Corporate government practices in Tanzania: an exploratory study

As the global debate on corporate governance continues, Tanzania continues to review its framework for corporate governance to keep pace with the fast changing capital market environment. Following an East African Technical Workshop and Forum on Corporate Governance held in Arusha 12 - 15thApril 2000, a Steering Committee on Corporate Governance in Tanzania was established. The Committee is chaired by Mr. Ibrahim Kaduma. Other members of the Committee are; Col. Simbakalia, Mr. Msita, Mr. Coleman Ngalo, Mrs. N. Massinda, Mr. Henry Mapolu and Dr. Hamisi Kibola. While such governmental measures are important, regulations alone will not enhance the standard of corporate governance. Regulators require the active involvement of market participants such as investors, professionals and businesses. This corporate governance survey report tried to establish if Tanzania businesses better understand the expectations of their corporate investors, which includes, inter alia, enhanced disclosures in the financial statements and annual reports. Businesses are challenged to consider these expectations, and to actively evaluate how these can be effectively met, so that they are better positioned when competing for funds in the global capital markets. Secondly, this report provides an assessment of the current local corporate governance framework from the investors' perspective. Businesses should continue to strive to inculcate corporate governance best practices in all aspects of their operations, and transparency in both operations and disclosures appear to be a fundamental cornerstone of sound corporate governance.