Corporate Governance Parctices and Chanllenges in Africa

Abstract

This paper examined the practice of corporate governance in developing countries, and specifically in Africa. To carry out the exercise, the efficacy of corporate governance mechanisms and legal (legislation) framework were examined. The paper observed a weak or non-existing compliance and/or enforcement of corporate governance legislation. It concludes that corporate governance in most African countries is ineffective, inefficient and has ultimately failed. The paper therefore, recommends that for African countries to reap the benefits of effective corporate governance there is the need to review existing legislations and to strengthen the enforcement mechanism of the regulatory institutions.

Key Words: Governance, Stewardship, Stakeholders, Ethics, Accountability.