Accountants and finance professionals, who are also uniquely positioned to adapt to the African Continental Free Trade Area (AfCFTA) through their super-connector capabilities, have low levels of awareness about the AfCFTA among them, a new study has found. Is.
The research, jointly conducted by the Pan African Federation of Accountants (PAFA) and the Association of Chartered Certified Accountants (ACCA), which surveyed more than 1,600 professionals across 22 professional accountancy organizations in Africa, found awareness levels to be quite low . , and participation in AfCFTA by accountancy and finance professionals.
The headline of the report copied to Ghana Business News: ‘Journey to AU2063: Professional Accountants Empowering AfCFTA’Dives deep into the current state of trade in Africa and highlights significant barriers to intra-continental trade in realizing the potential impact of the AfCFTA.
With a market of 1.2 billion people and a combined GDP of $2.5 trillion, trade under the AfCFTA, which began on January 1, 2021, is expected to boost intra-African trade and boost economic growth and development in Africa.
Some progress has been made since the introduction of the AfCFTA, prominent among the steps being the launch of commercial operations of the Pan-African Payment and Settlement System (PAPSS), by Afreximbank, the African Union Commission and the AfCFTA Secretariat.
With PAPSS, it is now possible to make intra-African trade payments in African national currencies.
For example, according to Afreximbank chairman, Professor Benedict Ormah, a Nigerian can buy a product from Ghana and pay in naira and the Ghanaian seller will receive payment in cedis.
“Overtime PAPSS will spread across Africa. When this happens, we will cost the continent at least $5 in transfer and settlement fees while retrieving our continental trades that were diverted to non-African markets due to the use of third currencies to pay for intra-African trade. Aim to save billions.
PAPSS constitutes the foundation on which strong and convertible national currencies will emerge, and Afreximbank is very proud to support this system with a facility that will reach an amount of $3 billion once PAPSS becomes fully continental. could,” he said at the recent. AU Africa Industrialization Summit in Niamey, Niger.
Citing ACCA’s 2022 report, Accounting for a Better World said it reflects how important the emerging role of accountancy and finance professionals is in creating a better world, identifying seven priority areas for the profession.
“If Africa is to achieve its grand agenda for trade liberalisation, accountancy and finance professionals need to improve their understanding of how to interpret these priorities in the context of AU2063. Following the State of the Profession in Africa report (PAFA, PwC and ACCA 2022), this research aims to provide a framework for accountancy and finance professionals to address the identified gaps and barriers to leveraging the AfCFTA for intercontinental trade. To develop a roadmap. It said.
Jamil Ampomah, Director – Africa at ACCA, said: “AU2063 provides an opportunity for accountancy and finance professionals in Africa to showcase their priorities for building a better world through business integration in Africa. With PAFA Our partnership enables us to join forces to strengthen the profession’s influence and effectiveness as a driver of socio-economic development in national, continental and global ecosystems.
The survey makes a set of recommendations for improving the efficiency of the relevant ‘ecosystem’ – professional services, institutions, business, finance, and policy and political – with the accountancy profession playing a connecting role between them. Through this role, accountancy and finance professionals can bring diverse groups together, enable transactions and build trust among key players in intercontinental trade.
by Emmanuel K. Dogbewey
Copyright ©2022 by Newsbridge Africa
All rights reserved. Except for the use of brief quotations in reviews, this article or any part of it may not be reproduced or used in any way without the express written permission of the publisher.