The Economic and Corporate Governance Initiative

State capacity-building is a critical aspect of creating conditions for development. The state
has a major role to play in promoting economic growth and development, and in implementing
poverty reduction programmes. However, the reality is that many governments lack the capacity to
fulfil this role. As a consequence, many countries lack the necessary policy and regulatory
frameworks for private sector-led growth. They also lack the capacity to implement programmes,
even when funding is available.

It is for this reason that targeted capacity-building should be given high priority.
Programmes in every area should be preceded by an assessment of capacity, followed by the
provision of appropriate support.

Objective

To promote throughout the participating countries a set of concrete and timebound
programmes aimed at enhancing the quality of economic and public financial management, as well
as corporate governance.

Actions

• A Task Force from the Ministries of Finance and Central Banks will be commissioned to
  review economic and corporate governance practices in the various countries and
  regions, and to make recommendations on appropriate standards and codes of good
  practice for consideration by the Heads of State Implementation Committee within six
  months;
  
  
• The Implementation Committee will refer its recommendations to African states for
  implementation;
  
  
• The Implementation Committee will give high priority to public financial management.
  Countries will develop a programme for improving public financial management and
  targets, and assessment mechanisms will also be set in place;
  
  
• The Heads of State Implementation Committee will mobilise resources for capacity-building
  to enable all countries to comply with the mutually agreed minimum standards
  and codes of conduct.