Corporate Governance Success Stories

Abstract

This report summarizes the experiences
 of 19 companies from across the region. Each of the case
 studies highlights the key corporate governance changes made
 and the positive impacts that resulted, as reported by the
 company. The companies represent various countries, sectors,
 types, and sizes. All of the companies featured are former
 IFC Advisory Services clients. Some are IFC Investment
 clients as well. IFC conducted an in-depth corporate
 governance assessment for each of these companies using
 IFC’s Corporate Governance Methodology. The assessments
 resulted in specific recommendations on ways to improve each
 company’s governance framework and identified implementation
 plans. The assessments were conducted at various points over
 the past few years. The time taken to implement changes and
 realize benefits varied. However, all companies reported
 that governance changes are continuous and the corresponding
 benefits manifest themselves in different forms over time.
 This report provides examples of companies in various stages
 of change – from recent changes (e.g., Medgulf) to ongoing,
 longer-term changes (e.g., Bank Audi). This report also
 includes testimony from three MENA private equity firms (all
 IFC investment clients). Collectively, these firms have
 worked with 72 investee companies (past and present funds).
 Selected based on their association with IFC and their
 willingness to share their insight and experiences, these
 firms offer a valuable window into the importance of
 corporate governance from an investor’s perspective. The
 material in this report is based on feedback gathered
 through individual interviews with each organization
 featured, resulting in well-considered responses. The
 achievements highlighted are all the more notable given that
 the interviews and information gathering process took place
 in in late 2009 (first edition) and 2013 (for current
 edition), when the region was still under the stress of the crisis.