African SMEs need to focus on corporate governance

Author: John Crabb | Published: 11 Oct 2018

Small and medium-sized enterprises (SMEs) account for a significant proportion of the economy of most of African nations. But the private sector is still facing a number of hurdles which are in the way of its growth.

Adequate corporate governance is one area holding SMEs back, as is the lack of private sector work, says Letitia Adu-Ampoma, director at Peverett Maxwell, a corporate governance consultancy firm in Accra, Ghana, and a speaker on the IBA's 'Corporate governance for African business: the role of lawyers on a continent of small and medium-sized enterprises' session."We don’t have the essential fundamentals and therefore we can’t scale, whether it is through foreign direct investment or through local companies applying themselves locally," she says. "Different kinds of corporate governance cause challenges, it tends to start in banking and finance, and because of the centrality that has to the economy it has a wider impact." ...