Accountants and South Africa: A New Perspective Amidst Uncertainty
In a year filled with uncertainties, accountants—a group often seen as reserved in their political commentary—have taken a bold stance regarding South Africa’s economic future. Following a recent convention held by the Association of Chartered Certified Accountants in Mombasa, Kenya, a resounding message emerged: South Africa’s destiny is more intertwined with Africa than with distant powers like Washington.
The Scope of the Convention
The convention brought together around 1,000 finance professionals, public sector executives, and businesspeople from across the continent. Discussions ranged widely, covering crucial topics such as trade dynamics, geopolitics, corruption, skills shortages, and the emerging landscape of sustainability regulations. This gathering underscored the seriousness with which these financial experts view Africa’s potential as a vital economic partner.
Shifting Perspectives on Trade
Farooq Ronnie Shumba, owner of FRS Accountants in Johannesburg, articulated a growing concern that South Africa has been sluggish in acknowledging the continent’s significance as an economic ally. His remark about the African Growth & Opportunity Act (AGOA)—a trade program designed to facilitate trade between the U.S. and African countries—reveals a deeper anxiety. “A lot of people are worried about Agoa, and rightly so,” Shumba stated. “But Africa is a large market. We need to stop acting like the West is the only place where opportunity exists.”
Shumba further illustrated this disconnect through everyday trade practices. Noting that one of South Africa’s largest exports to the U.S. is wine, he lamented the lack of quality South African wines available in Kenya. “We can’t put all our eggs in the American basket. Africa has money, Africa has people, and Africa has demand,” he emphasized, hinting at untapped economic avenues within the continent.
Navigating Geopolitical Tension
South Africa’s foreign policy tensions with the U.S. have raised concerns among business sectors, but Innocent Gumbochuma, CFO at the South African Qualifications Authority, offered a counter-narrative. “Investors don’t invest based on Twitter or headlines,” he pointed out, insisting that institutional efficacy is what truly matters. Gumbochuma highlighted the rise in U.S. tourist arrivals as a sign of confidence in South Africa. “If there was real instability, people would not be coming. We are not perfect, but our checks and balances are stronger than many.”
This sentiment is echoed throughout the accounting community, as Gumbochuma explains that pressure from global powers like Washington can sometimes bring countries closer together. “When big powers try to push South Africa away, they often push others closer,” he observed.
Challenges at Home
Amid these discussions, it became clear that some of South Africa’s most pressing challenges lie domestically, particularly within the public sector. Finance executive Manenzhe Manenzhe flagged that misalignment in budget planning is a major hurdle. “Government planning typically operates on five-year strategic frameworks while budgets are set over three-year cycles,” he explained, underscoring how this disconnect hampers effective service delivery.
Moreover, skills shortages complicate these issues. “Attracting skilled people is one thing; retaining and using them properly is another,” Manenzhe warned, stressing that underutilized skills could be lost to other opportunities. He also cautioned about rising borrowing costs, which could burden future generations.
The Burden of Corruption
Corruption loomed large as an uncomfortable topic at the convention. Both Shumba and Gumbochuma admitted that accountants find themselves straddling a line between responsibility and risk in this regard. While they typically report what is visible, the profession is not without its corrupt elements. Shumba noted high-profile scandals like VBS and KPMG as examples of failures within the industry. Gumbochuma further illustrated the dangers of standing against corruption, recounting how finance officials have suffered intimidation or worse for performing their duties.
The Accountant’s Future and Technology
An overarching theme that emerged was the impact of technology, especially artificial intelligence (AI), on the accounting profession. Gumbochuma posited that AI isn’t spelling the end for human accountants; rather, it is pushing for rapid evolution within the field. “What’s dying is refusing to upskill,” he remarked. While AI can crunch numbers, it still lacks the capacity to provide insights and interpretations.
Sustainability and Regulation
As the conversation progressed, the necessity for sustainability regulations came to the forefront. Lebogang Senne, a regulatory consultant and sustainability specialist, emphasized that mandatory climate and sustainability disclosures are on the horizon. Although South Africa has yet to formally adopt international sustainability standards, the momentum is building. “Once sustainability reporting becomes compulsory, assurance requirements will follow,” she warned.
Senne urged finance teams to treat sustainability data as rigorously as they do financial data. “If it’s not documented, it doesn’t exist,” she clarified, stressing that tracking energy use, water consumption, and waste management should be a business priority.
The Role of Accountants in the Economy
Despite the numerous challenges addressed at the convention, there was an undercurrent of optimism about the future of accounting in South Africa. Shumba concluded by reinforcing the indispensable role of accountants in economic decision-making, stating unequivocally, “There is no business without an accountant. If you want to be close to economic decision-making, this is where you belong.”
The discussions served as a wake-up call, revealing not just the challenges but also the opportunities that await accountants and businesses willing to engage more deeply with the African continent.