Corporate governance code on the way in Zimbabwe

Progress has been observed in the bid to establish a new code of corporate governance for Zimbabwe.

According to government newspaper the Herald, a steering committee headed by PricewaterhouseCoopers senior partner Tinashe Rwodzi is now in place to oversee the discussion of the code.

The move to publish new governance guidelines for businesses in the African nation has been spearheaded by the Zimbabwe Leadership Forum and the Institute of Directors in Zimbabwe (IoDZ).

David Mutambara, chairman of the IoDZ, said the document will help to rebuild the country's economy.

However, he also suggested the final draft could take some time to emerge, as the process will involve a number of high-level consultations with government officials and private leader leaders.

"Economic development hinges on corporate governance and there is a need of a national code that is accepted and adopted by all stakeholders," Mr Mutambara commented.

The King III governance code was introduced in neighbouring South Africa in March and includes guidelines for the disclosure of individual executive compensation packages, as well as stating that shareholders should approve remuneration policies.