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FBC Holdings was named the Overall Best Corporate Governance Practices listed company at the Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ) ‘s annual Excellence in Corporate Governance Awards held last Thursday evening at the Rainbow Towers Hotel in Harare.
The first runner-up for the award was CBZ Holdings followed by Econet Wireless Zimbabwe. FBC Bank was the overall banking institution winner, followed by CABS and CBZ Bank. Old Mutual was the overall insurance companies sector winner, with First Mutual Life Assurance in second place followed by Fidelity Life Assurance.
The Deposit Protection Corporation was the winner of the State Enterprises and Parastatals Award. The first runner-up was the Zimbabwe Energy Regulatory Authority (ZERA). The second runner-up was the Zimbabwe Revenue Authority (ZIMRA).
CGAIZ has been holding the Excellence in Corporate Governance Awards since 2013 as a way of promoting good corporate governance.
First Capital Bank was the winner of the Best Governance Practices Award in the banking sector. FBC Bank was the first runner-up for this award, while CBZ was the second runner-up.
The winner of the Best Risk Management Award for the banking sector was FBC Bank. The first runner-up was CABS. CBZ Bank was the second runner-up.
Padenga Holdings won the Best Shareholder Treatment award in the listed companies category. FBC Holdings won the Stakeholder Practices and Sustainability Reporting Award in this category and CBZ won the Best Board Practices award.
Guest of honour at the awards ceremony was the Permanent Secretary in the Ministry of Justice, Legal and Parliamentary Affairs, Mrs. Vimbai Nyemba.
Addressing guests and award winners at the ceremony, Mrs Nyemba said good corporate governance transcends policies, procedures, and regulations, adding that it is mainly about the fundamental values a company works with and the relationship it forges with its stakeholders, customers, and the community.
“The relentless pursuit of knowledge and unwavering efforts are driving us towards a brighter future characterised by transparency, integrity, and ethical practices.
“We must acknowledge the significant progress you have made in governance and accounting in our country which has been possible due to tireless work and countless hours of dedication.
“This event should be a turning point for us to introspect and grow, pushing us to aim higher by sharing knowledge, working together, and committing to ethical governance.
“We can create a future where businesses prosper, our society flourishes and trust is never compromised,” she added.
Mrs Nyemba went on to say corporate governance is a culture of good ethics that requires the collective effort of the government, regulators, professional bodies, and the investing public.
“Business leaders play an essential role in establishing good corporate governance practices in their daily operations, board room decisions, and interactions with investors.
“It is not only about complying with legal requirements but also doing what is ethically right and beneficial for their businesses. This in turn will cultivate a culture of good corporate governance and ethics throughout the country.
“The second republic is committed to advancing corporate governance in line with Zimbabwe’s Vision 2030 agenda and the National Development Strategy One,” she said.
She added that strong and effective corporate governance is fundamental to building trust and ensuring the success, resilience, and sustainable growth of corporations.
“Good corporate governance is a critical factor in achieving sustainable economic development. It not only instills investor confidence but helps reduce capital costs, fosters the integrity of capital markets, and plays a significant role in eradicating corruption in corporates.
“Institutions that govern fairly, reliably, and accountably contribute to building trust among people, businesses, and government. As the government, we recognise the significance of transparency and accountability in achieving our Vision 2030.
“We are committed to putting structures in place that enhance these values which are essential drivers towards realising our national aspirations,” she added.
Mrs Nyemba also pointed out that as the world’s demands continue to change, it is essential to evolve to meet these challenges.
“We encourage Zimbabwean companies to adopt artificial intelligence (AI) to improve corporate governance. AI can enhance data analysis, risk management, compliance monitoring, decision support, stakeholder engagement, cybersecurity, and automation of routine tasks.
“Efficient use of AI in the framework of corporate governance can improve transparency, efficiency, and risk management,” she added.
Mrs Nyemba said, however, that ethical and responsible governance practices must be considered while integrating AI.
Presenting the adjudicators’ report, CGIAZ chief executive and secretary Dr Lovemore Gomera said the adjudicators looked at disclosures of corporate governance practices, sustainability information, shareholder communication, and other related information disclosed by participating entities.
“The adjudicators’ decisions were therefore solely based on corporate governance and related disclosures and not financial results or performance. All information outside the public domain was not included in the review process,” he noted.
Among the major highlights observed from the adjudication process, Dr. Gomera said not much progress has been realised towards achieving gender diversity as indicated by the lack of gender balance in the composition of boards.
Some institutions continued to not disclose detailed profiles of directors to enable stakeholders to appreciate such attributes as qualifications, skills, experience, age, and other directorships.
He however said there was an improvement on disclosures of dividend policies when compared to non-disclosures in the previous year.
