IFC Corporate Governance Program Overview

Transcription

1 IFC EAST AFRICA CORPORATE GOVERNANCE PROGRAM IFC Corporate Governance Program Overview Addis Ababa, Ethiopia April, 2017

2 About IFC (International Finance Corporation) a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Mission- promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people s lives. In our six decades of experience, we work with more than 2,000 businesses worldwide. IFC s Corporate Governance Program helps companies become recognized as a market leader and gain competitive advantage through good corporate governance. provides advisory services to improve the corporate governance practices of corporate sectors For more information, visit

3 What does CG focus on? Commitment to Corporate Governance Board Functioning Management Control Environment Disclosure and Transparency Shareholder & Stakeholder Relations Family Governance

4 The IFC Corporate Governance Methodology Commitment to Corporate Governance Assessment of overall level of commitment to and formalization and awareness of governance in the organization. Board Effectiveness Assessment of board roles, composition, committee structure, procedures, director duties, overall functioning. Control Environment & Processes Assessment of the overall effectiveness of internal controls, risk management, internal audit, external audit, compliance. Shareholders Shareholders Board of Directors Management Shareholder & Stakeholder Relations Assessment of shareholder rights and protections, AGM procedures, information to shareholders, conflict policies. Family Governance Assessment of family s role in the business and mechanisms used to govern the relationship. Disclosure and Transparency Assessment of information disclosures to shareholders and market; transparency of information; accounting standards used. The IFC CG Methodology is internationally recognized, having been adopted by more than 30 other DFIs and other investment firms.

5 The IFC CG methodology has specific tools: Listed companies; Family owned unlisted companies; Financial institutions; Transition economy companies; and SOEs.

6 Market Level Work: Where are we focusing in the Sub-Sahara Africa Region? Nigeria CGP South Sudan CGP Ethiopia CGP Kenya, Uganda, Rwanda CGP Sierra Leone CGP Tanzania CGP Cote D Ivoire CGP Ghana CGP South Africa CGP

7 East Africa CG Program What do we do for East Africa countries? IS Firm Work Mainstreamed Due Diligence Assessments Directorships AS Firm Work CG Assessments & Implementation for IFC Portfolio/Pre-Pipeline Companies (Fee-based) AS Market Level Work Awareness Raising, Regulatory Strengthening, Institute/Partner Capacity Building We utilize internationally recognized tools and methods, combined with professionals who possess deep governance experience across all types of companies.

8 Firm Work- What specific services do we offer to firms? Advisory Service at Firm Level-(fee-based) Corporate Governance Assessments Commitment to Corporate Governance, Board Effectiveness, Management Control Environment, Transparency & Disclosure Practices, Shareholder & Stakeholder Practices. Targeted Improvement Solutions Help companies implement solutions to address specific governance issues CG Policies and Procedures Development help the Client improve and/or draft a number of relevant CG related policies Company Workshops provide focused workshops to directors and executives.

9 Market Level Work- What does our market level work consist of? Advisory Service at Market Level- (donor funded) Working with local institution to create awareness on CG, build partners capacity. Because of these work: Companies take action to improve their CG Companies Improve Performance Sustainable Private Sector Growth Companies Improve Access to Capital Investors- incorporate CG in investment process Regulators- promote sound CG (codes, regulations) Institutes- equipped to continue CG advocacy Consultants- equipped to help companies Press Market- Transparency is improved; Encourages good CG

10 IFC CG Excellence Program: New specialized CG Services for Our Clients Improving Board Effectiveness Board Composition Board Charters and Committee Effectiveness Clarifying board authorities and director duties Board procedures and disclosure to shareholders and other stakeholders Improving board evaluation Improving succession planning Addressing conflicts and related party transaction Improving the Control Environment Provide analysis and consultations Document reviews of by-laws, charters and other documentation Deliver tailored workshops and specialized assessment of control environment components Internal audit function Internal control system Risk governance Compliance to laws and standards Improving Family Business Governance Analyze and provide recommendations on family business governance practices Provide comprehensive family business governance training and workshops; including Family constitution Managing conflicts Succession planning Professional management

11 Let s change the way We do business It is not the quantity, BUT the quality of wealth that matters.

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