New Challenges for the Boards in Frontier Markets

On 17 May 2023, Impact Boards EM hosted an online roundtable to discuss "New Challenges for the Boards in Frontier Markets". The video recording is available to view for our members on our website.

Frontier markets offer a diverse investment opportunity set, supported by attractive urbanisation and demographic benefits. Yet they represent only 1% of global stock market cap. Moreover, foreign investor participation remains low. Boards can play a major role in enabling companies in frontier markets to become attractive to foreign investors. 

Progress towards integrating better governance practices among frontier market companies is ongoing. However, it will take time to create sustainable change. Our panellists provided some helpful suggestions for new and prospective board directors in frontier market companies. Patience will be a virtue, particularly for directors not familiar with the country’s culture. Persistence is key; be ready to get hands-on as frontier markets are still nascent in setting their corporate governance strategy. Be culturally sensitive; boards’ roles are critical in delivering the necessary changes, but a collaborative approach is needed to produce the best results. Therefore, set the right tone and culture where opinions can be shared, and decisions can be challenged in a collaborative manner.

Detailed summary highlighting the key topics raised by the panellists and moderators is available to view here.

New Challenges for the Boards in Frontier Markets_170523_Final.docx

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