Some stakeholders present at the 4th series of the IFC Family Governance Workshop
Family-owned businesses in Ghana and across Africa have been urged to strengthen governance structures and institutionalise succession planning to enhance their long-term competitiveness, preserve wealth across generations and increase their contribution to economic growth.
The call was made at the fourth International Finance Corporation (IFC) Family Governance Workshop in Accra, where business owners, executives and governance experts examined strategies for ensuring business continuity, leadership transition and sustainable value creation.
Participants observed that family enterprises remain the backbone of Africa’s private sector, accounting for a substantial share of business activity and employment.
However, many struggle to survive beyond the founding generation due to weak governance frameworks, informal management systems and the absence of structured succession plans.
The workshop explored key issues including governance frameworks, ownership transition, succession planning, next-generation leadership development, liquidity planning, philanthropy and the use of family charters to guide decision-making and preserve family values across generations.
Speaking at the event, IFC’s Environmental, Social and Governance (ESG) Advisory Lead for Africa, Moez Miaoui, described succession planning as the single most significant challenge confronting family-owned businesses worldwide.
“In any family business setting, succession is the most critical challenge that the family would face and the business would face,” he said.
According to him, founders often retain control of their businesses for prolonged periods without adequately preparing successors, while many are reluctant to relinquish leadership, exposing businesses to operational and strategic risks when transition eventually becomes inevitable.
Mr. Miaoui stressed that sustainable family businesses require a clear separation between family governance and corporate governance.
He explained that establishing a family council, alongside a professional board of directors, enables families to address issues such as succession, education of future leaders, family values, philanthropy and ownership matters without interfering in the day-to-day management of the business.
He said applying sound corporate governance principles across family, ownership and business structures enhances resilience, reduces conflict and improves the prospects of successful intergenerational transitions.
IFC Senior Country Officer, Yewande Giwa, said family businesses are uniquely positioned to generate both economic and social value because they typically take a long-term view of investment and community development.
“When you are a family business, you are not just thinking about your bottom line. You are thinking about how do I influence my community, how do I make a difference, how do I create more jobs?” she said.
She noted, however, that many family-owned enterprises continue to rely on informal governance arrangements despite their growth ambitions.
Ms. Giwa urged business owners to establish competent boards or advisory committees and ensure leadership appointments are based on merit, qualifications and experience rather than family relationships alone.
She said putting the right governance structures in place would improve operational efficiency, strengthen accountability, enhance productivity and position businesses for expansion.
Reaffirming IFC’s commitment to private-sector development, the corporation’s Senior Country Manager for Ghana and Liberia, Kyle Kelhofer, said the sustainability of family businesses is critical to the resilience of the broader economy.
He noted that businesses with strong governance systems, professional management and well-planned succession strategies are better positioned to outlive their founders, protect employment, attract investment and create long-term value.
A Business Desk Report