A Framework of Corporate Governance Systems for the Performance of State-Owned Enterprises in Zimbabwe

Abstract

Poor governance practices have remained entrenched in both the public and private sectors despite the adoption of various legal frameworks and institutional measures aimed at promoting corporate governance practices. A close analysis of the focus of many studies conducted to 
date on corporate governance, reveal the existence of a gap in the search for an institutional framework of corporate governance systems for the state-owned enterprises in Zimbabwe. Poor governance has continued to haunt SOEs leading to poor service delivery. Therefore, this study using qualitative content analysis sought to develop an institutional framework of corporate governance systems for the performance of state-owned enterprises in Zimbabwe. Evidence from the study indicates that poor corporate governance in SOEs has been driven by such factors as political interference, lack of political will, poor rules and regulation in the running of SOEs among a host of other challenges. Basically, the institutional framework of corporate governance systems for the performance of state-owned enterprises in Zimbabwe that maybe adopted should comprise of the following: engage stakeholders so that they can have by-in on policies, scan and learn from best practices from elsewhere, rationalise SOEs, listing of SOEs on Public Exchanges, review and improve policy and legislation, capacity building, enhance political will, invest in corporate governance research, establish independent boards and the unbundling monoliths and disposing non-essential SOE’s and strengthen rule or law. However, 
there is still need for studies on how these can be harnessed for promoting good corporate governance in SOEs.