"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
PRESENTS
BUSINESS COVENANTS AND DECLARATIONS
ON BUSINESS IN AFRICA
A DOCUMENT PREPARED AND DISTRIBUTED BY THE
NEPAD BUSINESS GROUP (SOUTH AFRICA)
LAUNCHED ON THIS SITE - 21 DECEMBER 2003
COURTESY
**********************************
Geoff Rothschild
BUSINESS COVENANTS AND DECLARATIONS ON BUSINESS IN AFRICA
Some 200 companies doing business in Africa signed the Business Endorsement of the New Partnership for Africa’s Development
(NEPAD) at, and immediately after, the African Economic Summit arranged in partnership between the World Economic Forum and the NEPAD Secretariat in Durban, South Africa, between 5 and 7 June 2002.
I enclose a copy of the endorsement we signed at that time. In the statement of endorsement, we noted the purpose of NEPAD in its founding document:
“...to consolidate democracy and sound economic management on the continent. Through the programme, Africa’s leaders are
making a commitment to the African people and the world to work together in rebuilding the continent. It is a pledge to
promote peace and stability, democracy, sound economic management and people-centred development and to hold each
other accountable in terms of the agreements outlined in the programme.”
The business signatories then commented:
“NEPAD’s scope is comprehensive. It commits African governments to provide peace, security and good governance,
develop key physical and social infrastructures, institutional capacity and human capital, and implement effective strategies for sustainable development. It also calls for support from the governments of the developed market economies. To date, the
response has been encouraging: Many OECD states are committing to providing better access to their markets, enhanced debt
relief and strengthened flows of development assistance and foreign direct investment. The result, if NEPAD’s goals are realised, will be Africa’s effective integration into the global economy and great improvements in the welfare of its people.”
The business signatories took the view that success would only be achieved, however, if the partnership between African and OECD governments was extended to include business as well. We took a hard-headed view, limiting ourselves to matters in which we had a direct interest and were in a position to effect directly:
“The private sector has a vital interest in NEPAD’s success and a responsibility to contribute as effectively as possible to ensuring it. Companies and professional service organisations based, or doing business, in Africa, recognise that interest and commit to acting in accordance with it.“
Specifically, they commit to:
“To this end, business will work with the NEPAD Secretariat to develop effective public-private partnerships to support the New Partnership and explore the merits of creating a private, non-profit body to marshal and channel resources for this purpose.”
A NEPAD Business Group was formed to develop effective ways of honouring these commitments. Member firms and institutions,
including the King Commission on Corporate Governance; the JSE Securities Exchange, the South African Chamber of Business, the Industrial Development Corporation, and leading audit and accounting firms including Deloitte & Touche, PriceWaterhouseCoopers and Ernst & Young have contributed their time and expertise in enabling us to develop four documents that translate the commitment we made in Durban, into something more tangible.
We have also benefited from the active interest of the NEPAD Secretariat and the World Economic Forum and the support of
WEF-initiated NEPAD Business Groups established in several other African countries.
The four documents enclosed are the:
The progress made in compiling these documents was reviewed by the Executive Committee of the NEPAD Business Group in several meetings over the past five months and I am pleased to submit them to you today and to ask that you review them urgently and commit your company, firm or institution to support them in practice.
With the cooperation of the World Economic Forum, published the list of companies, professional firms and other
institutions active in Africa that have endorsed and committed to support these principles at the Annual Meeting of the World
Economic Forum, in Davos, in January 2003.
The Executive Committee has benefited from preliminary contributions by the South African Chamber of Business and the Industrial Development Corporation on means to advance partnerships between African governments and African and international business in the different sectors addressed in NEPAD documents and plans to involve all signatories of the covenants and declarations in the development of these proposals in 2003.
Reuel Khoza - Chairman of NEPAD Business Group
2. WHAT ARE THE ORIGINS OF NEPAD?
3. WHY THE NEED FOR NEPAD?
4. WHAT IS THE NEPAD PROGRAMME OF ACTION?
5. WHAT ARE THE NEPAD PRIMARY OBJECTIVES?
6. WHAT ARE THE PRINCIPLES OF NEPAD?
7. WHAT ARE THE ELEMENTS OF THE STRATEGIC FOCUS OF NEPAD?
_ To reduce the risk profile of doing business in Africa;
8. WHAT ARE THE NEPAD PRIORITIES?
9. WHAT ARE THE IMMEDIATE DESIRED OUTCOMES OF NEPAD?
10. WHAT ARE THE ELEMENTS OF THE CURRENT FOCUS OF NEPAD?
11. WHAT DOES THE NEPAD STRUCTURE LOOK LIKE?
The Secretariat is the coordinating and liaison arm of the NEPAD Steering Committee.
NEPAD was announced by the representatives of 15 African countries in Abuja, Nigeria, on 23 October 2001.
NEPAD is directed by an Implementation Committee of Heads of State chaired by President Olusegun Obasanjo
of Nigeria, supported by a Steering Committee and Secretariat, which have been charged with developing and
guiding the implementation of a strategic plan to ensure domestic support in African countries and facilitate
public-private sector partnerships and international commitment.
According to its founding document, the objective of NEPAD is “to consolidate democracy and sound economic
management on the continent. Through the programme, Africa’s leaders are making a commitment to the African
people and the world to work together in rebuilding the continent. It is a pledge to promote peace and stability,
democracy, sound economic management and people-centered development and to hold each other
accountable in terms of the agreements outlined in the programme.”
NEPAD’s scope is comprehensive. It commits African governments to provide peace, security and good
governance, develop key physical and social infrastructures, institutional capacity and human capital, and
implement effective strategies for sustainable development. It also calls for support from the governments of
the developed market economies. To date, the response has been encouraging: many OECD states are committing
to providing better access to their markets, enhanced debt relief and strengthened flows of development
assistance and foreign direct investment. The result, if NEPAD’s goals are realised, will be Africa’s effective
integration into the global economy and great improvements in the welfare of its people.
The private sector has a vital interest in NEPAD’s success and a responsibility to contribute as effectively as
possible to ensuring it. Companies and professional service organisations based, or doing business, in Africa,
recognise that interest and commit to acting in accordance with it.
Specifically, they commit to:
To this end, business will work with the NEPAD Secretariat to develop effective public-private partnerships to
support the New Partnership and explore the merits of creating a private, non-profit body to marshal and channel
resources for this purpose.
BUSINESS ENDORSEMENT OF THE NEW PARTNERSHIP FOR AFRICA’
BUSINESS COVENANT ON CORPORATE GOVERNANCE
The Board of Directors shall:
BUSINESS DECLARATION ON CORPORATE SOCIAL RESPONSIBILITY
Article 1 - Environmental Sustainability
Article 2 - Positive Stakeholder Relationships
Article 3 - Upholding and Supporting Universal Human Rights
BUSINESS COVENANT ON THE ELIMINATION OF CORRUPTION AND BRIBERY
have agreed as follows:
Article 1 - Commitment not to Engage in Bribery of Public Officials:
Article 2 - Ensuring and Enforcing Compliance
Article 3 - Sanctions
Article 4 - Accounting
Article 5 - Mutual Assistance
Article 6 - Signature and Accession
BUSINESS DECLARATION ON ACCOUNTING AND AUDIT PRACTICES
Article 1 - Organisation of the Accounting and Auditing Profession
Article 2 - Accounting Standards
Article 3 - Auditing Standards
Article 4 - Independence and Ethics
Article 5 - Membership of ECSAFA and the African Standard-Setting Body
Please return by fax to:
BUSINESS GROUP
ABSA Group Limited, South Africa
BUSINESS ENDORSEMENT OF THE BUSINESS COVENANTS AND DECLARATIONS ON BUSINESS
Publication compiled and designed by Deloitte & Touche
Participation to “Business Covenants and Declaration on Business in Africa” and the “Business Endorsement of NEPAD” is available.
This NEPAD BUSINESS GROUP (COUNCIL) SOUTH AFRICA “process” seems to be somewhat proactive – yet exclusive – see:
**** NEPAD BUSINESS GROUP (COUNCIL) SOUTH AFRICA (KHOZA)****
• Developing best practice standards of corporate governance throughout Africa, buttressed by proper accounting and
audit procedures and a commitment to eliminate corrupt practises;
• Further improving the quality and effectiveness of our corporate social responsibility programmes and the continued
transfer to national economies of appropriate skills and technology, to help build human capital and productivity;
• Providing support to African governments in their efforts to achieve best practice standards of economic governance
by sharing experiences and seconding skills where appropriate, to support the enhancement of national accounts,
corporate law, financial market operations, harmonisation of listing requirements, investment codes and other domains
where the knowledge and skills of private sector institutions may be relevant.
• Business Covenant on Corporate Governance
• Business Declaration on Corporate Responsibility
• Business Covenant on the Elimination of Corruption and Bribery
• Business Declaration on Accounting and Audit Practices
1. WHAT IS NEPAD?
NEPAD is a VISION and STRATEGIC FRAMEWORK FOR AFRICA’S RENEWAL
The NEPAD strategic framework document was prepared by the leaders of the five initiating states (Algeria, Egypt,
Nigeria, Senegal, South Africa), in response to a mandate given to them by the Summit of the Organisation of African
Unity (OAU). The 37th Summit of the OAU in July 2001 formally adopted the strategic framework document.
NEPAD is designed to address the current challenges facing the African continent. Issues such as the escalating poverty
levels and underdevelopment of African countries and the continued marginalisation of Africa from the global
economy needed a radical new intervention, spearheaded by African leaders, that would bring forth a new Vision for
Africa’s Renewal.
It is a detailed action plan derived from the NEPAD Strategic Framework document and the NEPAD Initial Action Plan,
adopted by the African Union Summit in Durban in June 2002.
The NEPAD Programme of Action is a holistic, comprehensive and integrated sustainable development initiative for
the revival of Africa.
_ To eradicate poverty;
_ To place African countries, both individually and collectively, on a path of sustainable growth and
development;
_ To halt the marginalisation of Africa in the globalisation process;
_ To accelerate the empowerment of women; and
_ To fully integrate Africa into the global economy.
_ African ownership and leadership, as well as broad and deep participation by all sectors of society;
_ Anchoring the redevelopment of the continent on the resources and resourcefulness of the African people;
_ Partnership between and amongst African peoples;
_ Acceleration of regional and continental integration;
_ Building the competitiveness of African countries and the continent;
_ Forging of a new partnership with the industrialised world by, amongst other things, ensuring that it changes
the unequal relationship between Africa and the developed world; and
_ Commitment to ensuring that all Partnerships with NEPAD are linked to the Millennium Development Goals
and other agreed development goals and targets.
_ To create the conditions conducive for investment, high economic growth and sustainable development;
_ To increase Africa’s competitiveness in the world economy;
_ To transform the unequal and donor/recipient relationship with the developed countries and multilateral
institutions to a new partnership that is based on mutual responsibility and respect; and
_ To increase investment on the continent in order to ensure social and economic development.
a. Establishing the Conditions for Development by ensuring -
_ Peace and security;
_ Democracy, political, economic and corporate governance, with a focus on public financial management;
_ Regional co-operation and integration;
_ Capacity building.
b. Policy reforms and increased investment in the following priority sectors -
_ Agriculture;
_ Human development with a focus on health, education, science and technology and skills development;
_ Building and improving infrastructure, including Information and Communication Technology (ICT),
Energy, Transport, Water and Sanitation;
_ Promoting diversification of production and exports, including promotion of agro-industries,
manufacturing, mining, mineral beneficiation and tourism;
_ Accelerating intra-Africa trade and improving access to markets of developed countries;
_ The environment.
THE EXPLANATION OF NEPAD - PREPARED BY THE NEPAD SECRETARIAT
c. Mobilising Resources -
_ Increasing domestic savings and investments;
_ Improved management of public revenue and expenditure;
_ Increasing capital flows through further debt reduction, increased ODA flows;
_ Foreign direct investment; and
_ Improving Africa’s share in global trade.
_ Africa becomes more effective in conflict prevention and the establishment of enduring peace on the continent;
_ Africa adopts and implements principles of good economic and political governance and democracy and the protection of
human rights become further entrenched in every African country;
_ Africa develops and implements effective poverty eradication programmes and accelerates the pace of achieving set African
development goals, particularly human development goals;
_ Africa achieves increased levels of capital flows and investment, both domestic and foreign;
_ Increased levels of ODA to the continent are achieved and its effective utilisation maximised;
_ Africa becomes more effective in terms of policy development on an international level thus ensuring that the continent’s
needs are taken into account; for instance in WTO negotiations;
_ Regional integration is further accelerated and higher levels of sustainable economic growth in Africa are achieved;
_ Genuine partnerships are established between Africa and the developed countries based on mutual respect and accountability;
_ Operationalising the African Peer Review Mechanism;
_ Coordinating and facilitating implementation of projects and programmes;
_ Further developing Programmes of Action and specific interventions for:
_ Market Access, Industrialization, Increasing Intra-Africa Trade and Diversification of Production and Exports;
_ Science and Technology, and the establishment of Regional Centres of Excellence;
_ Gender mainstreaming;
_ Political, economic and corporate governance;
_ Education;
_ Agriculture;
_ Infrastructure;
_ Health;
_ Broadening ownership and participation by all sectors of African society.
NEPAD is a programme of the African Union designed to meet its development objectives. The highest authority of the NEPAD
implementation process is the Heads of State and Government Implementation Committee (HSIC). The HSIC comprises three states per AU region as mandated by the OAU Summit of July 2001 and ratified by the AU Summit of July 2002. The HSIC reports to the AU Summit on an annual basis.
The Steering Committee of NEPAD comprises the Personal Representatives of the NEPAD Heads of State and Government. This Committee instructs the Secretariat of NEPAD to coordinate and implement projects and processes that have been identified by the HSIC as being of priority.
BUSINESS ENDORSEMENT OF THE NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT
BUSINESS COVENANT ON CORPORATE GOVERNANCE
BUSINESS DECLARATION ON CORPORATE SOCIAL RESPONSIBILITY
BUSINESS COVENANT ON THE ELIMINATION OF CORRUPTION AND BRIBERY
BUSINESS DECLARATION ON ACCOUNTING AND AUDIT PRACTICES
BUSINESS GROUP BUSINESS ENDORSEMENT
_ Developing best practice standards of corporate governance throughout Africa, buttressed by proper
accounting and audit procedures and a commitment to eliminate corrupt practices;
_ Further improving the quality and effectiveness of our corporate social responsibility programmes and
the continued transfer to national economies of appropriate skills and technology, to help build human
capital and productivity;
_ Providing support to African governments in their efforts to achieve best practice standards of economic
governance by sharing experiences and seconding skills where appropriate, to support the enhancement
of national accounts, corporate law, financial market operations, harmonisation of listing requirements,
investment codes and other domains where the knowledge and skills of private sector institutions may
be relevant.
(Communicated at the Africa Economic Summit - Durban, June 2002)
Preamble
The Signatories,
Recognising that a high standard of corporate governance is essential to ensure that business plays its proper role in society and promotes economic, social and environmental sustainability by demonstrating respect for all its stakeholders;
Understanding that good corporate governance is characterised by discipline, probity, efficiency, independence, responsibility, transparency, accountability and fairness;
Recognising that weak corporate governance manifests itself in weak legal and regulatory systems, poor banking regulation and
practice, inconsistent accounting and auditing standards, improperly regulated capital markets, ineffective oversight by corporate boards and scant disregard for rights of minority shareholders, which cause severe macro-economic stress and frustrate the goal of sustainable development;
Convinced that good corporate governance is in the interests of shareholders and all stakeholders;
have agreed to commit themselves to the following principles and to ensure that their Boards of Directors apply them in
practice:
Principle 1 - exercise leadership, enterprise, integrity and judgement in directing the corporation so as to achieve continuing prosperity for the corporation and to act in the best interest of the business enterprise in a manner based on transparency, accountability and responsibility;
Principle 2 - ensure that through a managed and effective process Board appointments are made that provide a mix of proficient directors, each of whom is able to add value and to bring independent judgement to bear on the decision-making process;
Principle 3 - determine the corporation’s purpose and values, determine the strategy to achieve its purpose and to implement its values in order to ensure that it survives and thrives, and ensure that procedures and practices are in place that protect the corporation’s assets and reputation;
Principle 4 - monitor and evaluate the implementation of strategies, policies, management performance criteria and business plans;
Principle 5 - ensure that the corporation complies with all relevant laws, regulations and codes of best business practice;
Principle 6 - ensure that the corporation communicates effectively with shareholders and other stakeholders;
Principle 7 - serve the legitimate interests of the shareholders of the corporation and account to them fully;
Principle 8 - identify the corporation’s internal and external stakeholders and agree a policy, or policies, determining how the corporation should relate to them;
Principle 9 - ensure that no one person or block of persons has unfettered power and that there is an appropriate balance of power and authority on the board which is, inter alia, usually reflected by separating the roles of the Chief Executive Officer and Chairman, and by having a balance between executive and non-executive directors;
Principle 10 - regularly review processes and procedures to ensure the effectiveness of its internal systems of control, so that its decision-making capability and the accuracy of its reporting and financial results are is maintained at a high level at all times;
Principle 11 - regularly assess its performance and effectiveness as a whole and that of the individual directors, including the Chief Executive Officer;
Principle 12 - appoint the Chief Executive Officer and at least participate in the appointment of senior management, ensure the motivation and protection of intellectual capital intrinsic to the corporation, ensure that there is adequate training in the corporation for management and employees, and a succession plan for senior management;
Principle 13 - ensure that all technology and systems used in the corporation are adequate to properly run the business and for it to remain a meaningful competitor;
Principle 14 - identify key risk areas and key performance indicators of the business enterprise and monitor these factors;
Principle 15 - assess annually and ensure to the best of its ability that the corporation will continue as a going concern for the following fiscal year.
Preamble
The Signatories,
Understanding that great social, environmental and economic interventions are necessary in Africa to realise the potential inherent in the resources and people of the continent;
Acknowledging that NEPAD is a principled and ambitious programme to unlock this potential;
Understanding that corporations have a profound impact on their environment and stakeholders and have an obligation to act in a socially responsible manner;
Recognising that Corporate Social Responsibility (CSR) is an essential part of the interventions needed to ensure success and that socially responsible investment (SRI) is a central element of corporate citizenship;
Acknowledging that investors are attracted by socially responsible business approaches which achieve long-term shareholder value by embracing opportunities and managing risks that go beyond short-term financial analysis;
Believing that there is a need for an objective and accepted means of measuring CSR performance to encourage constructive, sustainable SRI in Africa;
Understanding that the economic empowerment of historically disadvantaged persons, enabling their advancement in accordance
with their abilities, is an important component of CSR;
Recalling the importance of the Global Compact on respect for human rights, fair labour practices and environmental sustainability, which provides business with an international framework for global, values-based management;
Mindful that the JSE Securities Exchange South Africa (JSE) and the FTSE have been working with the FTSE/JSE SRI Advisory Committee to create a Socially Responsible Investment Index for South Africa to encourage SRI and contribute to higher CSR standards;
Aware that the JSE and FTSE are preparing a joint document outlining the Philosophy and Criteria on which the FTSE/JSE SRI Index for JSE listed companies will be based and intend that these criteria will provide a benchmark for non-listed CSR projects as well;
Conscious that the SRI Index will identify best practice in CSR, highlight those companies with good corporate social responsibility performance, serve as a benchmark index facilitating investment in companies with good records of CSR and form the basis for SRI products;
Understanding that companies’ performance will be assessed in relation the main pillars of the SRI Index,
specifically -
_ environmental sustainability
_ positive relationships with stakeholders; and
_ upholding and supporting universal human rights;
have agreed to commit themselves to these principles in line with the following understanding of their content:
This principle reflects the understanding that Africa has a critical resource base that must be wisely used if it is to be sustained and to facilitate sustainable development. Companies impacting on these resources should implement systems to measure the effect of their activities and strive continuously to ensure sustainable use, while developing strategies to prevent, mitigate and control any damage they may cause, so as to protect and rehabilitate the environment. Reporting on their strategies and performance is a key indicator of a company’s commitment to environmental sustainability.
1. The maintenance of positive stakeholder relationships is a key component of CSR as they often impact more immediately on
the lives of some citizens than even the State. Balancing superior financial performance with exemplary CSR is the major challenge facing companies in this respect.
2. Companies should apply best governance practices, maintaining integrity, transparency and accountability. Core business strategy must be directly linked to management systems. Core labour standards that facilitate freedom of association and fair working conditions, while promoting diversity, equity and human capital development, are essential. Employee health and safety are of particular importance.
1. Corporate values should recognise human rights as the cornerstone of a democratic society, and companies should promote
human dignity, equality and the advancement of rights and freedoms.
2. While all companies have a responsibility to contribute to respect for universal human rights, those companies that operate businesses of strategic importance in countries with poor human rights records, or whose business of strategic importance
impacts on such countries, have the greatest responsibility in this regard.
Preamble
The Signatories,
Considering that bribery is a widespread phenomenon in international and local business transactions, including trade and investment, which raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions;
Considering that all companies doing business in Africa and elsewhere, share a responsibility to combat bribery in international and local business transactions;
Having regard to the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, adopted by the Negotiating Conference of the Organisation for Economic Co-operation and Development (OECD) on 21 November 1997, which, inter alia, called for effective criminal sanctions to deter, prevent and combat the bribery of foreign public officials in connection with international business transactions;
Welcoming other developments which further advance international and local understanding and co-operation in combating bribery of public officials, including actions of the United Nations, the World Bank, the International Monetary Fund, the World Trade Organisation, the Organisation of American States, the Council of Europe and the European Union; including the spirit and intent of NEPAD.
Welcoming the efforts of companies, other business organisations and trade unions as well as other non-governmental organisations to combat bribery;
Recognising the essential role of governments and business in the prevention of solicitation of bribes from individuals and enterprises in international and local business transactions;
Recognising that the success and impact of this Covenant in eliminating bribery and corruption is dependent on the commitment and participation of all members of the business community in Africa.
Recognising that the ability of the signatories to comply with this Covenant is dependent on the legal frameworks and implications thereof applicable in participating countries.
Recognising that achieving progress in this field requires multilateral co-operation, monitoring and follow-up and active engagement
by private sector bodies;
1. Each signatory will ensure that neither it nor any other company, institution, body or person controlled, employed or otherwise retained by it, will intentionally offer, promise or give any undue pecuniary or other advantage, whether directly or through intermediaries, to a public official, for that official or for a third party, to induce that official to act or refrain from acting in the performance of official duties, so as to obtain or retain business or other advantage in the conduct of international business.
2. Each signatory will take any measures necessary to ensure that all persons in its employ and/or otherwise retained by it will be made aware that complicity in, including incitement, aiding and abetting, or authorisation of an act of bribery of a public official is a violation of this commitment and will expose the perpetrator to the most stringent disciplinary measures, as well as to criminal liability.
3 For the purpose of this Covenant:
a. “public official” means any person holding a legislative, administrative or judicial office of a country, whether appointed or elected; any person exercising a public function for a country, including for a public agency or public enterprise; and any official or agent of a public international organisation;
b. “country” includes all levels and subdivisions of government, from national to local;
c. “act or refrain from acting in relation to the performance of official duties” includes any use of the public official’s position, whether or not within the official’s authorised competence.
d. “Bribery” is bribery, irrespective of the amount/value involved.
1. Each signatory will take such measures as are necessary, in accordance with its corporate procedures, to ensure that the provisions of this Covenant are brought to the attention of every company, institution, body or person controlled, employed or otherwise retained by it and that each such company, institution, body and person complies with the obligations assumed thereunder.
2. Each signatory undertakes that enforcement of the prohibition of bribery of public officials will not be influenced by considerations of corporate financial interest, the potential effect upon corporate or personal reputation or the identity of the natural or legal persons involved.
1. Each signatory undertakes that the bribery of a public official will upon discovery result, in addition to any criminal penalties that are imposed by law, in the most stringent disciplinary measures, including dismissal, by the signatory company.
2. Each signatory will take such measures as are necessary to ensure that any act involving the bribery of a public official of which it becomes aware, is brought to the attention of the Government of the State by which such official is employed.
1. In order effectively to combat bribery of public officials, each signatory will take such measures as are necessary, to prohibit the establishment of any practices, structures or mechanisms designed to facilitate or enable, or to hide or cover up, any acts undertaken for the purpose of bribing public officials or of hiding such bribery. This prohibition will include, but is not limited to, off-the-books accounts, the making of off-the-books or inadequately identified transactions, the recording of non-existent expenditures, the entry of liabilities with incorrect identification of their object, as well as the use of false documents.
2. Each signatory will enforce effective, proportionate and dissuasive disciplinary measures in the event of any such omission and falsification in the books, records, accounts and financial statements of any company, institution or body under its control.
1. All signatories will co-operate in systematically monitoring and promoting full and effective implementation of this Covenant.
2. Each signatory will, to the fullest extent possible, provide prompt and effective assistance to another signatory for the purpose of investigations and proceedings undertaken by a signatory concerning violations of this Covenant and in any disciplinary proceedings brought by a signatory in enforcing its obligations under this Covenant.
This covenant will be open for accession by all companies and other business entities conducting business in Africa and elsewhere.
Accession will be by means of signature.
Preamble
The Signatories,
Recognising that a high standard of financial reporting and quality information protects the public and promotes confidence among all stakeholders in the reliability of reported information and that applying internationally recognised accounting standards assists in attracting, and lowering the cost of, capital;
Understanding that the credibility of financial statements is enhanced through audits performed by adequately trained public auditors in terms of internationally recognised methodologies and practices;
Noting the important role that the International Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) are playing in establishing best-practice standards of professional accounting, auditing and ethics;
Observing that a number of African countries have well-established infrastructures supporting public accountants and auditors, as well as qualified accountants employed in commerce and industry outside of the attest function, and that these institutes can be of assistance to other African countries wishing to progress to international standards;
Noting that the Eastern, Central and Southern African Federation of Accountants (ECSAFA) is a professional federation whose mission is to build and promote the accountancy profession in Eastern, Central and Southern Africa to help achieve economic development, and whose objects include co-ordinating developing the accountancy profession and promoting internationally-recognised standards of professional competence and conduct in Eastern, Central and Southern Africa;
Aware that ECSAFA is promoting the establishment of professional accounting and auditing institutes in African states and assisting those established accounting bodies countries that need to refresh and improve capabilities and standards;
Observing that ECSAFA is promoting the establishment of an African Standard-Setting Body to enhance the influence of African countries with the IASB;
Noting that each member state of the African Standard-Setting Body will be required to adopt IASB standards and that the African Standing-Setting Body will seek to contribute to standard-setting and influence the agenda of the IASB on subjects of interest to Africa.
Aware that ECSAFA is also considering assisting African countries in determining best practices among its member countries in
• Corporate Governance
• Corrupt business practices prevention
• Ethics and integrity and surveying the status of its member countries in;
• Accounting standards
• Auditing standards
• Accounting and auditing bodies/institutes
• Practice standards
• Entry level requirements for professional accountants and auditors have agreed as follows:
1. All African states are encouraged to establish professional bodies that will promote, guide and monitor the development of the accounting and auditing profession in those countries.
2. While differing degrees of legislation and self-regulation have been combined successfully in developing the accounting and auditing profession around the world, the key features in the mandates of such professional bodies are to effect:
• Appropriate educational standards and sufficient and relevant practical training for entry to the profession
• Formal registration of public accountants and auditors
• Appropriate standards for continuing education
• Regular review of the standard of work performed by registered practitioners
• Disciplinary procedures to deal with transgression of standards.
3. Many African states have established professional bodies to promote, guide and monitor the public accounting and auditing profession in conjunction with government control agencies. All African states are urged to ensure that such professional bodies are empowered to, and do, adopt and apply mandates covering these key features.
1. While a number of industrialised countries presently have distinct accounting standards, there is growing recognition, in the context of global economic activity, of the utility of the international accounting standards developed by the International Accounting Standards Board (IASB). Member states of the European Union and other industrialised countries have agreed to adopt these standards in future.
2. Many African states have adopted IASB standards and all are urged to do so.
1. Auditing standards of high quality have been developed by the International Federation of Accountants (IFAC) and are applied in a number of African states, whose professional bodies are full members of IFAC.
2. All African states are urged to adopt the IFAC’s International Auditing Standards.
1. Public accountants and auditors must act in an ethical manner and be seen to be independent in the advice and opinions they provide.
2. IFAC has developed an International Code of Ethics that provides substantial guidance, enabling each country to establish a code of ethics, detailed rules and standards of conduct.
3. All African states are urged to adopt the IFAC International Code of Ethics.
1. Membership of appropriate professional institutes has proven to be a most effective means of promoting compliance with best practice standards in all countries.
2. ECASA is active in the Eastern, Central and Southern African region and has a wide membership in these parts of Africa. ECSAFA is also promoting the establishment of an African Standard-Setting Body.
3. All African states and professional institutes in those states are urged to associate themselves in an appropriate way with these endeavours.
I wish to add my signature of support to the:
Business Endorsement of the New Partnerships for Africa’s Development
Business Covenants and Declarations on Business in Africa
Name: .........................................................................
Position: .....................................................................
Company: .................................................................
Address: .....................................................................
......................................................................................
......................................................................................
......................................................................................
E-mail:.........................................................................
Signature: ..................................................................
Rentia Vendeiro
Tel: +27 11 520 7002
Fax: +27 11 520 8605
Email:rentiav@jse.co.za
SUPPORTERS OF THE STATEMENT ON BUSINESS ENDORSEMENT FOR THE NEPAD
Accenture (SA) (Pty) Ltd, South Africa
Accenture, United Kingdom
ACF/ Bricotex, Democratic Republic of Congo
AECI Limited, South Africa
Africa Growth Holdings Ltd, South Africa
Africa Matters Ltd, United Kingdom
Africa Online Holdings, Kenya
African Banking Corporation, Zimbabwe
African Business Roundtable, South Africa
African Development Bank, Congo
African Lakes Corporation, United Kingdom
African Management Services Company (AMSCO), Zimbabwe
African Rainbow Minerals (ARM Gold), South Africa
Afrikaanse Handelsinstituut, South Africa
Afripa Telecom, South Africa
Afrisun (KZN) Pty, South Africa
Agricultural Bank of Zimbabwe, Zimbabwe
Air Liquide, South Africa
Alpha (Pty) Ltd, South Africa
AMB, South Africa
American Chamber of Commerce in South Africa
Anglo American Corporation of South Africa Ltd, South Africa
Anglovaal Industries Limited, United Kingdom
Anglovaal Mining, South Africa
Arivia.Kom, South Africa
Arter & Hadden, USA
Ashanti Goldfields, Ghana
Ashanti Goldfields Zimbabwe Limited, Zimbabwe
Austral Consulting, Mozambique
Bamburi Cement Ltd, Kenya
Banco Internacional de Moçambique SA, Mozambique
Banking Council, South Africa
Banque Centrale de Développement de l’Afrique Centrale (BDEAC), Congo
Barclays Bank of Kenya Ltd, Kenya
Barclays Bank of Zimbabwe Ltd, Zimbabwe
Barclays South Africa, South Africa
Barloworld Limited, South Africa
Bateman Projects Holdings Ltd, South Africa
Beiersdorf Consumer Products (Pty) Ltd, South Africa
Bell’s Construction, Zambia
Bell Equipment, South Africa
BHP Billiton, South Africa
BIT4M, South Africa
Black Business Council, South Africa
Black Management Forum, South Africa
Business Report, South Africa
Caloco Investments,South Africa
CDI, Ltd, South Africa
Cell C, South Africa
CETA - Contruçao e Serviços Sarl, Mozambique
Chemplex Corporation, Zimbabwe
CIDA City Campus, South Africa
Citibank NA, South Africa
The Coca-Cola Company, South Africa
Cofesa, South Africa
Commercial Farmers’ Union, Zimbabwe
Congress of Business and Economics, South Africa
Consilience, South Africa
Coralma International, France
Council for Scientific and Industrial Research (CSIR), South Africa
Credit Guarantee Insurance Corporation of Africa Limited, South Africa
The Crown Agents Foundation, South Africa
DaimlerChrysler AG, Germany
Dairibord Zimbabwe Limited, Zimbabwe
Dairybelle, South Africa
Dapeg International, Zambia
Dapeg Ltd, Ghana
Daun & Cie, Germany
David Marcusse Attorney, South Africa
De Beers Group of Companies, South Africa
Deloitte Touche Tohmatsu, South Africa
Deutsche Bank AG, United Kingdom
Dijalo Property Services (Pty) Ltd, South Africa
Discovery Health, South Africa
DMS International, United Kingdom
Durban Chamber of Commerce and Industry, South Africa
Ecobank, Togo
Empresa Nacional de Telecomunicaçoes de Moçambique (TDM), Mozambique
ENF Corporate Governance, South Africa
Engen Petroleum Ltd, South Africa
Ernst & Young, South Africa
ESKOM, South Africa
Exel Petroleum (Pty) Ltd, South Africa
Export Development Corporation, Canada
Fasic Investment Corporation Limited, South Africa
Fédération des Entrepreneurs Congolais, Democratic Republic of Congo
Ferrostaal AG, Germany
Ferrostaal Investments South Africa (PTY) Ltd, South Africa
Fidelity Bank Plc, Nigeria
Finhold, Zimbabwe
First Mutual Life Assurance Society of Zimbabwe, Zimbabwe
Firstrand, South Africa
Firstrand Bank, South Africa
Freightdynamics, South Africa
Gallium Investments & Partner, Kenya
Grinaker-LTA, South Africa
Guaranty Trust Bank Plc, Nigeria
Guinness UDV South Africa, South Africa
Housing Finance Company of Kenya, Kenya
HSBC Equator Bank, United Kingdom
IMMA - Advocates, Tanzania
Independent Development Trust (IDT), South Africa
Independent News and Media, South Africa
Indo Zambia Bank Ltd, Zambia
Industrial Development Corporation, South Africa
Intel Corporation, South Africa
Interfin Merchant Bank of Zimbabwe Ltd, Zimbabwe
Investec Group, South Africa
JHI Real Estate Limited, South Africa
The IQ Business Group, South Africa
JSE Securities Exchange South Africa, South Africa
Kemilinks International, South Africa
Kenya Business Council, Kenya
KPMG, South Africa
The KwaZulu Natal Chamber of Commerce and Industry, South Africa
L.A. Group Ltd, South Africa
Legae Securities, South Africa
Liberty Group Ltd, South Africa
The Life Offices’ Association, South Africa
Mabati Rolling Mills, Kenya
Maersk South Africa (Pty) Ltd, South Africa
Malawi Investment Promotion Agency, Malawi
Marwick & Associates, South Africa
Matilzi Sisiti Mathisila Inc, South Africa
Mc Cain Foods (SA) (Pty) Ltd., South Africa
McCarthy Limited, South Africa
Merrill Lynch Pty Ltd, South Africa
Merck Sharp & Dohme, South Africa
Mestres & Serviços Ltd, Angola
Microsoft West, East & Central Africa, Côte d’Ivoire
Miga (World Bank Group), South Africa
Mitchell, Porter & Williams, USA
Mitco Ltd, Malawi
MSD Interpharma, France
MSMM Inc, South Africa
Multichoice (Pty) Ltd, South Africa
Murray & Roberts Holdings Limited, South Africa
Mwaniki Associates Ltd, Kenya
NAFCOC, South Africa
Nairobi Stock Exchange, Kenya
Namib Management Services, South Africa
Namib Mills (Pty), Namibia
Nation Media Group, Kenya
National Black Business Caucus, South AFrica
National Business Initiative, South Africa
National Development Corporation, Tanzania
National Discount House Limited, Zimbabwe
Nduna Advisory Services, South Africa
Nedcor Ltd, South Africa
Nestlé South Africa (PTY) Ltd, South Africa
New Diamond Corporation, South Africa
The New HP, South Africa
Niiham Ventures, Ghana
Old Mutual, South Africa
Oracle Corporation SA Ltd, South Africa
Oryx Group, Oman
OTK Holdings, South Africa
Patro Holdings, Zimbabwe
The Petroleum Oil & Gas Corporation of South Africa (Pty) Ltd - PetroSA, South Africa
Pfizer Laboratories, South Africa
PG Industries (Zimbabwe) Ltd, Zimbabwe
Phonix Contractors International, Zambia
Pietermaritzburg Chamber of Commerce and Industry, South Africa
Plate & Glass Holding, South Africa
Port Elizabeth Regional Chamber of Commerce and Industry, South Africa
Post Newspapers Ltd, Zambia
Press Corporation Limited, Malawi
PricewaterhouseCoopers, South Africa
Profil Africa Ltd, Canada
Quantimapp Consulting, South Africa
Qubelisa Investments & Projects cc, South Africa
Reunert Limited, South Africa
Roche Products (Pty) Ltd, South Africa
Rössing Uranium Limited, Namibia
Rwanda Investment Promotion Agency, Rwanda
SACOB, South Africa
Safika Holdings, South Africa
Sanlam, South Africa
Sasol, South Africa
Santam limited, South Africa
Sappi Ltd, South Africa
Sentech, South Africa
Shell International, United Kingdom
Siemens Limited, South Africa
Siemens Telecommunications (Pty) Ltd, South Africa
Silver Seed Capital Pty Ltd, SA
SNC-Lavalin Group Inc., Canada
South African Airways, South Africa
South Africa Breweries Limited, South Africa
Spoornet, South Africa
Standard Bank of South Africa Ltd, South Africa
Stewart Scott International, South Africa
Suez, South Africa
Sutton Group, Switzerland
Swaziland Railway, Swaziland
T A Holdings Limited, Zimbabwe
Tebcon Developers (Pty) Ltd, South Africa
Technologi Partners International, United States of America
Telkom South Africa Ltd, South Africa
Thahane Associates, South Africa
Thyssen (SA) Pty, South Africa
Tibiyo Taka Ngwane, Swaziland
Timber Tech Services (Pty) Ltd
The Tongaat-Hulett Group Ltd, South Africa
Transactions Nord-Sud, Algeria
Transnet Ltd, South Africa
Triangle Limited, Zimbabwe
Trust Bank Corporation, Zimbabwe
Tselane Investment Holding, South Africa
Tygerberg College, South Africa
Umgeni Water, South Africa
Unilever, South Africa
Unilever Plc, United Kingdom
Volkswagen of South Africa (Pty) Ltd, South Africa
Vula Investments Holdings
Wipcapital, South Africa
Woolworths (PTY) ltd, South Africa
Yoynaid Waja Tar & Business Consultants, South Africa
Zambia Chambers of Commerce, Zambia
Zambian Agribusiness Forum, Zambia
Zimtrade, Zimbabwe
AirLiquide, South Africa
Alpha Pty Ltd, South Africa
Austral Group of Consulting, Mozambique
Accenture, South Africa
Afrikaanse Handelsinstituut, South Africa
Alpha, South Africa
Banking Council, South Africa
Barclays, South Africa
Bateman Group, South Africa
Batepro, South Africa
BHI International, Austria
Canadian Fishery Consultants Ltd, Canada
CBCL Ltd, Canada
China Accociation of Women Entrepreneurs, China
Cimpoges, LDA, Mozambique
Daun & Cie, Denmark
De Beers, South Africa
Deloitte & Touche, South Africa
Dimension Data, South Africa
Eastcan Geomatics Consultant Ltd, Canada
ENF Corporate Governance Advisory Services, South Africa
Engen Petroleum, South Africa
Eskom, South Africa
Ferroman (Pty) Ltd, South Africa
Fidelity Bank Plc, South Africa
FirstRand Ltd, South Africa
Goldfields, South Africa
Hewlett Packard, South Africa
Independent News and Media, South Africa
Investec Bank Ltd, South Africa
Ishengoma, Masha, Mujulizi & Magai, Tanzania
Institute of Directors, South Africa
Kingdom Financial Holdings Ltd, Zimbabwe
KPMG, South Africa
Massmart Holdings Ltd, South Africa
Metro Cash & Carry, South Africa
MTN Group, South Africa
MultiChoice Africa, South Africa
Namib Management Services, South Africa
Nedcor Ltd, South Africa
Nigerian National Pet Corporation, Nigeria
Oxford Analytica, United Kingdom
Parsons Brinckerhoff Inc, USA
Price Waterhouse Coopers, South Africa
Sappi Ltd, South Africa
Sasol Ltd, South Africa
CSIR, South Africa
Siemens, South Africa
South African Breweries, South Africa
South African Foundation, South Africa
Strategic Concepts (Pty) Ltd, South Africa
Technologi Partners International, United States of America
Telkom SA, South Africa
The Banking Council, South Africa
Think Tools AG, Switzerland
Tongaat-Hulett, South Africa
Transnet, South Africa
Umgeni Water, South Africa
Uniliver SA (Pty) Ltd, South Africa
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