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Erudite AfricaCenter of Excellence
← Corporate Governance and Ethics

What corporate governance is

Module 01 / 5 · 50 min · Free preview

Understand why someone must watch the people who run a company, who those watchers are, and why governance failures hurt Ethiopian banks so badly.

In this module you will learn to

  • Define corporate governance and explain the agency problem in plain words
  • Name the main stakeholders of an Ethiopian bank or company and what each expects
  • Separate the job of the board from the job of management
  • Describe the core ideas of the OECD and Basel governance principles
  • Explain how weak governance has harmed banks and why the NBE tightened the rules in 2024

Built on

  • Erudite Africa training module: Ethiopian Context, topic 4.a Corporate Governance and Ethics, Level 1 Beginner (October 2026)
  • NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/89/2024 and SBB/91/2024
  • Commercial Code of Ethiopia; Capital Market Proclamation No. 1248/2021; Banking Business Proclamation No. 1360/2025; NBE Proclamation No. 1359/2025
  • ECMA Directive No. 980/2024 on capital market service providers
  • A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
  • G20/OECD Principles of Corporate Governance and the Basel Committee's corporate governance principles for banks

Examples and organizations are fictional. Apply your own organization's approved policies.