Corporate Governance in Africa: Key Challenges and Running Effective Boards

Globally, businesses and corporate organisations are experiencing unprecedented volatility, uncertainty, complexities, and ambiguity (VUCA), which have made succeeding a herculean task. Therefore, how an organisation is managed, directed, and controlled—corporate governance has become a leading topic among stakeholders in the business world. This is because corporate governance effectiveness has been recognised as an indispensable factor in achieving sustainable long-term organisational success, irrespective of the sector, business model, and size. The board is the focal point of corporate governance, and it is responsible for its effectiveness through the board’s oversight, leadership, strategic, and other functions. Overall, the state of many African Boards is not prosaic, and most African organisations struggle with running an effective board due to some cultural, economic, political, and legal factors on the continent. This chapter submits that corporate governance in Africa can be strengthened through legal and regulatory reforms; education and training; stakeholder engagement; auditing and monitoring; and meeting international standards and practising global best practices. However, African organisations seeking to run an effective board must focus on strategy, reinvention and innovation, technological adoption, and board assessment, amongst others.