In fulfilling our promise of contributing to the creation of institutional environment and capacity for business development in the country, we are promoting the building of the Institute of Directors of Mozambique (IoDmz)

1. Background:
As the Mozambican economy grows and more businesses come in, there has also been a growing need to put in place mechanisms to sustain institutional capacity to support the national economy in the age of globalization. Corporate governance, due to its effect on the performance of businesses to the benefit or loss of shareholders value, workers and their families, and government taxation, is also becoming relevant for the country.

With more businesses settling in, it means that more challenges are being put before the existing institutions, weak per se, supporting the economy. After talking to some local business leaders, we have understood that there is a need for a body dedicated to corporate governance affairs. They agree with GDI’s view that good corporate governance practices are essential for the country as they can boost the confidence of national and international investors, and setting up the Institute of Directors can be an appropriate institutional arrangement to be considered. Since then we contacted the International Finance Corporation /world Bank Group office in Maputo, the African Development Bank, and the Center for International Private Enterprise (CIPE), of Washington. These institutions reacted positively to the idea and are currently funding GDI to establish the IoDmz.

2. The role of IoDmz
The Institute of Directors of Mozambique will be:

• Helping in disseminating the values and principles, and encouraging best practices in corporate governance;
• Coordinating the voices of the business leaders in all matters concerning the profession, such as policy representation and, as well as, in establishing commonly agreed principles and frameworks in relation to the expectations of the wider stakeholder spectrum where they operate;
• Providing support to the local business leaders of both small and big businesses equipping them with necessary skills to meet new and growing challenges in corporate governance of both public and private sectors:
• Housing the business leaders meetings where they will share their experience, knowledge and expertise in corporate governance.

3. IoDmz funded project building involves:

• The development of a strategic business plan,
• The production of leaflets and a webpage,
• The conduct of the First National Conference on Corporate Governance
• And all other administrative expenses necessary to legally establish the IoDmz and to convey its first general assembly which will elect its board members.

Benjamin Pequenino
GDI Chief Executive