Zimbabwe: Embrace Corporate Governance, Firms Urged

June 26, 2013

NEWLY elected president of the Institute of Chartered Secretaries and Administrators in Zimbabwe Mr Glovah Ngoni Madzima says the public and private sector should embrace good corporate governance practices as an important tool for sustainable economic development. [EXPAND Read more]

He said weak corporate governance frameworks reduced investor confidence. Mr Madzima, who is the finance director and company secretary of CarnauldMetalBox Zimbabwe Limited, a wholly owned subsidiary of the Johannesburg Stock Exchange- listed firm Nampak Limited, was elected president at the institute’s recent annual general meeting in Harare.

People’s Own Saving Bank risk manager and compliance officer Mr Siphiti Nkomo and former distribution director for Cairns Foods Mr Richard Summers were elected vice-presidents.

“Weak corporate governance frameworks reduce investor confidence and can discourage outside investment,” said Mr Madzima.

“Embracing the world’s best business practices should help businesses achieve sustainable growth and profitability. Our management skills are a function of our personal competencies and how we behave. As leaders we must operate at the leading edge, outside our comfort zone.

He said Zimbabwe is poised for sustainable economic growth, with potential of attracting foreign direct investment. There was need, therefore, for good corporate governance practices on the part of any organisation looking for such investment,” he said.

“Corporate governance comprises a country’s private and public institutions, both formal and informal, which together govern the relationship between the people who manage corporations and all others who invest resources in corporations in the country.

“The institutions of corporate governance serve both to determine what society considers to be acceptable standards of corporate behaviour and to ensure that corporations comply with those standards.

“Thus the importance of governance professionals cannot be overemphasised,” he said.

Mr Madzima added that he intended, during his one-year term as president of the institute, to drive home the message of the importance of practising good corporate governance at the various events that are on the institute’s calendar and other public fora.

“Students studying for the Chartered Secretary qualification should embrace the core values of the institute, namely integrity, honesty and accountability, competence and proficiency, quality service and excellence, teamwork and innovativeness at all times,” he said.

“They should be firmly grounded on good ethics and integrity and also exemplify excellence in corporate governance,” he said.

Mr Madzima had been vice-president of ICSAZ for two years. He has vast experience in tobacco processing and beverages industries, health funders and administrators sector, clothing and furniture retailers and manufacturing industries as well as the manufacturing of metal and plastic packaging industry. [/EXPAND]