TIG Post

Tag: TheBoardroom Africa

  • Ghana’s corporate boards see women representation rise by 12% – Report

    Ghana’s corporate boards see women representation rise by 12% – Report

    Ghana has shown significant advancements in its pursuit of gender equality within corporate boardrooms, particularly among companies listed on the Ghana Stock Exchange according to the 2023 Board Diversity Index, a collaborative effort between TheBoardroom Africa (TBrA) and Alitheia Capital.

    The report reveals that the number of women holding positions in the boardrooms of Ghanaian-listed companies has experienced a noteworthy 12% increase, rising from 67 in 2022 to 75 in 2023.

    In a statement issued by TheBoardroom Africa, it emphasized that Ghana, where women make up nearly half of the workforce, has achieved an impressive 12% growth rate in gender parity within boardrooms in the current year.

    While this progress is commendable and encouraging, it also underscores the ongoing imperative for continued and unwavering efforts to champion gender equality in leadership roles.

    The report’s key findings offer a comprehensive overview of gender diversity within corporate boardrooms in Ghana, highlighting the substantial impact of women chairs on boardroom diversity.

    “Companies led by women as Chairpersons exhibit significantly higher boardroom diversity, with 80% of them having 30% or more women on their boards, while only 26% of companies with male Chairs reach this threshold,” it said.

    As per the report, there has been a notable increase in the representation of women in C-suite or Chair positions within Ghana. Women now constitute 14% of Chairs, 12% of CEOs/MDs, 22% of CFOs, and 13% of COOs on the boards of listed companies in Ghana.

    While the number of Chairs, CFOs, and COOs has seen a positive growth of 2%, 5%, and 7%, respectively, there was a slight decrease of 1% in the number of CEOs/MDs compared to the figures from 2022.

    The report also highlights a positive trend indicating a rising number of companies with women on their boards. An encouraging 89% of listed companies now have at least one woman on their board, as opposed to 88% in the preceding year.

    Sectors that directly engage with consumers, such as advertising & communications, fast-moving consumer goods, and telecommunications, notably excel in gender diversity, with 100% of their companies boasting over 30% women directors.

    The financial services sector stands out in terms of the highest number of women board directors in Ghana, with 34 women directors, accounting for 45% of the total, as per the report.

    On the flip side, boards composed entirely of men are decreasing in prevalence, with the proportion of listed companies without any women on their boards decreasing from 12% in 2022 to 11% in 2023.

    Speaking on the report, Founder and CEO of TheBoardroom Africa, Marcia Ashong said, “While acknowledging the progress made, Ghanaian corporate boards possess the potential to drive enduring change by strategically embracing key factors that fuel progress toward gender diversity. These factors include fostering an inclusive culture and securing an unwavering commitment from top leadership to prioritise and champion gender diversity.”

    She emphasized that the importance of this commitment is further emphasized by the findings of the 2023 report, which demonstrate the significant impact of women chairs in promoting greater female representation on boards.

    “We remain steadfast in our commitment to ongoing collaboration with the Ghana Stock Exchange and other stakeholders to advance this vital agenda,” Marcia Ashong said.

    Meanwhile, Abena Amoah, the Managing Director of the Ghana Stock Exchange, emphasized that gender diversity is not only a matter of ethics but also a driving force for improved governance and enhanced stock performance. She further highlighted that compelling evidence supports the idea that companies that prioritize diversity across all leadership tiers are better equipped to make sound decisions, foster innovation, and, in the end, achieve more robust financial outcomes.

    “At the Ghana Stock Exchange, we see gender diversity as a fundamental component of responsible and sustainable business practices, and we are committed to supporting our listed companies in achieving greater diversity and, in turn, greater success,” she said.

    The 2023 Ghana Board Diversity Index report provides a comprehensive analysis of the current state of gender diversity in corporate boardrooms, identifies areas for growth and improvement, and serves as a call to action for all stakeholders—businesses, policymakers, and civil society—to accelerate progress toward gender equality in leadership.

    About The Boardroom Africa

    The Boardroom Africa (TBrA) is the largest regional network of female executives in Africa. Our goal is to improve access to board opportunities for women and accelerate the presence of women on boards by working with development finance institutions, private equity investors and companies to accelerate the appointment of women on boards and build a growing pipeline of board-ready women while inspiring and educating the business community on the power of diverse leadership.

    About Ghana Stock Exchange

    The Ghana Stock Exchange (GSE) was established in November 1990 with the mission to provide an efficient securities market for national economic development through access to capital and investment. Since then, GSE has facilitated the mobilisation of long-term capital by corporate bodies, businesses, and the government and provided a reliable platform for the trading of issued securities. There are three markets created under the GSE brand: the Main Market, Ghana Alternative Market (GAX) for SME’s and Ghana Fixed Income Market (GFIM) for trading of government and corporate bonds. For more information, visit
    www.gse.com.gh.

    About The Board Diversity Charter

    The Board Diversity Charter (BDC) is a joint initiative co-founded by TheBoardroom Africa (TBrA) and Alitheia Capital to raise awareness of diversity as a critical driver of success for business and society. Joining the charter signals an organisation’s commitment to developing and implementing initiatives that seek to build and maintain diversity and equality in the boardroom. The Charter’s current signatories (organisations that have already achieved 30% women in the boardroom) and pledge partners (organisations publicly committing to strive to achieve 30% women in the boardroom) include leading DFIs and organisations such as British International Investment, Norsad Capital, Woodside Africa Group, DEG, FCMB Bank and more. Companies interested in becoming a Board Diversity Charter Signatory or Pledge Partner can apply here.

  • Female representation on boards of GSE-listed companies still low

    Women hold only 25% of board seats and only 27% of non-executive director seats among the 35 businesses listed on the Ghana Stock Exchange in 2022, which is the same as in 2021.
    This information can be found in the 2022 Board Diversity Index Report, which TheBoardroom Africa and the Ghana Stock Exchange jointly released this week (GSE).

    These statistics, according to the report, show that efforts to promote gender diversity have stopped since the previous year.
    The survey also finds that corporate secretary, which is not a board-director function, is the most frequent position held by women across the majority of Ghana’s listed companies.

    Meanwhile, research shows that companies with 30 percent or more female non-executive directors are likely to result in an average of 15 percent increase of women in board chair and executive roles. “It is critical that women not only have a seat at the table but also occupy positions of leadership in these spaces to ensure continuous progress – and this has to be led by boards,” the report said.

    It noted that while an increasing number of Ghanaian companies are responding to the call for more gender-diverse boardrooms, the overall gender gap among senior executives still remains wide.

    Per the report, 61.5 percent of the industry sectors have more than 30 percent women on their boards – a 15.4 percent increase from 2021, and by international standards 30 percent is the minimum to reap the benefits of boardroom diversity.

    Having 30 percent women on boards, the report said, is the pivotal point at which minority voices become heard – it also represents the minimum target recognised by the Board Diversity Charter. However, this threshold remains a minimum target, not a ceiling. “While we recognise the companies meeting this standard, much remains to be done in working toward gender parity – the ultimate goal,” the report stated.

    Indeed, it noted that more than one-third (38 percent) of companies still have one or zero females on their boards, indicating a decrease by 9 percent from 2021. But that gap still needs to be bridged. In terms of sectors that have more women in their boardroom, the report said the advertising & communications, fast-moving consumer goods, mining/natural resources and telecommunications sectors have the highest number of women represented in the boardroom.

    However, in terms of the aggregate number of women directors, the financial services sector outperformed all with 45 percent of all female directors in GSE-listed companies being from the sector. Per the breakdown, women make up 12 percent of Chairs; 13 percent of CEOs/MDs; 17 percent of CFOs; and 6 percent of COOs on Ghana’s listed boards.

    The report observed that there has been an increase in the number of CEOs/MDs and CFOs by 1 and 13 percent respectively from 2021; however, there has been a decrease in the number of Chairs and COOs by 3 and 4 percent respectively from 2021. It also notes that almost one-third (32 percent) of Ghana’s listed companies have boards featuring at least 30 percent female board directors, an increase of 3 percent from 2021.

    Commenting on the methodology, Marcia Ashong, Founder and CEO of TheBoardroom Africa, said: “As we acknowledge the progress made so far, we remind stakeholders to continuously press for progress to solidify and expand on recent strides. We advocate that the Government of Ghana should encourage business leaders to have boardrooms that are fully representative of their stakeholders by signing the Board Diversity Charter; and also promote gender-conscious board appointments in state-owned companies to ensure that, as a country, we can fully reap the benefits of diversity”.

    Touching on the 2022 Board Diversity Index’s significance, Abena Amoah – incoming Managing Director of the Ghana Stock Exchange said: “The Ghana Stock Exchange is an integral part of the Ghanaian economy, and we aim to be at the forefront of sustainable, diverse and inclusive economic growth. We are delighted to see more and more companies respond to the call for diversity, and we further pledge to work with all stakeholders to ensure that Ghanaian boards are more inclusive and effective”.