill shortages, particularly a lack of qualified accountants and a narrow pool of suitable candidates for company boards.
• African entrepreneurs face significant systemic obstacles, including deficient infrastructure, corruption, and burdensome red tape, which discourage businesses from expanding or moving into the formal sector.
• Political interests often distort the business environment in Africa by controlling access to finance, assets, and licenses, which can undermine healthy competition.

APA

Corrigan, T. (2014). Building an African Corporate Governance. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-101.pdf

Chicago

Corrigan, Terence. Building an African Corporate Governance. South African Institute of International Affairs, 2014. https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-101.pdf.

Wikipedia

{{cite report |last1=Corrigan |first1=Terence |title=Building an African Corporate Governance |publisher=South African Institute of International Affairs |date=August 2014 |url=https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-101.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{corrigan2014building, author = {Corrigan, Terence}, title = {{Building an African Corporate Governance}}, institution = {South African Institute of International Affairs}, year = {2014}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2014/09/Policy-Briefing-101.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }