Corporate Governance Challenges in African Organisations
Malcolm R Boyd, CEO, South Africa, Member
Hi Atem, great question. Our experience in the nonprofit and social impact sector is that as high as 90% of the individuals who accept a seat on a governing body have never sat on a board before. This generally leads to dysfunctional decision making on behalf of the organisation.
A report issued in 2015 showed that of the 28 Billion pounds allocated by EU to developing countries, approximately 50% was wasted in Africa and the middle east, due to poor management and lack of governance. The World Institute of Governance for Nonprofit Organisations (www.wignpo.org) is being established to address this along with other governance challenges such as lack of correct board composition, no succession planning, no clear understanding of the skills mix required, no board orientation conducted etc.
I am looking forward to follow any further reactions in this conversation.