ACOA 2015 Conference : Opening a window of opportunity f or Africa

Over 800 professionals from an array of public and private sectors globally are currently in Mauritius for the ACOA 2015 conference. This pool of talent and power has been reunited under one common aim: sourcing out strategies for leveraging on the untapped potential of the African continent.

The Mauritius Institute of Professional Accountants (MIPA) has been designed this year by the Pan-African Federation of Accountants (PAFA) as the host for the 3^rd Africa Congress of Accountants (ACOA) 2015, under the theme ‘Rising Africa - Partnering for Results’. The conference, which is running from 11 to 14 May, addresses a broad spectrum of topics rela-ted to the accounting field and its impact on economic development, with special accent on Africa. These include good governance, public-private partnerships, infrastructure, regional cooperation and the future of corporate reporting, to name a few.

It is the first time that an ACOA conference is being held in Mauritius, with the participation of high profile delegates from institutions such as the World Bank, the International Federation of Accountants, the Institute of Chartered Accountants in England and Wales (ICAEW) as well as from the public sector across Africa. Several high profile B2B meetings and meetings with the Prime Minister’s Office have been scheduled to boost relationships.

Mauritius can decisively make its mark in Africa through ACOA 2015, which is offering delegates the opportunity to discover the country as a tourist destination, business centre and a financial services centre for accounting and more. “The organisation of ACOA 2015 shows that we can make things happen even if we are a small island. This conference will draw us and the profession closer to Africa. It is a great opportunity for Mauritian accountants,” states Clifford To, Chairperson of MIPA.

The conference can indeed position itself as a learning platform for the accounting professionals here. Like in several other areas of development, Africa is brimming with untapped potential. East-African countries like South Africa, Ghana, Kenya, Nigeria and even Zimbabwe are doing extremely well in the accounting sphere, points out Clifford To.

Bring the accounting profession to the next level

“Zimbabwe’s accounting body is over 100 years old, with mutual recognition agreements with institutions such as ICAEW. They are much older and much more structured than MIPA, which is 10 years old. We have lots to improve upon. A strong accounting profession in the country would be beneficial foremost to the economy,” Clifford To explains.

Michael Armstrong, ICAEW Director Middle-East, Africa, South Asia, highlights that a strong accounting and finance profession is the basis on which all sustainable economic success is founded. Firstly, in order to trust in markets or businesses, everyone must be able to have confidence that the numbers are right. We often hear about the headline deals, but none of them would be possible without the finance function, he says. This is true whether it is local, national or international trade. It is also the only way to attract international investment.

Secondly, people must be able to trust that money is being managed properly – in both the private and the public sectors. “ICAEW has been working hard to raise awareness of the crucial role the profession plays in safeguarding public finances, and the need for a ‘CFO at the Cabinet Table’ in government, ensuring fiscal prudence and responsibility are at the heart of public finances,” points out Michael Armstrong.

Thirdly, chartered accountants are recognised for working to the highest professional, technical and ethical standards, and acting in the public interest. At a time when the relationship between companies and the countries in which they operate is under scrutiny, especially around the issues of taxation, the profession must be leading the way.

“The profession is now bringing its expertise in measurement, management and strategic planning to new areas like environmental sustainability. Natural resources, or ‘natural capital’, need to be managed with the same stewardship as other capital, if we are to ensure that we live within our means as a planet as well as in business,” Michael  Armstrong notes.

From cash accounting to accrual accounting

Clifford To shares this view. In order for a strong accounting profession to exist, he observes, the governmental forces must do everything it takes to help strengthen the local body regrouping professionals from this field. Adding, it is now time for Mauritius to move out of its comfort zone and proceed to the next level.

“The government has been talking about opening up some sectors in order to drive the economy upwards but tomorrow if a major company comes to Mauritius in need of 1,000 accountants, we will not be able to supply this demand immediately,” Clifford To voices out.

Mauritius remains very limited by catering to local requirements only. The potential of outsourcing is huge as work can come in from anywhere around the world. What government should consider, suggests Clifford To, is the opening up our immigration policy to attract investors; boosting in parallel other sectors of the economy such as tourism. Around 2,700 accountants are currently registered with MIPA. Singapore, the direct competitor of Mauritius as a financial hub and our main economic role model, currently employs more than 20,000 accountants.

Clifford To also lays emphasis on the necessity of reviewing certain policies hindering growth of this sector, such as those specifying the employment of a definite number of foreign human resources in ratio to local talent. The democratisation of accounting on the continent is not sufficient alone for success and economic growth. Quality, transparency and good governance go hand in hand when ensuring healthy financial practices.

Michael Armstrong suggests that one of the first steps is for countries to adopt International Public Sector Accounting Standards (IPSAS). These aim to improve the quality of financial reporting by public sector entities, leading to better informed assessments of the financial decisions made by governments, and ultimately increasing transparency and accountability. “An important first step, as we are currently seeing in some countries in the EU, is for governments to move from cash accounting to accrual accounting, which enables IPSAS to be adopted. However, it is not simply about transparent reporting, although this is important. It is also about good management and strategy,” he says.

Africa has a long way to go in meeting international norms and channelling its potential towards the right breakthrough opportunities. What is however most certain is the fact that the continent is better poised than any other region right now for growth, reforms, diversification and, most importantly, attracting international investors.

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