IFC pushes governance reform as 95% of family firms fail by third generation
The International Finance Corporation has convened its third Family Governance Workshop in Ghana, intensifying efforts to help local family-owned enterprises navigate generational transitions and secure long-term sustainability.
The session, organised under IFC’s Integrated Environmental, Social and Governance Advisory programme with support from the Swiss State Secretariat for Economic Affairs, brought together founders and next-generation leaders to examine the governance structures required for multi-generational growth.
Family-owned firms are widely regarded as a pillar of Ghana’s economy, contributing significantly to employment, innovation and community development. However, global data indicate that up to 95 per cent of such businesses fail to survive beyond the third generation, often due to succession gaps, weak governance systems, unmanaged expansion and unresolved internal conflicts.
The workshop focused on strengthening the foundations of continuity by aligning family values with professional business systems, preparing future leaders early, establishing clear conflict resolution mechanisms and building governance frameworks capable of sustaining both the enterprise and the family behind it.
Kyle Kelhofer, IFC Senior Country Manager for Ghana and Liberia, said the resilience of family businesses was central to national economic stability. “Family-owned businesses are not just important to Ghana’s economy. They are critical to shaping legacies that endure across generations,” he said.
He emphasised that leadership transitions require deliberate planning and shared commitment. “Navigating generational transitions requires preparing next generations to lead, supporting incumbents to let go, and ensuring succession happens smoothly and intentionally. This improves operations, preserves wealth, and even enhances access to finance,” he continued.
Participants ranged from first-generation founders to third-generation executives, reflecting the diversity of family enterprises operating in the country. Discussions highlighted recurring concerns, including succession anxieties, preserving entrepreneurial spirit, maintaining family harmony and balancing business imperatives with family expectations.
Lead facilitator Moez Miaoui drew on international experience to illustrate that such challenges transcend borders. “Whether you are working with a first- or fifth-generation business, the patterns are remarkably similar. Family governance is fundamental to sustaining enterprises that drive job creation across Europe, Africa, South Asia, and East Asia,” he explained.
He described succession as a shared responsibility between outgoing and incoming leaders. “Successors need to convince you they are ready, and you need to convince them they want to take over. It is a two-way street. Passion cannot be forced; it must be cultivated and transferred authentically.”
Mr Kelhofer expressed confidence in the potential of Ghanaian family enterprises to expand beyond domestic markets. “Ghana has outstanding family enterprises that could become major regional players and cross-sector champions. They reach a point where they can either remain small or scale, creating opportunities for growth, investment, and legacy,” he said.
He likened governance development to continuous improvement. “Like going to the gym, governance improvement is something we work on regularly. Feedback shows participants keep returning, demonstrating the value of these sessions.”
The workshop blended expert facilitation with peer-to-peer learning, enabling participants to exchange practical approaches to succession planning, conflict resolution, wealth preservation and governance reform.
Reaffirming IFC’s long-term engagement, Mr Kelhofer said: “We stand ready to provide tailored advisory solutions and investment tools to help family businesses build stronger, more resilient enterprises for generations to come. Our mission is to help these businesses achieve beyond what they currently imagine, potentially becoming leading local corporates and even global players.”