Good corporate governance will accelerate Ghana’s transformation: Commerce Minister
Mr. Alan John Kwadwo Kyerematen, The Minister of Trade and Industry, says good corporate governance practices are necessary for promoting socio-economic transformation in Ghana.
He said it was in the interests of the government and the country to promote best practices in corporate governance nationwide to help build strong institutions and industries and an even stronger economy, inclusive and more sustainable.
Mr. Kyerematen said this in a speech read on his behalf by the Deputy Minister of Commerce and Industry, Nana Ama Dokua Asiamah Adjei, during a sensitization forum on the “African Principles and Guidelines on Corporate Governance”. ‘Business – Building a Framework for Competitiveness and Growth for the Private Sector in Ghana’, organized by the African Peer Review Mechanism (APRM).
He said financial reforms in Ghana undertaken by the Bank of Ghana, the global financial crises of 2007 and 2008 were due to corporate bankruptcies and poor corporate governance.
Therefore, he said good corporate governance was important in building not only strong institutions, but also communities and economies and, therefore, helped avoid corporate collapse.
He said that as the country emerges from the current COVID-19 pandemic, there needs to be a renewed emphasis on strengthening governance and good management of Ghanaian businesses and public sector institutions to achieve the desired results for all stakeholder groups.
Corporate governance standards continue to evolve globally with increasing emphasis on effective risk governance, promotion of sustainable and social development goals, board effectiveness administration, strong internal controls and incentive structures that support prudent management.
Mr Kyerematen said the new Companies Act 2019 (Act 992) has raised governance standards for companies while similarly the provisions of the Public Financial Management Act 2016 (Act 921) , the State Interests and Governance Act 2019 (Act 990) served as guides.
All of these, he said, have raised the bar for governance of public sector institutions, including state-owned enterprises, to help promote transparency, accountability and prudence in the management of public resources. state for the benefit of Ghanaians.
Mr. Rockson Kwesi Dogbegah, President of the Institute of Directors-Ghana (IoD-Gh) said that the key elements of a functioning democracy – effective institutions, accountable government policies and strong rule of law – were the same factors that contributed to a competitive economy. .
He said the drivers of good corporate governance are the laws, rules and institutions that provide a competitive playing field and discipline the behavior of stakeholders.
Mr. Dogbegah, also Chairman of the African Corporate Governance Network (ACGN), noted that experience in developed market economies showed that good governance was rooted in the availability and enforcement of the appropriate legal framework, national codes and their strict application associated with appropriate behavior. and cultural considerations promoting sustainable socio-economic development.
“There is now growing momentum locally and internationally towards implementing more laws and government regulations that impose obligations on companies, their directors and officers, to adopt, implement and adhere to good corporate governance principles,” he said.
Failure to do so, the IoD-Gh chairman said, could result in the imposition of legal and criminal penalties on the company, its directors and its officers.
He said the ACGN sees the framework as appropriate but strongly recommends that countries bring their cultural guidance to its use and that stakeholders ensure that an increased appetite for implementing the codes once developed is developed.
Professor Edward Maloka, Director General of the APRM, said that “good corporate governance is good for Africa”, adding that the practice of good corporate governance was universal.
He said that since its inception in 2003, the APRM had conducted 25 reviews among 42 of its member states, with Ghana being the first, adding that the adoption of the Principles and Guidelines of Good Corporate Governance would accelerate economic development in Africa. .