Privatization of Firms in Rwanda: The Role of Corporate Governance Practices

Abstract

This chapter assesses the applicability of corporate governance practices in Rwandan privatized firms. A case study was conducted with a single cement manufacturing firm, findings from which reveal gaps in company-level corporate governance practices in matters relating to minority shareholder controls, board composition, executive reviews, disclosures, and transparency. Some of the gaps identified are related to institutional and regulatory frameworks. The findings of the study have theoretical as well practical implications for all stakeholders of corporate governance in Rwanda, that is, policymakers, corporate governance agencies, and company directors. At the firm level, there is a dire need to address the identified gaps to strengthen corporate governance best practices with regard to existing standards, while at the government level, laws could be revised to strengthen enforcing mechanisms.