CHAPTER FIVE 236 5. CORPORATE GOVERNANCE 5.1 Introduction: Challenges for corporate governance 631. Corporate governance is about the processes and structures used in directing and managing businesses and institutions. The major objective of corporate governance is to ensure that shareholders and their interests are protected and that value is increased. Corporate governance also establishes the processes, structures and mechanisms needed to ensure that managers and boards are accountable. 632. Awareness about the importance of corporate governance and its contribution to economic growth and development is increasing in African countries today. Countries are realising that improving corporate governance is necessary for attracting foreign direct investment (FDI) for economic growth and developmental efforts. This is true for Mauritius as well. 633. Mauritius has made significant progress with establishing the measures needed to strengthen corporate governance in the country, particularly in the financial and banking sectors. In order to create a business environment that will facilitate trade and investment, the country did an audit of its institutions and regulatory frameworks. Mauritius also established the Corporate Affairs Division. It designs, improves and maintains policy on corporate affairs, including financial and nonfinancial reporting, among others. It also advises on policy matters. The Corporate Affairs Division must also develop and promote a supportive corporate environment and a good corporate culture in order to improve the business potential of the country. Furthermore, the Corporate Affairs Division must periodically establish sound monitoring parameters and mechanisms to reassess the international situation and the needs of the corporate sector in Mauritius. 634. Mauritius has diversified its economy since independence from one based on agriculture to a growing industrial, financial and tourist one. Annual growth has consistently been between 5 and 6 per cent. The Mauritian economy still relies on sugar and uses 90 per cent of agricultural land to produce sugar cane. Sugar accounts for about 15 237