The Ghana National Chamber of Commerce has moved to strengthen the governance structure of local companies especially Small and Medium Scale Enterprises (SMEs).
Citing the factors that led to the collapse of some banks, the Ghana National Chamber of Commerce said there is a need to build the capacity of SME operators to ensure that they have the skill and knowledge to grow their businesses.
According to statistics from the Business Development Ministry, 80 percent of SMEs do not survive after the first 5 years due to bad corporate governance.
The Chamber has therefore signed a corporation agreement with the International Finance Corporation (IFC) to encourage SME’s adopt sound corporate governance practices as a means to improve performance increases access to finance and foster sustained growth.
“It is my expectation that, through this Corporate governance capacity building programme, the business community will be equipped with relevant knowledge and skills to strengthen their governance framework and improve their overall governance practices to sustain business growth and performance,” said Nana Dr. Appiagyei Dankawoso I, President of the Ghana National Chamber of Commerce and Industry.
Per the agreement, the International Finance Corporation, which is the private sector Investment and advisory wing of the World Bank will provide training and advisory services to members of the Ghana National Chamber of Commerce. It will also organise workshops, seminars, and conferences for the companies and track their performance after those programmes.
The institution is hopeful the new arrangement will help turn around the fortunes of SMEs in the country.
“Corporate governance is not just a concept for big companies, multinationals or banks, it is a set of principles and practice that should be at the core of each and every organization, institution or company, no matter its size, sector or location,” Moez Miaoui, Head of Corporate Governance Advisory for West Africa at the IFC noted.