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

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

Building Sustainable Human Capacity in accountancy profession – role of PAOs

Presentation outline…….

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

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

Currency Depreciation and Debt

• Africa is a net commodities exporter and is

deeply affected by lower commodity prices

• Well over half of the region’s GDP comes

from 17 resource-rich countries, whose fiscal revenues are heavily dependent on export receipts.

• Growth is at the lowest rate since 2009
• Growth trend is below pre-2008 crisis levels
• Commodity exporters are experiencing the

sharpest declines in growth Commodity Prices Climate Vulnerability Sluggish Growth Fragility and Conflict

• Africa hosts a third of the world’s displaced

population

• The region has seen an increase in non-traditional

forms of conflict that target civilians

• Millions in Africa remain at high risk from the fast

spread of epidemics such as Ebola

• Africa is the lowest carbon emitter but is more

vulnerable to climate change than other regions

• Climate change threatens natural capital,

physical capital, and human capital Poverty

Africa is vulnerable to a range of global and regional trends

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• Poverty is falling more slowly in Africa than
• ther regions
• Absolute number of poor has increased due to

high population growth rate

• The strong US dollar has put pressure on

currencies across the region

• This has increased inflation and led to higher

debt burdens

Boosting agricultural productivity Improving infrastructure Domestic Resource mobilization Invest in high quality human capital

World Bank response… So, how do we promote growth and reduce poverty?

• 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

….investing in high quality human capital: more educated, more skilled and potentially more productive youth

Source: African Center for Economic Transformation 2014

10 20 30 40 50 60 70 80 90 Liberia Mali The Gambia Uganda Ghana Kenya Senegal Grade 2 Grade 3

percent of students

Many 2nd-3rd graders can not read a single word of a simple paragraph

STEM

Non-STEM

0% 5% 10% 15% 20% 25% 30%

15 African countries Global comparators

Percentage of population that graduates from tertiary education

Few tertiary graduates, and few in STEM fields

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Accountancy profession

Cu rrent statu s ……memb ers h ip

10 20 30 40 50 60 70 80 90 Tunisia Gabon Morocco Bénin Sénégal Guinée équatoriale Guinée-Bissau Togo Madagascar[1] République du Congo Côte d'Ivoire Cameroun Burkina Faso Mali Guinée Niger République Centrafricaine Tchad, Mauritania République… Comores

Number of accredited chartered accountants serving in public practice/country". / million inhabitants

No of accountants: < 100k

(2015 declaration by 46 PAFA members)

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

Role o f ac cou ntan c y p ro fes s io n - cap ac ity

Governance Strategic plans

Strong secretariat

Human and financial capacity

Twinning arrangements

3.Develop and offer National/Regional qualifications with global recognition

Role of accountancy p rofes s ion - cap acity

Tiers of qualification

Develop skills and capacity for entire financial reporting value chain – public & private sector Reposition and rebrand technician qualification Global (mutual) recognition – intra Africa trade Delivery: Capacitated training institutions, access (location and cost)

Schools

Professional

General Technician sustainable

• 4. What about other effective skills

development programmes?

Role of accountancy profes s ion - cap acity

• 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

• 5. How are we adapting the accountancy

qualification to cater for…….

Role of accountancy profes s ion - cap acity

Changing employment trends:

• Attitude vs qualifications
• Behavioral: 85%, technical 15%
• Entrepreneurial skills

How to accommodate,

• Those changing careers at mid life
• Successful people with no formal

academic qualifications

• Farmers – practical training

15 – 24 years unskilled, unemployed

Thanks for your time!

Conclusion

What should each of us do? Human capacity; build a better society (value add)

“A society grows great when old men plant trees whose shade they know they shall never sit in”. Greek proverb