GICAM launches corporate good governance code for CEMAC sub-region.

First of its kind in the business world in the sub-region, the document, officials said, shall serve as an instrument of long-term transformation to the performance index and lifespan of enterprises. 

It was launched over the weekend at the Headquarters of GICAM, in Bonanjo, Douala.

With new urgencies to keep enterprises of both the private and public sectors competitive in global economy, and afloat to risk, corporate governance has become an increasingly important part of corporate strategies. 

To that effect, GICAM sought a partnership with the French Development Agency, ADF, and its subsidiary, PROPARCO, for the elaboration, adoption and incorporation of a Code of Good Governance. 

Reputed for promoting sustainable economic, social and environmental development for over 45 years through funding, the French agencies did not hesitate to push the agenda to fruition.

The agency's Director for Pilot Networks, Myriam Brigui, commended GICAM's administration for the consistent work towards ameliorating the business climate in Cameroon.

"Employing good corporate governance not only lowers the risk of non-compliance with statutory and regulatory obligations, it helps a company discourage or counter charges or assumptions that it’s not progressive or open-minded. Sound corporate governance policies and practices can lead to corporate diversity, green credentials, fair supply chains and other outcomes that today’s investors value. As a result, corporate governance can be a significant business differentiator," she added.

"Good corporate governance ensures that an organisation’s board of directors meet regularly, retain control over the business and have clearly defined responsibilities. It also ensures a robust risk management system," Brigui disclosed. 

She continued that: "Corporate governance is one of the cornerstones of any good business. Corporate governance encourages robust and effective decision-making through processes, practices and policies. Moreover, it provides the first line of defence against any allegation of malpractice or dereliction of corporate duty".

‘Strong pillar for responsible investment’

The newly launched code has been described by the Director of ADF, Virginie Daho as a "strong pillar for responsible investment".

Before now, GICAM had drafted and launched a code of ethics for companies and a Charter of entente between the public and private sectors.

The said regulatory instruments, GICAM president, Celestin Tawamva, noted, are all vital to every employer who wants to benefit from international support.

Tawamba said an enterprise where internal regulations and governance is absent or not respected, is weak and exposed to risk.

With the global economic shocks brought about by COVID-19 and major world crises, most entrepreneurs in Cameroon could not survive the heat.  GICAM's mandate to defend the interest of the private sector, necessitated the need to enact a Good Governance Code.

However, Celestin Tawamba regretted the fact that most entrepreneurs in Cameroon are mediocre in the growth margins.

"Cameroonians love to create jobs and invest, everyone is eager to be an entrepreneur, but our studies has proven that in every10 companies, eight die within the space of two years. This is because of the poor governance practice by CEOs. As such, they can't be competitive and can't experience sustainable growth," he said.

According to findings established by the task force in charge of elaborating the Good Governance Code, 50 per cent of enterprises do not hold administrative meetings, 62 per cent suffer from conflict of interest and just 32 per cent are in line with management systems.

This, he said, has been expounded by entrepreneurs’ lack of accountability, non-respect of regulations, independent mindset, sole control of operations, amongst others. 

The President of the task force, legal luminary, Jacques Johnathan Nyem, emphasised that, these lapses sometimes explain the reasons entrepreneurs will suffer wreckages in face of crisis. 

‘Extra package to existing ones’

He added that, what the good governance code will bring as extra package to existing ones, is that it has been drafted with tested, proven practical guidelines to help a company face any form of challenge 

Nyem called on CEOs to get a copy of the document, adhere to its guiding principles if the above ill-practices must change.

GICAM, it was said, will henceforth launch trainings with company heads, an advocacy campaign with the government to make sure that SMEs that will be benefiting from certain incentives, would have applied the good governance principles.

Worthy of note is that, the task force upon working on document, took into consideration the economic realities of the region.