International Finance Corporation: Corporate Governance
Good Corporate Governance is recognized around the world as a key element for an efficient and transparent functioning of private sector companies and the development of capital markets. Through the support provided by this project, companies in Kyrgyzstan and Tajikistan will improve their corporate governance practices. This will enable the companies to attract more financing from investors, improve their operational performance and enhancing the potential to achieve long-term growth. The project is implemented by the International Finance Corporation (IFC).
Private sector and entrepreneurship
- International Finance Corporation
|Background||Tajikistan and the Kyrgyz Republic - two small landlocked nations with relatively low levels of investment and heavy dependency upon trade with key regional partners - face both significant economic challenges in growing and diversifying their economies. Private sector development as a way to generate employment is thus high on the agenda. One way of strengthening the private sector is to improve Corporate Governance (CG). CG is a cross cutting topic that is relevant for all sectors of the economy, setting the tone how companies should be managed and interact with stakeholders. CG is a key requirement to attract and unlock private investments|
|Objectives||The main objective of the project is to strengthen the capacities and transfer knowledge to selected local partner institutions, so that they can promote CG and sell CG services in the countries independently of donors providing assistance. It is expected that the local institutions will receive sales revenues by selling CG services to companies in Kyrgyzstan and Tajikistan and become finacially self-sufficient institutions.|
|Medium-term outcomes||Local partner institutions are fully capacitated to deliver CG services in the Central Asian market (so called 'exit-partners') .Thanks to better CG, Tajik and Kyrgyz companies will improve thier performance. Recommended changes related to the CG structure, procedures and policies are implemented by these companies. Alos, thanks to better CG in place, the companies will be able to attract financing and undergo a substantial phase of growth.Laws or regulations are improved (according to the recommendations provided by the project).|
Expected results: Men and particulalry women receive intensive trainings on CG.Numerous companies receive advisory services related to CG.A couple of companies receive in-depth advisory services related to CG.conferences, workshops or seminards on CG are being held.Private sector participants attend a conference or a workshop or a seminar on CG.Various awaraness campaigns and events on the importance of Corporate Governance for a sound private sector are organized.
Results from previous phases: The work on Corporate Governance has been ongoing since 2007. (It was supported by other donors.) Following results could be achieved: Direct company work : The project activities have significantly strengthened CG practices and commitment to good CG in the over 770 companies and banks that were assisted or attended project events. As a result of adopting new CG standards, 50 companies reported that they could improve their operational performance, governance structure, accountability and internal control. As a consequence of improved CG practices, these companies became more attractive to investors and succeeded to attract around USD 21 million of investments.Legal work : Recommended legislation was adopted by the respective governments.Work with educational entities : CG education is greatly improved as evidenced by growing positive feedbacks from both students and teachers, as well as the fact that CG courses are formally institutionalized in universities.
|Directorate/federal office responsible||
Swiss cooperation with Eastern Europe
|Budget||Current phase Swiss budget CHF 729'782 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 4'710'000|
Phase 12 07.05.2012 - 31.12.2015 (Completed)Phase 10 08.05.2012 - 31.12.2015 (Completed)