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Corporate governance in Africa’s State-owned enterprises: Perspectives on an evolving system (October 2014)

Corporate governance in Africa’s State-owned enterprises: Perspectives on an evolving system (October 2014)

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The African Peer Review Mechanism’s (APRM) Country Review Reports (CRRs) provide a unique overview of central themes in Africa’s political economy, and the insights they provide into corporate governance are particularly useful. State-owned enterprises (SOEs) are a significant element in Africa’s economies, and as such their participation in the corporate governance regime is important if they are to come into their own. Common problems, such as unformed regulatory systems, politicised board appointments and unclear mandates, demonstrate that considerable work still needs to be done to achieve a durable SOE corporate governance regime. Ultimately, this will be achieved through stressing the professionalisation of the continent’s SOEs: recognising that they are companies and should be treated as such; depoliticising boards; and establishing clear regulations and mandates. SOEs should, in common with emerging thinking on the subject, structure their systems on the basis of good corporate governance principles.

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Author: Terence Corrigan, South African Institute of International Affairs

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