Although it is not a direct financial tool, good corporate governance has shown to be a driver for a successful business. It is a critical component in a business’ toolkit in building a foundation of trust, integrity, and accountability between the entity and its key stakeholders. Good corporate governance reveals the entity’s ability to operate as a sustainable business, and what better time to be of this standing as a business than during a crisis.
Research shows that more than 84% of global institutional investors are willing to pay a premium for shares of a well-governed company, in comparison to a poorly governed business with a similar financial record. This is because investors highly value the protection of their reputation, as well as that of their hard-earned money.
Also equally important in a business, is strong leadership. The COVID-19 pandemic has threatened not only the lives of people, but it has also brought about chaos and uncertainty in the livelihoods of many more. It has been the case the world over, that lockdown has resulted in stagnated economic activity, ensuing business and supply chain disruptions and consequentially, job losses. Strong leadership is vital to the sustainability of any organisation, but more especially during this pandemic. Leadership that is willing to, and has the ability to adapt to the ever-evolving conditions of the market and assist in better managing risks.
In the current market conditions brought about by COVID-19, leadership teams should re-evaluate their existing risk management measures, develop the necessary policies, and be willing take timely and decisive action, to adapt to the market and survive. The actions taken during this time will determine the public perception of the company in the future. Explicit, decisive action in a time of crisis, shows that capable, forward-thinking leaders run the organisation, and these are the attributes that investors look for.
The financial services sector has continued to provide inventive solutions by taking charge and leading customers on to the path of the Fourth Industrial Revolution (4IR) by making products and services which utilize numerous technologies. It is only with robust leadership and decisive action that there can be a change that will drive innovation and ensure growth in the new post-pandemic environment.
To fulfil the role of contributing to rebuilding Botswana’s economy, we all need to be willing to get out of our comfort zone and look at the world with renewed vigour. We should participate in proactive engagements to combat this climate of uncertainty and elevate Botswana. Let us continue to support SMEs.
About Atlas Mara
Atlas Mara (www.atlasmara.com) was listed on the main market of the London Stock Exchange in December 2013. Atlas Mara's strategy is to create Sub-Saharan Africa's premier financial services institution through a combination of its experience, expertise and access to capital, liquidity and funding.
Its goals are to combine the best of global institutional knowledge with extensive local insights and to support economic growth and financial inclusion in the countries in which it operates.
BancABC Botswana is a part of the Atlas Mara Group. Our vision is to be the trusted local bank in Botswana, offering world-class solutions and building profitable, lifelong customer relationships through the provision of a wide range of innovative financial products and services to benefit all stakeholders. BancABC in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.
The group offers a diverse range of products in corporate banking, treasury services, retail & SME banking, asset management and stockbroking.