New survey highlights corruption and conflict in SADC countries

The research is based on responses received from 26 companies listed on the Johannesburg Stock Exchange (JSE). Most of the respondents were company secretaries, compliance officers or risk managers.

Angola, Zimbabwe and the Democratic Republic of the Congo (DRC) were considered by respondents to be the three most corrupt SADC countries across a wide variety of aspects, including its business environment, the regulatory environment and law enforcement.

The three top performers in terms of an ethical business environment are listed as Mauritius, Botswana and Lesotho.

Daniel Malan, director of the Centre for Corporate Governance in Africa at the University of Stellenbosch Business School (USB) says: "The survey highlights the fact that conflict and corruption affect each other, and that the abundance of natural resources in some countries could be viewed as a curse. This is because they become the focal point of sporadic violence and political upheaval, which in turn exacerbates the downward spiral caused by corruption, poverty, disease and an inefficient government."

This finding is particularly illustrated through the case studies of Angola and the DRC, says Malan. Although they both appear at the bottom of the scale, Angola has had consistent improvement since 2000, specifically with regards to safety and the rule of law. Conversely, the DRC remains unstable with various rebel groups and militias still active in the country.

A few key findings from the survey:

• Botswana, Namibia and Mauritius are considered to have the most effective regulatory environments;
• South Africa, Namibia and Mauritius scored highest in terms of compliance with anti-money laundering regulations; and
• While business is generally easier and cheaper to do in South Africa than in the rest of the SADC region, bribery and corruption are perceived to be especially prevalent in the granting of South African government contracts and procurement tenders.

For more information contact Daniel Malan at az.ca.bsu@nalam.leinaD or 083 5611292.