Private Sector Accounting and Auditing in Africa Patricia Mc Kenzie Sector Manager FM East and Southern Africa June, 18, 2013

What have we been doing… 1. Diagnostics - ROSC Accounting and Auditing  36 Finalised reports, 6 in-progress  South Africa – 2 nd review – shares key best practices ( proposed issued date –June 2013) 2. Studies – Professional services trade policies 3. Dialogue in countries – Seychelles (Accountancy Law), Angola – establishment and strengthening of the PAO

What have we been doing …(cont) 4. Capacity building initiatives a. National level……..  Twinning arrangement success e.g Botswana – BIA & ICAEW  PAOs achieving IFAC Associate membershio Benin, Rwanda b. Regional initiatives …. they include

……..Regional initiatives OHADA Project – component (new) Strengthen the capacity of PAOs Improving the accounting standards - (SYSCOHADA Implementation of Auditing Standards improving the education and continued professional development curricula 4

……..Regional initiatives East Africa Community - new Harmonise PFM standards PAFA – on going support PAFA Conference 2012 PAFA IFRS for SME – Zambia 2013 Continue active collaboration 5

Work in Progress…… 1. Champion inclusion of the accounting and auditing agenda in policy dialogue of Regional Groupings – COMESA, CEMAC, African Union 2. Enhance dialogue on growth of the accountancy profession in Francophone 3. Support in implementation of IPSAS in Africa  Provide options to PAOs on how to include public sector subjects in Accountancy qualifications  Develop tools for PAOs to support with development of implementation strategies and reporting frameworks for countries moving to accrual accounting  Address Governance issues raised on IPSASB 4. Partner to host a round table for Fragile and Conflict countries – determine Accountancy reforms 6

Opportunities to contribute to Growth Support in strengthening PFM reforms  Accounting standards adoption – financial statements  Information systems and internal controls  Strengthen oversights: National Audit Offices, Internal audit, Public Accounts Committees Develop human capacity  Community of practices  Finance officers/ accountants – public sector ….. focus on youth 7

Opportunities to contribute to Growth  Enhance Management of Mineral Resources  Advocate for better Governance  Support Reforms that address vulnerabilities and shocks 8

Enhance management of Mineral resources – transfer revenue to public Mineral resources discovery Accountants role  Governance structures of the arrangement  Revenue management frameworks  Accountability frameworks 9

Governance Governance challenges  Voice and accountability  Corruption  Regulatory effectiveness Accountants role  Social accountability  Develop and implementation of regulations  Open data – accountability 10

Reforms to address vulnerability and shocks Vulnerabilities, shocks  Political violence /unrest  Dependence on 1 or few products  Environmental impacts e.g. earthquakes, floods  Terrorism, Piracy Accountants role  Diversification of economy  Research on risk mitigating measures  Climate change policies 11