Imagine, if you will, a grand durbar. It’s a day of festivity, drumming, and a sprinkle of pomp. The elders, clad in rich kente, sit on their stools, watching as a group of children — bless their hearts — attempt to sing a dirge. Alas, their voices crack, and they stumble over the words. The crowd watches in a mixture of amusement and confusion.
Such is the reality of many **State-Owned Enterprise (SOE)** boards in Africa today. A playground for the politically naive, a sandbox for party loyalists trying their hand at governance. The tragedy? SOE boards are not children’s choir practice. They are, or should be, the custodians of our public wealth — the funeral of a great chief, as it were. And to allow inexperienced hands to handle such weighty matters is to court disaster.
So it was, on a day fraught with significance, that Yaw Nsarkoh, a fellow of the Institute of Directors, delivered a speech at the **10th Anniversary of the Africa Corporate Governance Network (ACGN)**. His message was clear: “Directors, get up, stand up for your rights!”
Ah, but dear reader, do directors in Africa even know their rights? More critically, are they willing to fight for them?
The Dance of Governance: SOEs and the Problem of Patronage
Nsarkoh’s address, laced with the sharp wit of a man who knows his onions, did not shy away from the bitter truth. Many SOE boards, he pointed out, are *not* populated by the best minds, the most experienced professionals, or the brightest of talents. No, they are, more often than not, the reward for political loyalty.
You see, the African SOE board is often an extended arm of the political party, an overflow room for party faithful who failed to get into Parliament or were unlucky enough to miss out on a ministerial appointment. What better way to reward their services than by planting them on boards where, armed with little more than a party card and sheer ambition, they can attempt to steer the ship of state resources?
As the saying goes, “Garbage in, garbage out.”
Nsarkoh didn’t mince words when he compared the current state of affairs to a Santa Claus democracy: “Politicians constantly raid and loot our commonwealth, only to return a small fraction of it to us as gifts at election time.”
The result? Boards that are, by design, dysfunctional. “If you want a house built properly,” Nsarkoh seemed to be saying, “you don’t call a carpenter who just learned the trade last night.”
Independence, Where Art Thou?
And yet, it’s not just about who sits on the board. It’s about what they are allowed to do — or, more aptly, *not* allowed to do.
Nsarkoh highlighted the tension between **independent directors** and their political overseers, the latter often expecting the former to be little more than lapdogs. SOE directors are supposed to be independent voices of reason, but too often they are relegated to rubber stamps for the whims of political actors.
Imagine, if you will, a director daring to speak truth to power. Perhaps they raise a hand in a board meeting, suggesting that, just maybe, the SOE should prioritize efficiency over political cronyism. The result? A quick summons to the “big man’s” office, where they are reminded, in no uncertain terms, of the delicate balance between survival and integrity.
Independence, dear reader, is a wonderful thing in theory. In practice, it is as rare as an honest politician.
The Neoliberal Trap
Then there’s the neoliberal model — that glittering mirage of free markets and minimal state interference. The problem, Nsarkoh argued, is that this model has been foisted upon African states with disastrous consequences. Neoliberalism, in its insistence on shareholder primacy, forgets that SOEs are not private corporations. They exist to serve the public, not just to turn a profit.
But in the current climate, the pressure to satisfy political benefactors often leads to a conflict of interests. Boards are supposed to serve the broader society, yet they often end up answering to shadowy political forces.
A Light at the End of the Tunnel?
Nsarkoh is not one to wallow in despair. He offered practical solutions — the kind that make sense in a world where merit still means something. Advertise board positions publicly. Let recruitment be transparent. Select directors based on competence, not political loyalty. And, above all, train them. Governance, after all, is not something you pick up on the job. It requires constant learning, reflection, and, dare I say it, humility.
But, of course, such ideas will face stiff resistance. Why? Because, as Machiavelli once remarked, those who benefit from the old ways will fight tooth and nail to maintain the status quo. And they are often far more motivated than those who stand to gain from change.
Courage, Directors! Courage!
As Nsarkoh concluded, his message was one of hope — but also a challenge. Directors must find the courage to stand up for what is right. They must resist the temptation to go along to get along. They must push back against the forces that would have them be mere puppets.
After all, the future of Africa depends on it.
And so, dear reader, as the anniversary celebrations continue and the speeches fade into memory, let us remember this: Governance is not a game for the faint of heart. It is a serious business, and those entrusted with it must rise to the occasion. For, as Nsarkoh rightly pointed out, when boards fail, it is the people who suffer. And too many have suffered for far too long.
In the words of the great Bob Marley, “Get up, stand up, don’t give up the fight!”
*This keynote speech was delivered by Yaw Nsarkoh at the Africa Corporate Governance Network’s 10th Anniversary and Directors’ Week Celebration on Thursday, 16th November 2023.*
