FTInsight April/May 2016
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In the aftermath of the 2008 global financial crisis, the pitfalls of failing to promote sound corporate governance<br />
became shockingly clear. Increasingly, companies must be able to respond to fast-changing conditions, and to<br />
meet the needs of investors and partners in a timely and transparent manner.<br />
Businesses and banks in Sierra Leone are no exception. The country cannot fully develop by counting entirely on<br />
its natural resources, stunning scenery, and young and growing population of entrepreneurs, as valuable as these<br />
assets are.<br />
Good corporate governance – good governance in general –<br />
is an essential ingredient that every bank or business needs<br />
in order to secure trust, conf idence, and investment from its<br />
partners. Conversely, a weak corporate governance framework<br />
will severely impede all stages of the investment process and<br />
hence the economy’s overall prospects to build a strong private<br />
sector basis for economic growth. Poor corporate governance<br />
will damage the capacity to mobilise savings, it will hinder<br />
eff icient allocation of f inancial resources, and it will prevent<br />
proper monitoring of corporate assets.<br />
Perhaps most importantly, corporate governance is about delivering long-term sustainability. One of the<br />
most salient relationships in economic life is the positive link between investment and economic growth.<br />
In this regard, any economic strategy that looks 20, 10, or even five years into the future must consider the<br />
fundamental role that corporate governance will play in creating an enabling environment for that relationship<br />
to flourish.<br />
FT<br />
Insight<br />
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For IFC, which is the largest global development institution focused exclusively on the private sector in<br />
developing countries, corporate governance is part of broader strategy to support growth in Sierra Leone. IFC<br />
also invests directly in Sierra Leone, and has supported business reform efforts, gender initiatives, and a wide<br />
ranging World Bank Group response to the Ebola crisis.<br />
Going forward, IFC will remain a strong partner with Sierra Leone, helping the country realise its ‘Agenda for<br />
Prosperity’. We’re confident that the public and private sector institutions will adapt good corporate governance<br />
practices that have the potential to make them highly attractive to investors and make Sierra Leone the next<br />
investment destination in Africa.<br />
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