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'Accountants needed' to improve African governance
Accountancy News |
24/06/2010
Despite the economic progress made in Africa over the last 20 years, corruption and poor business governance remain major problems for the continent, it has been claimed.
Helen Brand, chief executive of the Association of Chartered Certified Accountants UK (ACCA), commented that the current football World Cup is showing Africa in a positive light, but infrastructure advances are sadly not being matched in the area of financial transparency.
However, one of the ways this challenge can be overcome is by increasing the supply of fully trained and qualified accountants, Ms Brand claimed.
She said that sustainable development is "key for Africa's future" and individuals must be equipped with tools and skills they require to make a difference. The finance profession is a good starting point, she added.
Whether or not accountants are trained by national institutes or international bodies does not matter, she noted in the ACCA blog, so long as a greater supply of professional expertise can be achieved.
"Corruption may be a powerful foe anywhere in the world, but accountants' professionalism and ethical training can help seriously weaken its grip," Ms Brand said.
In terms of growth opportunities for the continent, Ms Brand suggested that globalisation can provide great benefits to the African economy, especially if global accounting standards can be successfully adopted.
But while African business may benefit from the adoption of International Financial Reporting Standards (IFRS), applying them in the context of emerging economies may prove challenging, the ACCA chief proposed.
"How exactly do you take these ideas and concepts, spawned from experience in highly advanced and complex markets, and apply them to the small and embryonic businesses, sectors, professions, and economies that exist in many parts of Africa?" she questioned.
Earlier this month, Ms Brand called for faster progress on global IFRS adoption, claiming that the economic problems of the last two years have emphasised the importance of accounting standards convergence.
Posted by Stephen Wilkinson
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