Harmonisation of corporate governance laws in the Southern African Development Community

Abstract

In terms of the SADC Regional Indicative Strategic Development Plan (RISDP), the main objective of the community is to achieve a monetary union through the creation of a regional central bank by 2016 and adoption of a single currency by 2018 in a systematic and progressive manner. The envisaged monetary union in the SADC is premised on a number of economic and financial regulations aimed at stimulating efforts by member states to achieve deeper forms of regional integration. The latter imperatives include a harmonised payment system as well as a corporate governance system among others. Nonetheless it is surprising how the pace of the process has been very subpar taking into consideration that it is the year 2015 and there has been no clear carved out legislation in any form which deals with the aspect of corporate governance raises concerns. This study serves as not only a reminder but also gives guidelines to taking progressive steps towards harmonised systems of law to ensure the efficient running of companies in SADC. This study is predicated upon other successful systems and the lessons that SADC could make use of as examples in creating a robust system of laws to ensure good corporate governance and in the long run the fulfilment of the concept of a monetary union.