Corporate governance drives economic growth

HARARE – Several companies were recently honoured for their sterling work in good corporate governance issues at the 2017 Excellence in Corporate Governance Awards.

The prize ceremony was held under the theme: Promoting Good Governance for Sustainable Economic Development.

Speaking at the ceremony, Denys Denya, who is the executive vice president of the African Export-Import Bank and was representing his organisation’s president Oramah, said good corporate governance helps to drive economic growth.

“In a world of increasingly competing interest, it is important to stress that success requires that all stakeholders work together towards these common goals: (i) sustainable growth of the bottom line in the corporate world; and (ii) sustainable economic growth and employment creating in the public sector, creating a bigger cake so all can feed.

“Good governance enables the achievement of such goals as it speak to how resources, policies and procedures should be organised for the attainment of objectives, whatever the organisation/enterprise’s objectives are,” Denya said.

He said that poor corporate governance both at sovereign and corporate levels has been a major factor behind the banking crisis in Zimbabwe.

“But debate between public and private sector can no longer be approached from an ideological standpoint as done in 1980s during the implementation of Structural Adjustment Programmes. Public corporations are performing very well in China and Europe. Ethiopian Airlines, Airbus and Lufthansa are still largely owned by governments and some of the best performing and globally competitive Chinese companies are State-owned.