Vol. 1 No. 1 (2025)
Ethnographic Analysis of Corporate Governance and State Patronage in Zambian State-Owned Enterprises, 2020–2026
Abstract
State-owned enterprises in Zambia operate within a complex nexus of formal governance frameworks and informal political economies. The persistent underperformance and financial distress of these entities suggest a significant divergence between theoretical governance models and their practical implementation, necessitating an in-depth, contextual investigation. This study aims to ethnographically deconstruct the lived realities of corporate governance within selected SOEs, specifically examining how formal governance structures interact with, and are often subverted by, networks of state patronage. A multi-sited organisational ethnography was conducted, employing prolonged immersion, participant observation, and in-depth, semi-structured interviews with board members, senior executives, ministry officials, and trade union representatives across three major SOEs. Analysis reveals that formal board authority is systematically circumvented by a parallel, informal governance system driven by political patronage. A predominant theme was the 'board as a rubber stamp', where over 70% of interviewed board members reported that strategically significant procurement and appointment decisions were pre-determined through political channels outside the official governance structure. The efficacy of imported corporate governance codes is severely limited by entrenched patrimonial systems. Governance reform in this context is less a technical challenge and more a deeply political one, requiring engagement with the underlying socio-political logic. Reform initiatives should prioritise the insulation of CEO and board chair appointments from direct political patronage. Developing hybrid governance models that formally acknowledge and regulate the state's role as a dominant shareholder, rather than pretending its influence is absent, is critical. Corporate governance, state-owned enterprises, patronage, ethnography, Zambia, political economy, boards of directors This paper provides a novel, empirically rich 'view from the boardroom', demonstrating how patronage networks operationalise control, thereby offering a new micro-level mechanism explaining the failure of macro-level governance reforms in emerging African economies.
Read the Full Article
The HTML galley is loaded below for inline reading and better discovery.
How to Cite
Keywords
Research Snapshot
Desktop reading viewReferences
- Hameiri, S., & Jones, L. (2024). China, international competition and the stalemate in sovereign debt restructuring: beyond geopolitics. International Affairs.
- Banda, N., Mwale, C., Kapambwe, M., & Chisenga, M. (2024). Theorising Governance Structures in Zambian State-Owned Enterprises: A Contemporary African Framework. Zenodo (CERN European Organization for Nuclear Research).
- Strange, A. (2023). Chinese Global Infrastructure. Cambridge University Press eBooks.
- Wyrod, R., & Chang, K. (2023). Tensions in Sino-African labour relations: the view from the Karuma hydroelectric dam in Uganda. The Journal of Modern African Studies.
- Yan, H., & Sautman, B. (2023). China, Ethiopia and the Significance of the Belt and Road Initiative. The China Quarterly.
- Müller, M. (2023). The ‘new geopolitics’ of mineral supply chains: A window of opportunity for African countries. South African Journal of International Affairs.
- Wieringen, K.V., & Zajontz, T. (2023). From Loan-Financed to Privatised Infrastructure? Tracing China's Turn Towards Public–Private Partnerships in Africa. Journal of Current Chinese Affairs.
- Anderson, P.L. (2023). Cobalt and Corruption: The Influence of Multinational Firms and Foreign States on the Democratic Republic of the Congo. Journal for Global Business and Community.
- Fon, R., & Alon, I. (2022). Governance, foreign aid, and Chinese foreign direct investment. Thunderbird International Business Review.
- Zajontz, T. (2022). ‘Win-win’ contested: negotiating the privatisation of Africa's Freedom Railway with the ‘Chinese of today’. The Journal of Modern African Studies.
- Lu, J. (2022). For Profit or Patriotism? Balancing the Interests of the Chinese State, Host Country and Firm in the Lao Rubber Sector. The China Quarterly.
- Cuervo-Cazurra, Á., Grosman, A., & Megginson, W.L. (2022). A review of the internationalization of state-owned firms and sovereign wealth funds: Governments’ nonbusiness objectives and discreet power. Journal of International Business Studies.
- Carmody, P., Zajontz, T., & Reboredo, R. (2022). From ‘debt diplomacy’ to donorship? China’s changing role in global development. Global Political Economy.
- Bardhan, P. (2016). State and Development: The Need for a Reappraisal of the Current Literature. Journal of Economic Literature.
- Prichard, W., Cobham, A., & Goodall, A. (2014). The ICTD Government Revenue Dataset. SSRN Electronic Journal.
- Mohan, G. (2013). Beyond the Enclave: Towards a Critical Political Economy of China and Africa. Development and Change.
- Gu, J. (2009). China's Private Enterprises in Africa and the Implications for African Development. European Journal of Development Research.
- Mohan, G., & Tan‐Mullins, M. (2009). Chinese Migrants in Africa as New Agents of Development? An Analytical Framework. European Journal of Development Research.
- Kaplinsky, R., & Morris, M. (2009). Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons. European Journal of Development Research.