Accountants are the key to enabling Africa’s economic transformation, says the International Federation of Accountants (IFAC) and the Pan Africa Federation of Accountants (PAFA).
With 12 of the world’s 20 fastest-growing economies and an economic landscape characterised by rapid urbanisation, a young demographic, and abundant natural resources, the two bodies stressed Africa’s development is vital in both a regional and global context.
Their new report, The Accountancy Profession Enabling Africa’s Transformation, emphasises that achieving the continent’s growth and sustainable development ambitions requires the active contribution of accountancy and finance professionals.
It also outlines how influential accountants on company boards, and as CFOs, trusted business advisors, and those working in the public sector, can drive sustainable economic growth in Africa, and help navigate the challenges of energy access, a lack of regional integration, rising public debt, as well as climate change adaption and mitigation. The cost of which is estimated to be between USD68 and 108 billion annually.
Improving public financial management in Africa is an essential step needed in addressing the sovereign debt sustainability. The report said a robust public sector accrual-based accounting system and good financial management will reduce revenue leakage from waste and corruption, helping to reduce financial debts in the coming years too.
However, there needs to be wider access to suitable training, qualifications and strong professional and ethical standards, all of which are key to strengthening public sector governance and financial management. That means Africa needs more qualified accountants everywhere!
IFA CEO Lee White explained: “We believe the accountancy profession has a critical role in achieving transformation in Africa and empowering change.”
And PAFA’s CEO Alta Prinsloo added: “By strengthening the capacity and influence of the accountancy profession in African, we enable our 56 member organisation in 45 countries to help drive sustainable growth and prosperity by enhancing rtrade and regional integration, investment, the quality of services and trust in institutions.”
Read our eights pages of news in the August issue of the magazine, out now: https://issuu.com/pqpublishing/docs/pq_aug24_multi.
