IFAC works to develop accounting profession in Africa

The International Federation of Accountants has teamed up with the Pan African Federation of Accountants to release a new report on how the accounting profession can play a key role in transforming Africa’s finances.

The two groups released a report Thursday on how achieving the continent’s growth and sustainable development ambitions requires the active contribution of accounting and finance professionals. The report, available in both English and French, discusses how influential accountants on company boards, and as CFOs and trusted business advisors, can drive sustainable economic growth in Africa and navigate challenges such as energy access, a lack of regional integration, rising public debt, as well as climate change adaptation and mitigation estimated to cost between $68 billion and $108 billion a year. The report was presented at PAFA’s General Meeting on Wednesday, 

“We believe the accountancy profession has a critical role in achieving transformation in Africa and empowering change,” said IFAC CEO Lee White in a statement Friday. “We value our partnership with PAFA to support regional efforts towards addressing Africa’s priorities to enable sustainable growth and build capital market efficiency and transparency.”

The report was informed by a panel of experts at IFAC’s Professional Accountants in Business Advisory Group meeting in South Africa moderated by PAIB Advisory Group chair Sanjay Rughani. Experts came from the Brookings Institution, the African Development Bank, the World Bank, TradeMark Africa, Amundi Asset Management, Standard Chartered Bank, Nedbank and Investec Bank. The panel also included Josephine Okui Ossiya who provided CFO lessons from the Bujagali hydroelectric power station.

“By strengthening the capacity and influence of the accountancy profession in Africa, we enable our 56 member organizations in 45 countries to help drive sustainable growth and prosperity by enhancing trade and regional integration, investment, the quality of services and trust in institutions,” said PAFA CEO Alta Prinsloo. “This report highlights the key areas in which the accountancy profession can influence transformation to achieve a just and sustainable transition for Africa.”

Sustainability assurance

Earlier this week, IFAC also released a report on what to expect from sustainability assurance. “We are in the midst of a significant global transformation as businesses seek opportunities and ways to respond to sustainability-related challenges,” White stated. “Professional accountants are absolutely crucial in this transformation, and have an important public interest role to play. Our profession has a mature competency in analyzing and interpreting data, and the ability to use it to successfully innovate and introduce new business models.”

IFAC is calling for sustainability assurance engagements to be conducted in accordance with the global standards being developed by the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants to help ensure high-quality assurance.