The Impact of implementing the Public Entities Corporate Governance Act (PECG Act) Chapter 10:31 by State Owned Enterprises (SOEs) in Zimbabwe.




Corporate governance, State Owned Enterprises, Corporate Governance Reform, Public Entities Corporate Governance Act, Accountability and Transprarency


The study sought to determine the impact of the Public Entities Corporate Governance Act Chapter 10:31(PECG Act ). The Act is the main piece of legislation governing corporate governance practices for State Owned Enterprises in Zimbabwe. In this view, the study adopted a mixed-methods approach in which pragmatism philosophy was applied. A  convergent parallel design was used in which data was gathered using a structured questionnaire and an interview guide. The target population consisted of top and middle management, board members, board chairpersons, and CEOs of SOEs found in  Zimbabwe. Using the sampling procedure developed by Krejcie and Morgan (1970), a sample size of 351 individuals was determined for quantitative data, and sixteen (16) interviews were done until saturation was reached. The research employed stratified random sampling for sampling respondents for quantitative data and purposive sampling was used for sampling respondents for qualitative data. SPSS version 23  was used to analyse quantitative data, whilst NVivo version 12 was used to analyse qualitative data. The main impact of the PECG Act was that it fosters accountability, transparency, and responsibility and encourages strategic planning for SOEs. The research also confirmed that reforms on restrictions on the remuneration of board members(RRORB) have a positive effect on corporate governance practices in SOEs, and reforms on dismissal and resignation (RDRBM) of board members lead to best corporate governance in SOEs. The study recommended that responsible authorities should make strict enforcement to comply with the dictates of the PECG Act. The study had a limitation that results from broad SOE categories may not be generalised to specific SOE categories.


Download data is not yet available.


Abang’a, A.O., Tauringana, V., Wang’ombe, D. and Achiro, L.O. (2022), "Corporate governance and financial performance of state-owned enterprises in Kenya", Corporate Governance, Vol. 22 No. 4, pp. 798-820.

Addink, G.H. (2018) “Good Governance: Importance in Practice, Theories and Definitions,” Halu Oleo Law Review, 1(1), p. 1. Available at:

Balbuena, S. S. (2014). State-owned Enterprises in Southern Africa: A Stocktaking of Reforms and Challenges (No. 13). OECD Publishing.

Boroma V. (2020). Corporate Governance and State Entities decay in Zimbabwe. Harare: Zimbabwe Independent. Available at

Bussin, M. H., & Carlson, C. (2020). Relationship between executive pay and companyfinancial performance in South African state-owned entities. SA Journal of Human Resource Management, 18(1),1-11. Available at

Butler R, Butler M. (2010).Assigning for IT Governance in South African Enterprises. South African Journal of Business Management, 41(3), 35 -42. Available at

David, C. Y. N., Chang, Y. W., & Low, S. C. (2021). Corporate Governance Mechanisms with Firm Performance: A Study on Malaysia's and Hong Kong's Real Estate Investment Trust (REITs) Public Listed Companies. Journal of Governance Risk Management Compliance and Sustainability, 1(1), 62-75. Available at

Hilton, S.K. and Arkorful, H. (2021), "Remediation of the challenges of reporting corporate scandals in governance", International Journal of Ethics and Systems, Vol. 37 No. 3, pp. 356-369. Available

Hu, H.W. and Alon, I. (2014), "Are Chinese CEOs Stewards or Agents? Revisiting the Agency–Stewardship Debate", Emerging Market Firms in the Global Economy (International Finance Review, Vol. 15), Emerald Group Publishing Limited, Bingley, pp. 255-277. Available at

Kesieman, B.S. and Thakhathi, A. (2022), "Preserving State-owned Enterprises in South Africa: Views and Insights from Business Rescue Practitioners in the Commercial Field of Action", Thakhathi, A. (Ed.) Transcendent Development: The Ethics of Universal Dignity (Research in Ethical Issues in Organizations, Vol. 25), Emerald Publishing Limited, Bingley, pp. 55-78. Available at

Mahadeo, J.D. and Soobaroyen, T. (2012), "Corporate Governance Implementation in an African Emerging Economy: The Case of State-Owned Entities", Tauringana, V. and Mangena, M. (Ed.) Accounting in Africa (Research in Accounting in Emerging Economies, Vol. 12 Part A), Emerald Group Publishing Limited, Bingley, pp. 227-254.Available at

Manuere, F., Marima, N. E., & Muzviyo, S. (2019). A framework for Promoting Good governance of Stakeholders in Zimbabwe local authorities: The case of Harare Municipality. Greener Journal of Social Sciences.9(1),1-11 Available

Marimuthu, F., & Kwenda, F. (2019). The relationship between executive remuneration and financial performance in South African State-owned entities. Academy of Accounting and Financial Studies Journal; Vol. 23, Issue 4. Available at

Miles, S. (2017), "Stakeholder Theory Classification, Definitions and Essential Contestability", Stakeholder Management (Business and Society 360, Vol. 1), Emerald Publishing Limited, Bingley, pp. 21-47.Available at

Mukonza, R. M., & Mukonza, C. (2015). Implementation of green economy policies and initiatives in the City of Tshwane. Journal of Public Administration, 50(1), 90-107. Available at

Munyede, P. (2021). Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and Challenges. Journal of Contemporary Governance and Public Policy, 2(1), 67-78. Available at

Mutize, M., & Tefera, E. (2020). The Governance of State-Owned Enterprises in Africa: an analysis of selected cases. Journal of Economics and Behavioural Studies, 12(2) (J), 9-16.

Nyamwanza, T. (2014). Strategy implementation for survival and growth among small to medium-sized enterprises (SMES) in Zimbabwe (Doctoral dissertation, Midlands state university).

Nyoni, T., & Bonga, W. G. (2017). Towards factors affecting delays in construction projects: A case of Zimbabwe. Dynamic Research Journals' Journal of Economics and Finance (DRJ-JEF), 2(1), 12-28. Available at SSRN:

OECD. (2018). State Owned Enterprises and Corruption. What are the risks and what can be done? Paris: OECD.

Oman, C. P. (2001). Corporate governance and national development. OECD Development Centre Working Papers, No. 180, OECD Publishing, Paris.

Puni, A., & Anlesinya, A. (2020). Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147-169.

Sibug, Y. R. (2023). Role of Calamba City Local School Board in Good Governance. Journal of Governance Risk Management Compliance and Sustainability, 3(1), 45-57.


Article Metrics


October 31, 2023

Citation Check

How to Cite

Mthombeni, A., Obert, S. ., Rangarirai, M. ., & Masenya, M. . (2023). The Impact of implementing the Public Entities Corporate Governance Act (PECG Act) Chapter 10:31 by State Owned Enterprises (SOEs) in Zimbabwe. Journal of Governance Risk Management Compliance and Sustainability, 3(2), 1–16.



Research Articles

Article Index