Maravi

Improved corporate governance will boost investor confidence’

Improved corporate governance will boost investor confidence’
Written by Florence Bupe
Thursday, July 16, 2009 4:57:52 AM

THE African Peer Review Mechanism (APRM) has observed that improved corporate governance is critical in building investor confidence in the country.

During a luncheon hosted by the Institute of Directors (IoD) at Pamodzi Hotel on Tuesday, the APRM noted that Zambia in particular and Africa in general had historically attracted low investment levels compared to the potential it has.

“We hope that improved corporate governance will enhance domestic and foreign investor confidence. Corporate citizenship and social responsibility have to be managed sustainably and effectively,” the organisation said.

The APRM expressed optimism that Zambia would by next year be tabled for peer review, adding that the country would greatly benefit from the review process.

The organisation stated that countries that had acceded to the mechanism and been reviewed had so far greatly benefited from the process.

And APRM vice-chairperson Phillip Chilomo warned that unless the process of the APRM was carried out squarely and without undue interference, the targets would not be attained.

“Unless we come out squarely about this process, we won’t get the results of the APRM. We need to ensure that support systems are corrected before implementing certain processes,” he said.

Chilomo said currently, Zambia’s economy was being driven by only 30 per cent of the population because there was an imbalance in the distribution of resources.

“Zambia’s economy is being driven by 30 per cent of the population because something somewhere is not right. Zambia’s economy is growing because of urban areas, but the rural areas are deteriorating,” he said.

He said there was need to decentralise the country’s systems in order to enhance the implementation of the APRM process.

Meanwhile, Bank of Zambia (BoZ) deputy governor administration Dr Tukiya Mabula said the Central Bank would take on board the APRM in its financial sector development plan.

Labels: APRM

posted by MrK @ 3:57 AM