IFC, Switzerland Sign Pact for Corporate Governance in Sub-Saharan Africa

Switzerland has agreed to contribute up to $18 million to IFC initiatives aimed at strengthening corporate governance practices in Sub-Saharan Africa.

It is part of a larger agreement that will support such activities in multiple regions and contribute to a partnership effort to create more and better jobs. IFC is a member of the World Bank Group.

The Swiss Secretariat for Economic Affairs, or SECO, will provide up to $4.5 million to IFC’s Advisory Services in Sub-Saharan Africa to help private sector companies work with greater transparency, accountability.

Strong corporate governance practices help businesses expand their access to capital and enter new markets. Activities will include training for organizations such as institutes of directors and advising companies directly.

“The recent financial crisis is also a reminder of the global implications of corporate governance failure. Together with IFC we want to set the right governance benchmarks when supporting the private sector in development,” said Marie Gabrielle Ineichen-Fleisch, state secretary

Building on previous regional experiences, an IFC corporate governance program in South East Europe supported by SECO, IFC’s new program in Sub-Saharan Africa will include interventions in Cote d’Ivoire, Ghana, Nigeria, Senegal and South Africa, among others.

The improvement of corporate governance practices is widely seen as one important element in strengthening the foundation for individual countries’ long-term economic performance and in contributing to a strengthened international financial system.

“Good corporate governance encourages new investments, boosts economic growth, and provides employment opportunities,” said Jean Philippe Prosper, IFC vice president for Sub-Saharan Africa and Latin America and the Caribbean.

 ”IFC’s partnership with SECO will support companies’ efforts to grow and create jobs while mitigating risks in the most effective ways.”

Cooperation between Switzerland and IFC Advisory Services dates back to 1989. SECO’s recent support to IFC Advisory Services in Sub-Saharan Africa has totaled more than $40 million.