Corporate governance model for improved performance in Zimbabwe smallholder banana farmers’ cooperatives

This article details a sustainable corporate governance framework for smallholder banana farmers in the Mutasa District of Zimbabwe. This analysis was motivated by the fact that there were 14 fully operational banana cooperatives in the Mutasa area of Zimbabwe in 1998, but by 2025 only 2 were operational and the rest were mostly dysfunctional due to chronic conflict between members. In addition, output production from such cooperatives continued to dwindle, raising fears about their sustainability and that of the smallholder farmers connected with them. This underlined the urgent need for comprehensive assessment of governance processes, particularly under the purview of principles of corporate governance. The main objectives of the study were to analyse transparency, accountability, care of stakeholders and long-term orientation in these cooperatives. Two central theories were applied for the study namely the Stakeholder Theory, which emphasizes the importance of delivering value for all stakeholders to achieve long-term success, and the Bottom-Line Theory which argues for a balanced approach to financial, social and environmental duties. The study used a positivist research philosophy as well as an explanatory research design, selecting 140 farmers from the Pahasha and Murara Cooperatives. Based on Slovin's Formula the sample size was decided as 104, and a stratified random sampling was used to ensure proportional representation. Primary data was collected using a closed ended questionnaire. The study found that cooperatives were grappling with declining production output, financial ill-health and low personal profits While members saw some transparency in financial reporting, major gaps remain in record access and communication. There were unclear leadership positions and roles. There was lack of stakeholder involvement. Additionally, the cooperatives were focused primarily on short-term profits over long-term sustainability, showing the need for a strategy focus. A sustainable governance model for smallholder banana farmers cooperatives was supposed to be based on diverse stakeholders including cooperative members, cultural, environmental, private sector, government-supporting, and NGO stakeholders. The model fosters participation, transparency, and accountability among members, leading to improved decision-making and operational effectiveness. The model adopts sustainable means of production to enhance economic feasibility and sustainability of the cooperative in the long term. Future studies are needed to address appropriate governance structures to empower members and ensure sustainability in other fruits.