IFC launches Corporate Governance Programme

The International Finance Corporation (IFC), has launched the Corporate Governance Programme (CPG) in Ghana with a call on nations to strengthen their long-term economic performance to achieve stronger international financial systems.

The Programme is to strengthen the foundation of long term economic performance and generate growth opportunities for small and medium enterprises and create more job opportunities.

It would also improve corporate governance practices cross markets within the West African sub-region and engender good corporate governance practices in the financial system and corporate businesses as a whole.

Mr Millison Narh, First Deputy Governor of the Bank of Ghana, who was the Guest Speaker, recalled the grave consequences of the widespread corporate scandals and failures in on innocent citizens, and expressed the need for institutions to adopt and thoroughly implement sound supervisory principles and practices.

“The crises brought into sharp focus the need for banks to improve their corporate governance practices and for bank supervisors to ensure that sound corporate governance principles are thoroughly embedded and consistently implemented by banks,” Mr Narh noted.

He reminded banks to ensure to continue to ensure sound corporate governance practices as a check on mismanagement and in order to infuse discipline in the decision making process at the board level.

“The corporate governance principles of integrity, transparency, accountability, fairness, probity and responsibility are the main drivers of most corporate governance codes and frameworks that have been adopted internationally,” the First Deputy Governor said.

Mr Gerhard Brugger, Swiss Ambassador, said the CPG, enshrined in Swiss State Secretariat for Economic Affairs, is considered at the heart of economic stability and growth.

He however noted that governance in both the private and the public sector is still a challenge despite the rapid growth in Ghana and the sub-region.

“It is obvious that it is not enough to have a good business idea. Investors care deeply about corporate governance, making it a critical factor in investment decisions.

“But also from a company’s point of perspective, corporate governance practices are critical for developing sustainable businesses,” the Ambassador said, adding “besides shielding from bad management practices, proper corporate governance structures can prove to be an invaluable source of inspiration and support for business development” .

He commended Ghana for leading in many respects in regards to political and civil governance and urged the country to take a lead in economic and corporate governance.