Corporate Governance in Public Entities

Zimbabwe is faced with the challenge of restructuring for greater efficiency and creating an investment-friendly environment; therefore, practicing good corporate governance in public entities is crucial for economic growth. As corporate organisations, public entities need to be managed effectively by a competent board, which can construct and implement strategies that are in the best interests of the entity and all stakeholders. Similarly, the Zimbabwean corporate governance framework for state enterprises and public entities defines corporate governance as 'a set of processes, customs, value codes, policies, laws and structures governing the way a corporation is directed, controlled and held accountable'. Corporate governance has thus become a pivotal issue, in the wake of failures of high profile international corporations, the demand for transparency and accountability in the utilisation of shareholders' funds, and the growing awareness of the need for good corporate practice to attract investment capital and achieve strategic goals over the long-term.