Weak corporate governance frameworks reduce investor confidence

The recently elected president of the Institute of Chartered Secretaries and Administrators in Zimbabwe, Mr Glovah Ngoni Madzima, says weak corporate governance frameworks reduce investor confidence. Good corporate governance practices, however, promote sustainable economic growth.

Mr Madzima, who is the finance director and company secretary of CarnauldMetalBox (Zimbabwe) Limited, a wholly owned subsidiary of Nampak Limited and listed on the Johannesburg Stock Exchange, was elected president at the institute's recent annual general meeting at Dzidzo House in Harare.

People's Own Saving Bank risk manager and compliance officer Siphiti Nkomo and former distribution director for Cairns Foods Richard Summers were elected vice presidents.

"Weak corporate governance frameworks reduce investor confidence and can discourage outside investment. Embracing the world's best business practices should help businesses achieve sustainable growth and profitability," Mr Madzima said.

"Our management skills are a function of our personal competencies and how we behave. As leaders we must operate at the leading edge, outside our comfort zone," he added.

He said Zimbabwe is poised for sustainable economic growth, which attracts foreign direct investment. There was need, therefore, for good corporate governance practices on the part of any organisation looking for such investment.

"Corporate governance comprises a country's private and public institutions, both formal and informal, which together govern the relationship between the people who manage corporations and all others who invest resources in corporations in the country.

"The institutions of corporate governance serve both to determine what society considers to be acceptable standards of corporate behaviour and to ensure that corporations comply with those standards. Thus the importance of governance professionals cannot be overemphasised," he said.

Mr Madzima added that he intends, during his one-year term as president of the institute, to drive home the message of the importance of practising good corporate governance at the various events that are on the institute's calendar and other public fora.

"Students studying for the Chartered Secretary qualification should embrace the core values of the institute, namely integrity, honesty and accountability, competence and proficiency, quality service and excellence, teamwork and innovativeness at all times.

"They should be firmly grounded on good ethics and integrity and also exemplify excellence in corporate governance." he said.

Mr Madzima had been vice-president of ICSAZ for two years. He has vast experience in tobacco processing and beverages industries, health funders and administrators sector, clothing and furniture retailers and manufacturing industries as well as the manufacturing of metal and plastic packaging industry.

He is a director for several other companies which include a private voluntary organisation called the Little Children of Our Blessed Lady (LCBL) sisters HIV/Aids Project.

He has accumulated a wealth of knowledge in accounting, administration ,secretaryship and general management from working in finance director and company secretary positions for several large organisations, quoted and unquoted on the Zimbabwe Stock Exchange as well as other organisations in the region.

Mr Madzima is a fellow of the Institute of Chartered Secretaries in Zimbabwe, registered public accountant and holds a Master of Business Administration Degree from the University of Zimbabwe.

He has been an active member of the institute for many years, serving on various committees of the institute, including the Marketing and Strategy Committee and Disciplinary Tribunal Committee. He has also served on the institute's Assessment Review panel.

Mr Madzima is married to Coletta and they have five children. During his spare time he enjoys entrepreneurial development projects, squash and jogging.