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The Governance of State-Owned Enterprises in Africa: an analysis of selected cases

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  • Misheck Mutize
  • Ejigayhu Tefera

Abstract

Whilst some literature is of the view that; it is nearly impossible to cultivate good corporate governance culture in state-owned enterprises (SOEs), others believe that new strategies of implementing corporate governance systems together with political will can deliver SOEs out of their efficiency doldrums. This paper presents a scientific analysis of the contentious view on the possibility of creating efficient governance mechanisms in SOEs, explores the effective cost for governance failures in SOEs in Kenya, Zimbabwe, South Africa and Ethiopia. The paper makes conclusions and recommendation that the determinant factor to the success of SOEs in African countries is underpinned on the response of central government to the challenges of SOEs. Structural reforms, good governance, clear objectives and efficiency requires governments to take a decisive position. As a lasting remedial action, knowing which entities and when to offload them through privatisation, is an option in addressing the governance challenges in African SOEs. For strategic SOEs, the paper recommends that governments should consider listing them on public stock exchanges.

Suggested Citation

  • Misheck Mutize & Ejigayhu Tefera, 2020. "The Governance of State-Owned Enterprises in Africa: an analysis of selected cases," Journal of Economics and Behavioral Studies, AMH International, vol. 12(2), pages 9-16.
    • Handle: RePEc:rnd:arjebs:v:12:y:2020:i:2:p:9-16
    DOI: 10.22610/jebs.v12i2(J).2992
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    References listed on IDEAS

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    1. Ejis, 2013. "Table of Contents," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    2. Estrin, Saul & Pelletier, Adeline, 2018. "Privatization in developing countries: what are the lessons of recent experience?," LSE Research Online Documents on Economics 87348, London School of Economics and Political Science, LSE Library.
    3. Saul Estrin & Adeline Pelletier, 2018. "Privatization in Developing Countries: What Are the Lessons of Recent Experience?," The World Bank Research Observer, World Bank, vol. 33(1), pages 65-102.
    4. W. Richard Frederick, 2011. "Enhancing the Role of the Boards of Directors of State-Owned Enterprises," OECD Corporate Governance Working Papers 2, OECD Publishing.
    5. Ejis, 2013. "Table of Contents," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    6. International Monetary Fund, 2019. "Senegal: Fiscal Transparency Evaluation," IMF Staff Country Reports 2019/034, International Monetary Fund.
    7. Sara Sultan Balbuena, 2014. "State-owned Enterprises in Southern Africa: A Stocktaking of Reforms and Challenges," OECD Corporate Governance Working Papers 13, OECD Publishing.
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    1. Mchavi Nyiko D. & Ngwakwe Collins C., 2025. "Evaluating the Role of ABM in the Financial Performance of SOES in South Africa," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 16(1), pages 36-57.

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