IFC, SECO of Switzerland set to strengthen economic growth in Ghana

The International Finance Corporation (IFC) has teamed up with the State Secretariat for Economic Affairs (SECO) of Switzerland to launch an initiative that will strengthen business and economic growth in Ghana.

The Africa Corporate Governance Program aims at helping businesses to improve their performance by adopting good corporate governance practices and standards.

This is based on the assumption that improved corporate governance helps businesses attract and retain investment, among other benefits.

At the inaugural ceremony on Wednesday, Swiss ambassador to Ghana, Gerhard Brügger, who spoke on behalf of SECO, reiterated the need for robust corporate governance systems in the growth of businesses.

He pointed out that, in spite of the rapid growth in Ghana as well as the sub-region, governance in both the private and public sector was still a challenge.

"It is obvious that it is not enough to have a good business idea. Investors care deeply about corporate governance, making it a critical factor in investment decisions," the envoy said.

He commended Ghana for leading in many aspects of political and civil governance, and urged it to take a lead in economic and corporate governance.

"Besides shielding from bad management practices, proper corporate governance structures can prove to be invaluable sources of inspiration and support for business development.

"SECO is committed to promoting sustainable growth and reducing poverty and inequality by inducing favorable conditions for new and productive job creation," the ambassador said.

Brügger said SECO was therefore working with IFC, the private sector wing of the World Bank Group, as a strategic partner in Africa to institute robust corporate governance systems among Ghana businesses for economic growth.

"The corporate governance principles of integrity, transparency, accountability, fairness, probity and responsibility are the main drivers of most corporate governance codes and frameworks that have been adopted internationally," Millison Narh, first Deputy Governor, Bank of Ghana, noted.

"The crisis brings into sharp focus the need for banks to improve their corporate governance practices and for bank supervisors to ensure that sound corporate governance principles are thoroughly embedded and consistently implemented by banks," Narh noted.

He reminded the banks to ensure sound corporate governance practices and act as a check on mismanagement to infuse discipline in the decision making process at the board level.

Ronke Ogunsulire, IFC Country Manager for Ghana, said "good corporate governance policies and practices help businesses lower their capital costs and become competitive, profitable and attractive for investors".

"Partnering with SECO, IFC will help Ghanaian businesses develop and implement good governance policies to improve their operational efficiency, create more jobs in Ghana and grow the economy in the long-term," Ogunsulire stated.

Adu Anane-Antwi, Director General of the Securities and Exchange Commission (SEC), also underscored the need for businesses to adopt and apply sound corporate governance policies and processes to improve their productivity. Endi