afqf.jpg

Risk Considerations:

1. Regulatory Risks: Evolving regulatory environments, licensing issues, and compliance challenges.
2. Infrastructure Risks: Aging infrastructure, power outages, and fiber cuts.
3. Cybersecurity Threats: Increasing cyber attacks and data breaches.
4. Competition and Market Saturation: Intense competition and market saturation in key countries.
5. Currency Fluctuations and Economic Instability: Currency fluctuations and economic instability.

Mitigants:

1. Regulatory Risks:
– Engage with regulators and industry associations to shape policy and advocate for favorable regulations.
– Ensure compliance with regulatory requirements through robust internal controls.
2. Infrastructure Risks:
– Invest in modernizing and expanding infrastructure to improve resilience and capacity.
– Implement backup power systems and redundancy measures.
3. Cybersecurity Threats:
– Implement robust cybersecurity measures, including threat detection and incident response plans.
– Conduct regular security audits and penetration testing.
4. Competition and Market Saturation:
– Differentiate through innovative products and services.
– Focus on customer retention and loyalty programs.
5. Currency Fluctuations and Economic Instability:
– Diversify revenue streams across countries and currencies.
– Implement hedging strategies to manage currency risk.

Additional Mitigants:

1. Develop a comprehensive risk management framework.
2. Conduct regular risk assessments and reviews.
3. Implement a robust compliance program.
4. Foster a culture of innovation and continuous improvement.
5. Develop strategic partnerships and collaborations.
6. Invest in employee training and development.
7. Engage with stakeholders, including customers, investors, and communities.

By understanding these risk considerations and implementing effective mitigants, boards in the telecommunications sector in Africa can minimize risks and drive long-term success.


202.jpg

Key issues facing boards of directors in 2025

Strategic Leadership and Oversight
Boards must prioritize strategic leadership and oversight, ensuring alignment with the company’s goals and objectives.

Diversity, Equity, and Inclusion
Boards should focus on diversity, equity, and inclusion, recognizing the benefits of diverse perspectives and experiences.

ESG and Sustainability
Boards must address environmental, social, and governance (ESG) issues, prioritizing sustainability and responsible business practices.

Technology and Innovation
Boards should stay informed about technological advancements, such as generative AI, and their impact on the company’s business model and operations.

Global Uncertainty and Risk Management
Boards must navigate global uncertainty, managing risks associated with geopolitical tensions, economic volatility, and regulatory changes.

Talent Management and Succession Planning
Boards should focus on talent management and succession planning, ensuring the company has a strong leadership pipeline.

Stakeholder Engagement and Communication
Boards must prioritize stakeholder engagement and communication, maintaining transparency and trust with investors, customers, and employees.

Board Composition and Refreshment
Boards should regularly assess their composition and refreshment, ensuring they have the right skills, expertise, and perspectives to drive the company’s success.

Culture and Values
Boards must promote a strong culture and values, supporting ethical decision-making, accountability, and a positive work environment.


WV.jpg
  1. Diversity and Inclusion: Ensure the board reflects a diverse range of skills, experiences, backgrounds, and perspectives to drive informed decision-making and innovation.
  2. Strategic Alignment: Recruit directors whose expertise aligns with the company’s strategic goals and objectives, enabling effective oversight and guidance.
  3. Independence and Objectivity: Prioritize independent directors who can bring objective perspectives, unbiased by conflicts of interest or personal agendas.
  4. Relevant Expertise and Experience: Identify directors with relevant industry, functional, or technical expertise to provide valuable insights and informed decision-making.
  5. Leadership and Governance Skills: Recruit directors with proven leadership and governance skills, including the ability to engage in constructive debate, build consensus, and hold management accountable.
Additionally, consider factors like:
 
– Director tenure and term limits
– Board size and composition
– Director compensation and incentives
– Ongoing training and development
– Succession planning and board renewal

By addressing these issues, organizations can recruit high-quality board directors who drive long-term success and sustainability.


wfg.jpg

Abstract- This article talks about need of Directors Training as well as it summarizes what the law requires in different jurisdictions, and at the end it distinguishes for each country whether these requirements are mandatory or voluntary. In a world of instant communication and ever changing business models, the traditional task of the Professionals in business is evolving. The mounting drift focus on:
• Increased governance requirements
• More regulations
• More emphasis on documentation
• More intervention from governments

Together with guiding corporate strategy, the board is chiefly responsible for monitoring managerial performance and achieving an adequate return for shareholders, while preventing conflicts of interest and balancing competing demands on the corporation. Now more than ever, directors need to understand their fiduciary, legal, and ethical oversight responsibilities hence the bar has been hoisted. Board of directors must focus more on economic performance, not conformance. Public confidence in corporations has reached an all-time low and the role of directors has become even more challenging and demanding.

Besides, Governance-related policy changes introduced in recent years have increased the focus on the experience and qualifications of corporate directors. Accompanying these changes is an increased expectation that companies and boards take affirmative steps to ensure directors are prepared to address emerging opportunities and challenges. The board of directors has had often the business shrewdness, but lack a deep grasp of corporate governance or the leadership skills required to reform policies, practices, and behaviours that can undermine a company’s performance.

Today’s boards of directors are facing an unprecedented level of scrutiny and pressure from regulators, investors, media, institutional investors, and other stakeholders. Besides, Directors’ training and development is fundamental element in enhancing board effectiveness and can help board members be better prepared to tackle misgiving. An effective board education program offers ongoing educational opportunities that help board members continuously cultivate skills that heighten the overall effectiveness and performance of the board.

Boards today can be a competitive advantage for companies. They can provide an outside view, overcome blind spots in strategy, raise awareness of external risks, connect with governments, society and other stakeholders, give credibility and build trust in ways that executive teams cannot. But most board education programs today add little value and instead either focus on the regulatory environment or copy existing managerial education for senior executives. But boards need more than this to become effective. For example, the board’s strategic role is different from the strategic role of executives. It ranges from supervision to co-creation of supporting the executives

The Board of directors not only monitor the company’s innovation performance, they actively contribute to it. Board diversity is key in this regard as board members from other industries are faster to foresee sudden industry shifts or disruptive moves. Employee representatives can also be an excellent source of innovative thinking. Board education is failing to address many other important questions, such as which structures enable boards to add real value, as opposed to mere regulatory compliance. And, most importantly, what makes an individual a good board member. 

Besides, Board development and training is important because today’s chief executive officers (CEOs) are overstretched and confronted with an incredible rise in complexity of society, governments, alternative business models, global changes, new risks and opportunities and shifts in economic conditions. Even the best executives cannot be expected to respond consistently to all these challenges.

As organizations strive to compete in the global economy, differentiation on the basis of the skills, knowledge, and motivation of their workforce takes on increasing importance. According to a recent industry report by the American Society for Training and Development alone spend more than $126 billion annually on training and development. Undoubtedly, Education is important, but people learn from their practical experiences much better as compared to bookish knowledge. Now a days training and development has been the most important factor in the business world because it increases the efficiency and the effectiveness of both directors and the organization.

OCED in 2004 avowed that in order to improve board practices and the performance of its members, an increasing number of jurisdictions are now encouraging companies to engage in board training and voluntary self-evaluation that meets the needs of the individual company. (Principle VI.E.3)

a)Orientation of Director on Board
The move from being a manager to a directorship or from director to chairman is more than a change in responsibilities; it is a major change in behaviour and identity. Most of directors will have been becoming more experts in a narrower field, or focusing only on the interests of a single department. Suddenly, a need to have equal responsibility for all departments scanning the external environment for opportunities and developments and joining a new, elite, group at the top. Their need and requirement is different from the seasoned and full time director working with other board of similar or different product line.

Numerous companies are faced with the need to make a step change in the way they operate, perhaps when the business has grown from small, informal beginnings to a point where a more structured organization is appropriate. Effective company directors understand that directing the organization is much more than managing it.

They aim to maximize their contribution to the work of the board and ensure that they achieve high performance in all aspects of their role as company director. The difficulty is for the newly-appointed company directors manage their transition to the board effectively, by explaining both the theory and the practice of corporate governance and by building on
their existing competencies.

b) Why is it Important to Welcome and Train new Board Members?
A proper welcome and training will help new members:

• Take on their roles in the organization both quickly
and comfortably;
• Feel more connected to one another;
• Feel more connected to the organization;
• Better understand their role on the Board;
• Operate from the same “script” that is, to
understand the vision, mission, and their roles in the
organization;
• Feel more motivated to do a better job.

i. Ideal Training Objectives
The training objectives of the new director(s)
must be:
• A knowledge of the law relating to company
directors’ liabilities;
• A better appreciation of how to apply the principles
of corporate governance to building an effective
organization;

An insight into how to balance the different aspects of the company director role – governance, entrepreneurship and management;

• A clear understanding of the leadership and organizational issues involved in stakeholder management and performance delivery;

• A sharper focus on their own competencies and how they can be further enhanced in order to maximize the effectiveness of their dealings with the rest of the board as well as with the organization as a whole.

 

Source: globaljournals.org


key.jpg
African Boards of Directors should possess the following TECHNICAL SKILLS for best performance:
 
  1. Financial Literacy: Understanding financial statements, budgeting, and financial reporting.
  2. Strategic Planning: Developing and implementing strategic plans, setting goals and objectives.
  3. Risk Management: Identifying, assessing, and mitigating risks, ensuring compliance with regulations.
  4. Governance and Compliance: Understanding governance structures, ensuring compliance with laws and regulations.
  5. Digital Literacy: Understanding digital technologies, leveraging technology for business growth.
  6. Data Analysis and Interpretation: Interpreting data, making informed decisions, driving business growth.
  7. Cybersecurity: Understanding cybersecurity risks, implementing measures to protect against cyber threats.
  8. Environmental and Social Impact: Understanding environmental and social impact, ensuring sustainable practices.
  9. Human Resources Management: Understanding HR best practices, ensuring effective talent management.
  10. Industry Knowledge: Staying up-to-date with industry trends, developments, and best practices.
  11. Communication and Interpersonal Skills: Effective communication, building strong relationships with stakeholders.
  12. Leadership and Collaboration: Demonstrating leadership, building collaborative teams, driving business growth.
  13. Innovation and Entrepreneurship: Encouraging innovation, driving entrepreneurship, and business growth.
  14. Global Perspective: Understanding global markets, trends, and best practices.
  15. Continuous Learning: Committing to ongoing learning, professional development, and staying current with industry trends.

By possessing these technical skills, African Boards of Directors can drive business growth, ensure effective governance, and create long-term value for stakeholders.


Manufacturing.jpg
Risk Considerations:
 
  1. Regulatory and Compliance Risks: Evolving regulations, licensing issues, and product standards.
  2. Supply Chain Disruptions: Raw material shortages, logistics challenges, and supplier insolvency.
  3. Market and Competition Risks: Intense competition, market saturation, and changing consumer preferences.
  4. Operational Risks: Equipment failures, accidents, and maintenance challenges.
  5. Currency and Economic Risks: Currency fluctuations, inflation, and economic instability.
  6. Security Risks: Theft, vandalism, and sabotage.
  7. Environmental and Social Impact: Environmental degradation, community displacement, and social unrest.
  8. Talent Management Risks: Attracting and retaining skilled employees.
Mitigants:
 
1. Regulatory and Compliance Risks:
    – Engage with regulators and industry associations.
    – Ensure compliance with regulatory requirements.
 
2. Supply Chain Disruptions:
    – Diversify suppliers and develop contingency plans.
    – Implement supplier risk management programs.
 
3. Market and Competition Risks:
    – Differentiate through innovative products and services.
    – Focus on customer retention and loyalty programs.
 
4. Operational Risks:
    – Implement robust safety protocols and emergency response plans.
    – Invest in employee training and development.
 
5. Currency and Economic Risks:
    – Diversify revenue streams across countries and currencies.
    – Implement hedging strategies to manage currency risk.
 
6. Security Risks:
    – Implement robust security measures, including surveillance and access controls.
    – Engage with local authorities and security experts.
 
7. Environmental and Social Impact:
    – Develop and implement environmental and social impact assessments.
    – Engage with local communities and stakeholders.
 
8. Talent Management Risks:
    – Offer competitive compensation and benefits packages.
    – Develop training and development programs.
 
 
Additional Mitigants:
 
1. Develop a comprehensive risk management framework.
2. Conduct regular risk assessments and reviews.
3. Implement a robust compliance program.
4. Foster a culture of innovation and continuous improvement.
5. Develop strategic partnerships and collaborations.
6. Engage with stakeholders, including customers, investors, and regulators.
 

power.jpg
Risk Considerations:
 
  1. Regulatory and Political Risks: Evolving regulatory environments, political instability, and government interventions.
  2. Infrastructure Risks: Aging infrastructure, transmission and distribution losses, and capacity constraints.
  3. Fuel and Energy Supply Risks: Dependence on imported fuels, price volatility, and supply chain disruptions.
  4. Operational Risks: Accidents, equipment failures, and maintenance challenges.
  5. Environmental and Social Impact: Environmental degradation, community displacement, and social unrest.
  6. ]Financial Risks: Currency fluctuations, inflation, and revenue collection challenges.
  7. Cybersecurity Threats: Data breaches, hacking, and ransomware attacks.
 
Mitigants:
 
1. Regulatory and Political Risks:
    – Engage with governments and regulators to shape policy and advocate for favorable regulations.
    – Ensure compliance with regulatory requirements through robust internal controls.
 
2. Infrastructure Risks:
    – Invest in modernizing and expanding infrastructure.
    – Implement maintenance and asset management programs.
 
3. Fuel and Energy Supply Risks:
    – Diversify fuel sources and energy supplies.
    – Implement hedging strategies to manage price volatility.
 
4. Operational Risks:
    – Implement robust safety protocols and emergency response plans.
    – Invest in employee training and development.
 
5. Environmental and Social Impact:
    – Develop and implement environmental and social impact assessments.
    – Engage with local communities and stakeholders to address concerns.
 
6. Financial Risks:
    – Diversify revenue streams across countries and currencies.
    – Implement hedging strategies to manage currency risk.
 
7. Cybersecurity Threats:
    – Implement robust cybersecurity measures, including threat detection and incident response plans.
    – Conduct regular security audits and penetration testing.
 
 
Additional Mitigants:
 
1. Develop a comprehensive risk management framework.
2. Conduct regular risk assessments and reviews.
3. Implement a robust compliance program.
4. Foster a culture of safety and responsibility.
5. Develop strategic partnerships and collaborations.
6. Engage with stakeholders, including local communities, investors, and customers.
 

By understanding these risk considerations and implementing effective mitigants, boards in the power sector in Africa can minimize risks and drive long-term success.


Africa.png

Risk Considerations:

  1. Cybersecurity Threats: Data breaches, hacking, and ransomware attacks.
  2. Regulatory and Compliance Risks: Evolving regulations, licensing issues, and data protection concerns.
  3. Infrastructure Risks: Power outages, internet connectivity issues, and infrastructure gaps.
  4. Talent Management Risks: Attracting and retaining skilled employees in a competitive market.
  5. Intellectual Property Risks: Protecting proprietary technology and innovations.
  6. Market and Competition Risks: Intense competition, market saturation, and rapidly changing technologies.
  7. Currency and Economic Risks: Currency fluctuations, economic instability, and inflation.
Mitigants:
 
1. Cybersecurity Threats:
    – Implement robust cybersecurity measures, including threat detection and incident response plans.
    – Conduct regular security audits and penetration testing.
 
2. Regulatory and Compliance Risks:
    – Engage with regulators and industry associations to shape policy and advocate for favorable regulations.
    – Ensure compliance with regulatory requirements through robust internal controls.
 
3. Infrastructure Risks:
    – Invest in backup power systems and redundancy measures.
    – Partner with reliable infrastructure providers.
 
4. Talent Management Risks:
    – Offer competitive compensation and benefits packages.
    – Develop training and development programs.
 
5. Intellectual Property Risks:
    – Develop and implement robust IP protection policies.
    – Conduct regular IP audits.
 
6. Market and Competition Risks:
    – Differentiate through innovative products and services.
    – Focus on customer retention and loyalty programs.
 
7. Currency and Economic Risks:
    – Diversify revenue streams across countries and currencies.
    – Implement hedging strategies to manage currency risk.
 
Additional Mitigants:
 
1. Develop a comprehensive risk management framework.
2. Conduct regular risk assessments and reviews.
3. Implement a robust compliance program.
4. Foster a culture of innovation and continuous improvement.
5. Develop strategic partnerships and collaborations.
6. Engage with stakeholders, including customers, investors, and regulators.
 
By understanding these risk considerations and implementing effective mitigants, boards in the technology sector in Africa can minimize risks and drive long-term success.
 

pexels-photo-3207536.jpeg
Risk Considerations:
  1. Regulatory and Political Risks: Evolving regulatory environments, political instability, and government interventions.
  2. Operational Risks: Accidents, spills, equipment failures, and security breaches.
  3. Environmental and Social Impact: Environmental degradation, community displacement, and social unrest.
  4. Economic and Market Risks: Volatile oil prices, currency fluctuations, and market demand shifts.
  5. Security Risks: Terrorism, piracy, and civil unrest.

Mitigants:

1. Regulatory and Political Risks:
    – Engage with governments and regulators to shape policy and advocate for favorable regulations.
    – Ensure compliance with regulatory requirements through robust internal controls.
2. Operational Risks:
    – Implement robust safety protocols and emergency response plans.
    – Invest in modernizing and maintaining infrastructure.
3. Environmental and Social Impact:
    – Develop and implement environmental and social impact assessments.
    – Engage with local communities and stakeholders to address concerns.
4. Economic and Market Risks:
    – Diversify revenue streams and investments.
    – Implement hedging strategies to manage price volatility.
5. Security Risks:
    – Implement robust security measures, including surveillance and access controls.
    – Engage with local authorities and security experts to stay informed.
 
Additional Mitigants:
 
1. Develop a comprehensive risk management framework.
2. Conduct regular risk assessments and reviews.
3. Implement a robust compliance program.
4. Foster a culture of safety and responsibility.
5. Develop strategic partnerships and collaborations.
6. Invest in employee training and development.
7. Engage with stakeholders, including local communities, investors, and customers.
 
By understanding these risk considerations and implementing effective mitigants, boards in the oil and gas sector in Africa can minimize risks and drive long-term success.

asc.jpg

Digital transformation is increasingly essential for federal and state governments in Africa due to its potential to address key challenges and drive socio-economic development. 

1. Improved Service Delivery and Accessibility

Enhanced Public Services: Digital transformation allows governments to improve the quality, efficiency, and reach of public services, making them more accessible to citizens, even in remote areas. E-governance platforms enable citizens to access services like healthcare, education, tax filing, and social security benefits online.

Citizen-Centric Services: By digitizing services, governments can shift towards a more citizen-focused approach, reducing bureaucratic delays and eliminating inefficiencies in service delivery. Online portals and mobile applications offer round-the-clock access to services, cutting down on time and travel costs.

2. Increased Transparency and Accountability

Fighting Corruption: Digital systems reduce human intervention, decreasing opportunities for corruption. E-procurement, for example, can automate the bidding process, ensuring fairness and transparency in government contracts.

 Real-Time Monitoring: Digital tools provide governments with real-time data on projects, budgets, and public services, increasing oversight and enabling better decision-making. It also allows citizens to track government initiatives, improving trust between the public and the state.

  1. Economic Growth and Innovation

Stimulating the Digital Economy: A digital transformation strategy can help governments foster the growth of tech ecosystems and digital industries. This creates new jobs, attracts foreign investment, and opens up new economic opportunities, especially in sectors like fintech, e-commerce, and mobile communications.

Support for SMEs: Digital platforms help small and medium-sized enterprises (SMEs) gain access to markets, government contracts, and financial services, boosting local economies and reducing poverty.

4. Efficiency in Governance and Cost Reduction

Streamlining Government Operations: Digital systems can help governments reduce costs by automating routine tasks, improving workflow management, and minimizing paperwork. This is crucial for governments with limited budgets.

Resource Optimization: Digital technologies, such as cloud computing, data analytics, and AI, enable governments to optimize resource allocation, ensuring that scarce resources like healthcare, water, and electricity are efficiently distributed based on real-time demand.

5. Inclusion and Bridging the Digital Divide

Access to Underserved Communities: In many African countries, large portions of the population live in rural areas with limited access to government services. Digital platforms, powered by mobile technology, can bring essential services to these communities, helping to bridge the gap between urban and rural areas.

Empowering Marginalized Groups: Digital transformation can empower women, youth, and other marginalized groups by providing them access to education, employment, and financial services through digital platforms.

  1. Data-Driven Decision Making

Enhanced Policy Making: Digital tools provide governments with valuable data and insights to improve policy design and implementation. With real-time data analytics, governments can make informed decisions, track progress, and adjust strategies based on measurable outcomes.

Disaster and Crisis Management: Digital technologies help governments respond more effectively to natural disasters, public health crises, and emergencies by using early warning systems, data collection tools, and communication platforms to coordinate efforts and allocate resources.

7. Building Resilience and Adaptability

 Resilience to External Shocks: Digital transformation enhances government resilience in times of crisis. For example, during the COVID-19 pandemic, many African governments that had invested in digital infrastructure were better able to transition to remote work, implement digital learning, and ensure continuous delivery of services.

Adaptability to Technological Change: As new technologies like artificial intelligence, blockchain, and the Internet of Things (IoT) continue to evolve, digital transformation positions African governments to adopt these innovations and integrate them into governance processes.

8. Boosting Public Participation and Engagement

increased Civic Engagement: Digital platforms, such as social media, mobile apps, and websites, allow citizens to engage with their governments more easily, participate in policy discussions, and provide feedback. This fosters a more open and participatory governance model.

Inclusive Policy Development: Governments can use digital tools to collect input from citizens, ensuring that policies reflect the needs of the population. Public consultations can be conducted online, making the process more inclusive and reaching a wider audience.

9. Enhancing National Security and Data Protection

Cybersecurity and Data Management: As governments digitize, they need to strengthen their cybersecurity infrastructure to protect sensitive data, prevent cyberattacks, and ensure the integrity of their systems. Digital transformation includes investing in secure, reliable digital infrastructure to safeguard national interests.

Cross-Border Cooperation: Digital transformation also enables better coordination with neighboring countries on issues like border security, regional trade, and combating transnational threats such as terrorism and trafficking.

10. Supporting Sustainable Development Goals (SDGs)

Accelerating SDG Progress: Many African governments are committed to achieving the UN Sustainable Development Goals (SDGs). Digital transformation is a key enabler of this, particularly in areas like education (SDG 4), healthcare (SDG 3), economic growth (SDG 8), and reduced inequalities (SDG 10).

Environmental Sustainability: Digital tools can support sustainability efforts by improving environmental monitoring, energy efficiency, and natural resource management.

In conclusion, digital transformation is not just an option but a necessity for African federal and state governments. It enables more efficient governance, fosters economic growth, enhances public trust, and improves the quality of life for citizens across the continent.

FURTHER ENQUIRIES, CALL: +234 812 902 3329 (Charity) | +234 802 056 5056 (Ayo)


Find us

35, Glover Road, Ikoyi, Lagos Nigeria.
info@hpierson.com
+234-8111661212 (WhatsApp)