Family-owned businesses in Ghana and across Africa need to strengthen their governance structures. They must also institutionalize succession planning. These actions will enhance long-term competitiveness and preserve wealth across generations. It will also increase their contribution to economic growth.
This call came from the fourth International Finance Corporation (IFC) Family Governance Workshop in Accra. Business owners, executives, and governance experts gathered there. They examined strategies for business continuity, leadership transition, and sustainable value creation. Participants noted that family enterprises form the core of Africa’s private sector. They account for a large share of business activity and employment.
Many family businesses struggle past their founders due to weak governance frameworks. Informal management systems and a lack of structured succession plans also contribute to this struggle. This trend limits their potential contribution to Ghana's GHS 1.3 trillion economy. Improving governance could unlock significant growth and job creation. This aligns with broader efforts to formalize the economy and increase private sector investment.
Moez Miaoui, IFC’s Environmental, Social, and Governance (ESG) Advisory Lead for Africa, described succession planning as the most significant challenge globally. He stated, “In any family business setting, succession is the most critical challenge that the family would face and the business would face.” Founders often keep control for too long. They do not adequately prepare successors. This exposes businesses to risks when leadership changes inevitably occur.
Sustainable family businesses require a clear separation between family and corporate governance. Mr. Miaoui explained that a family council and a professional board of directors help. This structure allows families to handle succession, education, and values without interfering in daily business. Applying strong corporate governance principles across all structures improves resilience. It also reduces conflict and enhances successful intergenerational transitions. Yewande Giwa, IFC Senior Country Officer, added that family businesses are uniquely positioned to create both economic and social value. They often take a long-term view of investment.
Ms. Giwa observed that many family enterprises still use informal governance despite their growth ambitions. She urged owners to establish competent boards or advisory committees. These appointments should be based on merit and experience, not just family ties. Such structures improve operational efficiency, accountability, and productivity. They also position businesses for expansion. Kyle Kelhofer, IFC Senior Country Manager for Ghana and Liberia, stressed the importance of sustainable family businesses. He said they are critical to the broader economy's resilience. Businesses with strong governance and planned succession better survive their founders. They also protect employment, attract investment, and create long-term value in Ghana.