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Corporate Governance Survey for Namibia
2016, 3rd Edition
It is with great pleasure that we present the findings of our 3rd edition of the Deloitte Corporate Governance Survey for Namibia. The aim of the survey is to collate and analyse data regarding the policies, procedures and practices followed by Namibian entities to adhere to corporate governance principles.
It should be noted that this survey covers both public and private entities and our aim is for this report to be a catalyst for contemplation, in-depth discussions and an improvement in governance practices in the country.
Our foreword and conclusion are included on this page; you can download a full copy of the report.
Effective governance frameworks, structures and practices are paramount to ensure that the organisation delivers on its strategic mandate and behaves like a responsible corporate citizen. Key ingredients include a balanced and effective board of directors providing the necessary guidance and oversight to management teams, as well as ethical leadership and codes of conduct that encompass honesty, transparency and fairness.
The NamCode was introduced in Namibia in 2014, with the main objective to respond to the need for a Namibian specific code that addresses international corporate governance best practice within the Namibian context. The NamCode sets out relevant principles, and requires application on an “apply or explain” basis. The main overarching categories can be summed up as follows:
- Ethical leadership and corporate citizenship
- Boards and directors
- Audit Committees
- The Governance of risk
- The Governance of Information technology
- Compliance with laws, codes, rules and standards
- Internal audit
- Governing stakeholder relationships
- Integrated reporting and disclosure
We are pleased to include in this report the responses we received from both the private and public sector in Namibia. Electronic survey questionnaires were completed by respondents in the different entities we surveyed, and included responses from:
- Chief Executive Officers and Managing Directors
- Chief Financial Officers
- Heads of Governance and Compliance
Consistent with the previous editions, given the qualitative and quantitative nature of the responses, we have taken care to ensure that information presented in our survey is, to the greatest extent possible, anonymous and a fair reflection of the responses received.
Once again, we would like to extend our appreciation to the respondents for the time and enthusiasm devoted to providing comprehensive responses.
We believe that Namibia is a prime investment destination and provides excellent economic growth potential. Our hope is that this report will contribute the adoption, implementation and application of good corporate governance practices, and that this will lead to not only greater economic growth, but also socially and environmentally responsible practices
The results of the 3rd edition of the Deloitte Corporate Governance Survey for Namibia compared to earlier Reports indicate that that there is much greater appreciation and awareness of the benefits of good corporate governance in the Namibian market. We are particularly pleased to see the marked improvement in governance in both the private and public sectors. This change in behaviour amongst companies can be mainly attributed to the publication of the NamCode. As evidenced by the results of this survey, this localised governance code, which aligns to international best practice while taking into consideration local conditions, clearly had a significant impact on the implementation of best practice principles. It will be interesting to see how and if these measures impact on the performance of businesses in the private and public sector within the financial, social and environmental context. We believe the introduction of the NamCode in its current form is appropriate for the Namibian context, as it allows entities in both the public and private sphere to appreciate the benefits of good corporate governance. As the Namibian market matures with respect to the effective application of the good corporate governance principles, a move to a more principled based approach (as encompassed in the newly launched King IV Code) may be considered.
We would like to thank all the respondents to our survey for their time and efforts in providing us with valuable insight into the Namibian corporate governance landscape. We trust that this report will contribute to the continued improvement on corporate governance practices in Namibia.