Why good governance is Africa’s greatest and most underused asset

For years, companies, investors, and policymakers have focused on the environmental and social pillars of ESG. These are important.

However, the third pillar, governance, hasn’t received the same attention. For Africa, this gap represents a major opportunity. Good governance is the anchor that holds everything else in place. Without transparency, functional institutions, and accountability, even the best environmental or social initiatives struggle.

Strong governance is also the clearest signal to investors that their capital will be protected. It shows that boards challenge management, procurement is ethical, finances are reliable, and risk is taken seriously.

The consequences of weak governance become apparent quickly. Investors hesitate. Employees lose confidence. Brands weaken.

Many ESG commitments fail, not because leaders lack ambition, but because the systems meant to support those ambitions are fragile. Policies remain on paper. Boards meet but rarely probe. Supply chains grow without the controls that keep them credible.

Africa’s potential is enormous, yet still perceived by many investors as constrained by shortcomings of governance. But this can be reversed. If governments and businesses treat governance as a strategic asset rather than a compliance exercise, the gains could be transformative.

Governance is not an obstacle to development. In fact, it is the key to accelerating it. We have proof of this.

At Kenya Airways, for instance, a greater focus on governance has played a key role in improving operational discipline and rebuilding confidence. Measures such as strengthened board oversight, tighter conflict-of-interest controls, and a more responsive whistleblower system have helped reinforce accountability.

In 2024, for example, 76 percent of governance concerns (from fraud to discrimination) were reported through formal channels and acted upon. That reflects confidence in the institution, not fear of it. These steps supported operational improvements and made it easier to build trust with partners across the globe.

The wider lesson is not about any single company. It is that when African institutions make governance central to how they operate, it becomes easier to attract investment, talent, and partnerships. Investors are looking for systems that work, for controls that prevent risk, and for leadership that enforces accountability.

For Africa to turn governance into a competitive edge, it must build boards that are independent and empowered to guide strategy. Independence is not a box-ticking exercise. It determines whether a board can challenge decisions, protect shareholders, and drive long-term value.

The writer is a company secretary & director of legal, risk and compliance at Kenya Airways