Building Sustainable Human Capacity in accountancy profession role - PowerPoint PPT Presentation

Building Sustainable Human Capacity in accountancy profession – role of PAOs P A T R I C K K A B U Y A W O R L D B A N K G R O U P A P R I L 1 2 , 2 0 1 6

Presentation outline……. Background … need for quality human capacity Status of accountants SSA What can profession do?

Af rica Po verty is d ec lin in g b u t s lo wly

Africa is vulnerable to a range of global and regional trends Currency Depreciation and Debt Poverty   Poverty is falling more slowly in Africa than The strong US dollar has put pressure on currencies across the region other regions   This has increased inflation and led to higher Absolute number of poor has increased due to debt burdens high population growth rate Fragility and Conflict Sluggish Growth   Africa hosts a third of the world’s displaced Growth is at the lowest rate since 2009 population  Growth trend is below pre-2008 crisis levels  The region has seen an increase in non-traditional  Commodity exporters are experiencing the forms of conflict that target civilians sharpest declines in growth  Millions in Africa remain at high risk from the fast spread of epidemics such as Ebola Commodity Prices Climate Vulnerability   Africa is a net commodities exporter and is Africa is the lowest carbon emitter but is more deeply affected by lower commodity prices vulnerable to climate change than other regions  Well over half of the region’s GDP comes  from 17 resource-rich countries, whose Climate change threatens natural capital, fiscal revenues are heavily dependent on physical capital, and human capital 4 export receipts.

World Bank response… So, how do we promote growth and reduce poverty? Boosting agricultural productivity Improving infrastructure Domestic Resource mobilization Invest in high quality human capital

….investing in high quality human capital: more educated, more skilled and potentially more productive youth  Human capital has expanded significantly across Sub-Saharan Africa . Primary enrollment has surged from 73% in 1990 to nearly universal coverage in the present. But quality still lags far behind. Tests from across the continent show that many children in 2nd or 3rd grade cannot read a single word from a simple text.  Focus needs to be on improving the quality of human capital investments and investing in high-return human capital. particularly technical skills, and vocational training Many 2nd-3rd graders can not read a single word of a Few tertiary graduates, and few in STEM fields simple paragraph 90 Percentage of population that graduates 80 from tertiary education 70 percent of students 60 50 15 African countries 40 30 20 10 STEM Global comparators Non-STEM 0 Liberia Mali The Uganda Ghana Kenya Senegal Gambia 0% 5% 10% 15% 20% 25% 30% Grade 2 Grade 3 Source: African Center for Economic Transformation 2014 6

Accountancy profession Cu rrent statu s ……memb ers h ip Number of accredited chartered accountants serving in public practice/country". / million inhabitants 90 80 70 60 50 40 30 20 10 0 République… Tunisia Gabon Bénin Sénégal Guinée-Bissau Togo Madagascar[1] Burkina Faso Mali Guinée Niger République Centrafricaine Tchad, Comores Morocco Guinée équatoriale République du Congo Côte d'Ivoire Cameroun Mauritania No of accountants: < 100k (2015 declaration by 46 PAFA members)

Role o f ac cou ntan c y p ro fes s io n - cap ac ity 1.Promoting accountancy as a career and accountancy services - branding Create and enhance demand for accountancy services Position and promote role played by accountants - Trusted business advisors/leaders Thought leadership in national agenda – value add

Role o f ac cou ntan c y p ro fes s io n - cap ac ity 2 . Existence of strong and effective regional and national PAOs Governance Strategic plans Strong secretariat Human and financial capacity Twinning arrangements

Role of accountancy p rofes s ion - cap acity 3.Develop and offer National/Regional qualifications with global recognition Tiers of qualification Develop skills and capacity for entire financial reporting value chain – public & private sector Professiona l Reposition and rebrand technician qualification General Global (mutual) recognition – intra Africa trade Technician Delivery : Capacitated training Schools institutions, access (location and cost) sustainable

Role of accountancy profes s ion - cap acity 4. What about other effective skills development programmes?  Business development/ entrepreneurs Identify other capacity building • Members of National Assembly • Directors and Audit committees  Contribute in Government capacity building policy formulation and implementation  Research on skills etc. to shape policy

Role of accountancy profes s ion - cap acity 5. How are we adapting the accountancy qualification to cater for……. Changing employment trends:  Attitude vs qualifications  Behavioral: 85%, technical 15%  Entrepreneurial skills 15 – 24 years unskilled, unemployed How to accommodate,  Those changing careers at mid life  Successful people with no formal academic qualifications  Farmers – practical training

Conclusion What should each of us do? Human capacity; build a better society (value add) Thanks for your time! “A society grows great when old men plant trees whose shade they know they shall never sit in”. Greek proverb