Cairo, Egypt April 26, 2010
—Raising standards of corporate governance can help companies in the Middle East and North Africa improve financial performance and increase their access to finance, according to a report launched today by IFC, a member of the World Bank Group.
Corporate Governance Success Stories,
one of the first reports of its kind in the region, highlights the measures taken by 11 companies to improve board effectiveness, management control, and other corporate governance practices.
Nearly all companies reported that the improvements in corporate governance had a strong or substantial impact on their ability to access finance, with estimates ranging from $8 million to more than $1 billion over the past two years. In addition, most companies highlighted the impact of good corporate governance on their reputation and sustainability.
“Our reputation has benefitted substantially from the changes we have made to our corporate governance practices. We now have companies calling us asking how they can make similar changes,” said Rania Farouk of Egytrans.
Several companies, such as Bank Audi, Kashf and Microfund for Women, also said good corporate governance helped them manage the impact of the recent global financial crisis.
“Corporate governance has gained a lot of attention, partially because of the global financial crisis. Companies in the Middle East and North Africa are beginning to recognize that improving corporate governance can have a significant positive impact on their business,” said Chris Razook, IFC Program Manager for Corporate Governance.
IFC Advisory Services works with both private and public sector entities across the Middle East and North Africa to strengthen corporate governance practices. Improving corporate governance practices allows companies to have better access to financing, helping them expand and create jobs.
In MENA, IFC currently operates country-specific corporate governance programs in Jordan, Pakistan, and Yemen. IFC has also previously carried out activities in countries including Egypt, Lebanon, Morocco, Saudi Arabia, the United Arab Emirates, and the West Bank and Gaza.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
