Corporate Governance Status

July 2005

Corporate Governance Developments in Botswana

Corporate governance initiatives in Botswana are being championed through the DIoB, which has been affiliated to the Institute of Directors in Southern Africa (IoDSA), as a member early in 2001.

The DIoB was officially launched in 2002 as an initiative by the private sector, government and semi-government (parastatals) to promote the ideals of world class governance in all companies and in particular by adopting the standards as pronounced by Cadbury and the King Report. The DIoB is responsible for monitoring the status of governance in all sectors in the country including the government.

DIoB's membership boasts a number of senior executives in both the private and public sectors, thus facilitating an integrated awareness of these objectives and associated involvement.

DIoB's objectives include:

(a) encourage sound corporate governance and to promote business ethics and best practices;

(b) establish an information centre and/or service for the business community and to provide a range of business and individual services for members;

(c) promote the principles and practice of responsible business leadership as defined in Company publications and to keep members well informed about the economic and regulatory issues affecting business;

(d) raise the professional standards of directors and help them attain high levels of expertise and effectiveness by improving their knowledge and skills through courses, programmes and workshops;

(e) help to ensure that government establishes an economic and regulatory environment in which business can flourish, expand and compete both nationally and internationally;

(f) to develop a network of experienced and knowledgeable businesspersons;

(g) to offer a board appointment service in terms of providing a pool of qualified directors from whom companies can draw from and to advise on board appointments as and when necessary; and

(h) to encourage triple bottom-line reporting.

With a long-term strategy in mind, the DIoB is working with an arm of government and a local training institution to produce a training programme for directors in the country. DIoB training programmes also target State-owned enterprises, especially in view of the country's proposed privatisation programme.

As with a number of other surrounding Southern African countries, the work of the King Committee in South Africa and its report on corporate governance is for the most part the benchmark in Botswana.

Source: Pan African Consultative Forum on Corporate Governance