IFC supports forum on sustainability of family owned businesses in Senegal
International Finance Corporation has collaborated with the Senegalese Institute of Administrators (ISA), to host the Administrator’s Forum, with a focus on the sustainability of family-owned businesses.
The event is part of IFC’s Corporate Governance Program. Family-owned businesses are the most dominant form of enterprises in the world, but face specific governance issues, notably in terms of succession. Good governance practices would allow them to improve their performance and sustainability.
Corporate Governance remains scarcely known and applied in West Africa. This is even more the case in family-owned businesses, which operate in insufficiently regulated sectors. In addition, those family-owned businesses often lack the expertise and knowledge in governance, planning, succession or various issues related to family governance. Those factors are important, as studies show that less than 5% of family-owned businesses survive beyond the fourth generation.
The Administrator’s Forum is an opportunity to discuss major challenges related to Corporate Governance in Senegal and allows business owners and other key stakeholders to share experiences and knowledge based on recent global trends.
Faheen Allibhoy, IFC Regional Representative, said “This Forum offers the opportunity to raise awareness of entrepreneurs and family business owners on specific governance-related challenges they need to address”.
She added “IFC works to promote good practice in family governance et offers a unique experience in this field. IFC invests in and works with family-owned business across the world. We are aware how important it is for family-owned business to implement good governance practices in order to sustain their activity".
Alioune Ndour Diouf, Chairman of ISA, said “Our Institute’s main mission is to promote good practice in Corporate Governance. Given the predominance of family-owned businesses in Senegal’s economy, it is important to inform such businesses of the challenges and requirements of family governance in order to raise their awareness on the issue and to secure their buy-in on how to address them”.
IFC’s Corporate Governance program works to improve African’s businesses’ performance and increase markets’ capacity to attract and retain investments. The program is supported by the Swiss State Secretariat for Economy (SECO), which works to promote good practice in Corporate Governance.