Corporate Governance Conference

Accra, Ghana

January 29-30, 2001
Sponsored by CIPE-IEA West Africa

Final Conference Report
Research Papers
Corporate Governance in Nigeria
Corporate Governance in Ghana

BACKGROUND

While completion of privatization and improved capital market development in Africa is desirable, they are taking place in a corporate environment marked by unclear practices and procedures, which if left unchecked could actually have the effect of creating the opportunity for widespread mismanagement, corruption, and loss of shareholder control. Rather than "democratizing" the economic sector by dismantling state monopolies and creating a shareholder nation, the lack of effective corporate governance regulations could further promote insider dealing in the capital markets and hidden or illegal activity within corporate entities. By ensuring the adoption of sound corporate governance principles, West African countries can create safeguards against corruption and mismanagement, while promoting transparency in economic life and fighting institutional resistance to privatization by state-owned enterprise management.

In effect, sound corporate governance brings the values of democracy (i.e. open management, transparency, rule of law, protection of shareholders’ rights) to the corporate level, and serves to ensure that effective rules of the game allow equal access and protection for all participating in economic life. Private sector players have begun to realize the scope and nature of the problem, but they lack information on strategies and differing models of corporate governance, as well as the ability to structure consensus around the issue. Africa’s business and government leaders need to deepen their dialogue on appropriate corporate governance practices in the region in order for broader citizen participation in the economy, increased local investment, and substantial foreign investment to occur.

With funding from the National Endowment for Democracy (NED) and Exxon-Mobile, and in cooperation with the Institute of Economic Affairs (IEA) in Ghana and the Development Policy Center in Nigeria, CIPE sponsored a two-day conference in Accra, Ghana that brought together over 50 public and private sector participants from Ghana and Nigeria. The conference strengthen ties between participating organizations and provided a forum for them to develop strategies to strengthen corporate governance practices, policy, and education at the country level and define mechanisms for regional exchange and coordination.

PROJECT OBJECTIVES

The objectives of the conference were:

• to explore the concepts surrounding corporate governance in the West African environment;
• to gain a common understanding of the status of corporate governance initiatives in Cote d’Ivoire, Ghana, and Nigeria;
• to look at the lessons of Eastern and Southern Africa in the area of corporate governance;
• to encourage African think tanks and private sector business organizations to serve as "centers of excellence" to pursue appropriate activities to promote corporate governance;
• to build public/private consensus for a strategy to strengthen corporate governance practice, policy, and education in Cote d’Ivoire, Ghana, and Nigeria;
• to explore mechanisms of regional exchange and coordination.

PROJECT ACTIVITIES

The first day of the conference featured presentations on internal and external controls in good corporate governance and two CIPE-sponsored presentations on the current status of corporate governance in Ghana and Nigeria made by think tanks from each of those countries: the Institute of Economic Affairs (IEA) in Ghana, and the Development Policy Center (DPC) in Nigeria.

The second day, country-specific working groups discussed progress and constraints in corporate governance and developed action plans for developing and implementing strategies to strengthen corporate governance practices, policy, and education at the country level and define mechanisms for regional exchange and coordination.