DSE, IIA join forces to strengthen corporate governance
DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) and the Institute of Internal Auditors (IIA) Tanzania have signed a five-year Memorandum of Understanding (MoU) to strengthen corporate governance, risk management and internal controls, while promoting ESG standards and investor confidence.
IIA Tanzania President Jonathan Ngoma said the partnership would combine both institutions’ expertise to improve accountability and organisational performance.
“Both institutions share an interest in promoting responsible management, strong boards, effective oversight and proper use of resources. Internal auditors help organisations manage risks, strengthen controls and achieve their objectives,” he said.
He added that the partnership would enable the institutions to undertake joint research to identify weaknesses in corporate governance and recommend measures that could improve company performance.
He identified corporate governance, risk management and internal controls as key cooperation areas, saying weaknesses could undermine business performance
Research will also examine factors affecting profitability, dividends, job creation and tax contributions, while exploring ways to attract local and foreign investors.
Moreover, the initiative is further expected to support the development of publications and corporate governance assessment tools, including a possible corporate governance index to help assess and compare companies’ performance in governance matters.
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DSE’s Chief Business Development Officer Mr Emmanuel Nyalali said the exchange’s responsibility extended beyond helping companies raise capital to ensuring they operated in accordance with good corporate governance principles.
He said the collaboration would also cover sustainability issues, particularly environmental protection, social responsibility and governance, commonly referred to as ESG standards.
On environmental responsibility, he said listed companies were required to consider how their activities and use of resources affected the environment, including proper waste management and avoiding practices that cause environmental degradation.
“Companies are increasingly expected to consider the environmental impact of their operations, their contribution to society and the quality of their governance systems, alongside conventional financial performance,” he said adding internal auditors has an important role in assessing whether companies complied with the standards, alongside external auditors, making continuous training necessary.
