AFRICA CONGRESS OF ACCOUNTANTS -ACOA 2013 PAFA IN A DECADE

1. AFRICA CONGRESS OF ACCOUNTANTS -ACOA 2013 PAFA IN A DECADE INTERNATIONAL CONFERENCE CENTER– ACCRA, GHANA 16th May 2013 CPA Patrick Mtange Chairman - ICPAK Credibility . Professionalism . AccountAbility

2. Scheme • Africa In Perspective • PAFA In The Africa Perspective Credibility . Professionalism . AccountAbility

3. Africa In Perspective • AFRICA PROFILE • Size: Huge Landscape and 54 member countries of African Union • Census: Increased youthful population about 1.2 billion • Perception: Relative stability in political management and economic policy • Resources: Increased investment in extractive Industry and infrastructure • Technology: Increased appetite for technology uptake Credibility . Professionalism . AccountAbility

4. PAFA, The next Decade – Africa In Perspective • A catalyst: in developing the accountancy profession in Africa, in the perspectives that follow. • An instrument: of Africa's collective voice. Credibility . Professionalism . AccountAbility

5. Huge Landscape - Perspective • Size: Has 54 countries under the African Union covering about 30 million km sq, this provides diverse cultural, linguistic, jurisdictional, policy, Legal and regulatory implications for PAFA in the next decade. • Opportunity: to sensitize and advocate for governments to support a harmonised legal and regulatory framework for development of the profession in Africa. • Action: governments be called upon to adopt and or deepen International Public Sector Accounting Standards within the context of Integrated Financial Management Information Systems - IFMIS Credibility . Professionalism . AccountAbility

6. Increased Population - Perspective • Population of about 1.2billion people of which about 60% are youth, the implications for PAFA in the next decade includes: • Talent development in the accountancy profession. • The curriculum for accountancy training & qualification on the continent needs to be dynamic and harmonised. • - Promote the ability of National professional bodies to train and develop adequate accounting manpower relevant to the level of economic development. • This talent is not only critical to both economic and social development of respective countries but also the profession. Credibility . Professionalism . AccountAbility

7. Relative Stability in Political Management & Economic Stability- Perspective • Consumer Class: Provided for emergence of consumer class about (350 million) that is driving about 5% economic growth. • Data Availability: The measurement of real economic growth of most African countries unknown due to unreliable data. • Financial information: based on international standards provides a basis for measuring, recording and comparing economic performance. Therefore: • a. Adoption of International reporting standards by African countries is key. • Implementation of International Public Sector Accounting Standards by African governments is critical. • Investment by governments in the accountancy profession is imperative. Credibility . Professionalism . AccountAbility

8. Increased Investment in Extractive Industry and Infrastructure • Working together with private sector to sustain infrastructure connecting Africa to its internal and external markets • Infrastructure development across boarders deepens regional integration through increased intra Africa trade Credibility . Professionalism . AccountAbility

9. Increased Investment in Extractive Industry and Infrastructure • Consequences: • the need for free movement of accountants within the continent. • The need Professional Accountancy Organisations (PAOs) to engage in reciprocal/recognition/ collaborative arrangements in the immediate term. • Increased Investments in a country provides opportunity to grow and strengthen the national PAOs. • It is important that the National accountancy profession be supported to grow rather than be competed out/weakened by established bodies. • It creates need for partnerships between emerging PAOs and established accountancy bodies especially in Audit Quality Monitoring anchored on knowledge transfer and not just consultancies. Credibility . Professionalism . AccountAbility

10. Increased Investment in Extractive Resources and Infrastructure • Increased Investments in a country has brought about the challenge of transfer pricing and loss of national revenues through duty and tax waivers thereby contributing to increased poverty • This is an accountability problem of public interest affecting many countries on the continent and PAFA can voice Africa’s concern. That is, maintain a strong voice in matters concerning accountability and governance in Africa • Develop, also, a strong and sustainable accountancy profession in Africa which address issues of resource mobilization and utilisation Credibility . Professionalism . AccountAbility

11. INCREASED APPETITE FOR INFORMATION TECHNOLOGY • With 167million internet users and 52million face book users and increasing mobile telephony penetration, Africa is set for a revolution. See tweeting statistics below for emphasis. • Implication: • Use of Web based accounting software, cloud computing, mobile telephony banking and money transfer simplifies business; • Many businesses including governments are adopting Integrated Financial Management Information Systems to enhance efficiency and compliance. • Traditional Accounting is being left with financial reporting. • What will be done with the time left? Is the relevance of the profession in Africa threatened? What should be the response? Credibility . Professionalism . AccountAbility

13. Increased Appetite for Information Technology • Need for emerging firms to increase skills mix in different specialisations in order to widen the spectrum of services offered to clients. • -For example: Finance broking, consulting, risk management, management accounting among others. • Use of social media and mobile telephony be used to manage client relationships and attract new clients. • Use of web and mobile telephony presence to establish and manage reputation. • Challenge: Such are new areas where PAFA can find the appropriate role to play. Credibility . Professionalism . AccountAbility

14. Thought Leadership on Appropriate Matters On the Continental Arena • Strengthen PAFA on evidence based lobbying and advocacy • Obtain observer and advisory status at the Pan African economic and political structures at the African Union; • Focus regional groupings of PAFA members to play advisory role at the regional economic blocks – SADC, COMESA, ECOWAS, EAC. • Through sectoral forums, enhance PAFA participation in IFAC standard setting initiatives; • Develop regional frameworks on implementation of accounting standards. Credibility . Professionalism . AccountAbility

15. “A society grows great when old men plant trees whose shade they know they shall never sit in” – a Greek Proverb Thank You!! Credibility . Professionalism . AccountAbility