South African universities have been advised to form partnerships with all professional bodies in the accountancy sector to create better opportunities for students and increase the number of sorely-needed qualified accountants across the country.
This requirement emanates from the recent World Bank report on the Observance of Standards and Codes, Accounting and Auditing (ROSC A&A) review in South Africa conducted at the request of the Minister of Finance last year.
The South African Institute for Business Accountants (SAIBA) is one such professional body eager to forge relationships with tertiary institutions in the near future, says CEO Nicolaas van Wyk.
“We’re delighted that such a prestigious report sees the need for us to be at the forefront of developing accountants at all levels,” he says.
Currently, 13 South African universities are registered exclusively with the South African Institute for Chartered Accountants (SAICA), which has invested heavily over a number of years in lifting and maintaining the quality of education provided by and to chartered accountants. With a history evolving over 130 years and boasting global recognition, it is an impressive organisation.
“Now that the World Bank has officially recognised the need for other professional bodies in the industry to fill the gaps that SAICA doesn’t fill, we at SAIBA want to start the ball rolling quickly,” says Van Wyk.
“The industry is desperate for graduates at all levels of the accounting sphere, not just the top end which receives admirable support from SAICA. The fact is that financial managers in medium and small businesses are feeling the pinch from the national scarcity of accountants. They need support in getting the expertise they need.”
The emphasis in the World Bank report on broadening support by professional institutes to universities is meant to help resolve the critical shortage of accountants.
South Africa with a population of over 50-million has just 38 000 professional accountants compared to the United Kingdom which has 287 000 in a country of 62-million people. Even more telling is the Australian statistic – 149 000 accountants in a population of 22-million.
Improving the ratio in South Africa would have a direct impact on its GDP as it does in other comparable countries, where an adequate number of professional accountants in the private and public sectors serve to cut costs and improve efficiency.
Not least, is the potential to enhance the government’s National Development Plan (NDP) which critically advocates the strengthening of accountability, which can only be achieved through the implementation of credible accounting and auditing practices by professionals.
“It is therefore a national imperative for all universities and all professional accountancy bodies to join hands,” explained SAIBA’s newly elected executive president, Professor Reckson Thakhathi.
“There is no point in only supporting the ‘cream of the crop’ as it were and, in the process, excluding or discouraging thousands of youngsters who want a career in accounting. There is a shortage of skills across the accountancy spectrum in a country suffering chronic unemployment.
“It makes sense to open up opportunities where they are currently closed. We must seize the challenge to provide a win-win-win situation – for the industry, the universities and the job seekers.
“Currently, most of the available funding from the Department of Education to develop accountants is allocated to develop chartered accountants specifically. This is a policy issue that deserves immediate attention from decision-makers.
SAICA’s own research revealed a shortage of 22 000 accountants. The majority of this shortage relates to non-CA’s therefore allocating funding and resources to develop CA’s only, is clearly not the best solution.”
SAIBA hopes that the call to action by the World Bank will result in universities showing their willingness to engage with them and other accountancy institutes.
“We will be extending invitations for meetings with the faculties to start the process,” says Thakhathi.