Africa’s economic struggles persist despite efforts to attract foreign investment, largely due to weak corporate governance in the public sector. Unlike private businesses, where accountability drives performance, many African governments lack mechanisms for strategy, risk management, and transparency. Public offices are often seen as tools for political patronage rather than governance, fostering corruption and “performative democracy” devoid of a genuine social contract. This approach undermines citizen welfare, weakens institutions, and creates an unfavorable environment for sustainable business growth. Analysts argue that adopting corporate governance principles could enhance governments’ legitimacy with their citizens, strengthen public institutions, and improve business environments by creating stable regulatory frameworks that attract investments. By applying these principles to the public sector, African leaders can break the cycle of poor economic performance and state fragility.
Source: SEMAFOR