The Private Sector Federation (PSF) an umbrella body of private businesses in Rwanda is to establish the code of corporate governance.

This is a document that will provide rules and regulations to corporate companies about their duties and obligations.

The major aim of the code is to help improve systems and standards of governance in Rwandan companies. It will also bolster confidence in the capital market. 

Molly Rwigamba, the PSF Officer in charge of Capacity Building and Employment, said that the importance of the code of corporate governance is in building confidence in business community, preventing financial crisis and curbing corporate scandals.

"In order to achieve its objectives, PSF is also going to establish a centre of corporate governance which will provide induction training to new board members of member companies,” she added.

It was said that non-member companies and state owned corporations can benefit from this induction training for free.

The code of corporate governance comes to complement the code of business ethics which PSF is also set to establish soon.

Rwigamba also revealed that the federation is planning to introduce the prestigious directors’ club and membership.

"This will be limited to directors whose companies adhere to good corporate practices. The essence is to recognise companies that practice good corporate practices,” she explained.

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