Accountants' shortage a problem for South Africa

15 November 2009

2 minute read

Accountants' shortage a problem for South Africa

The problem is not new, but it is no closer to being solved. South Africa needs more qualified accountants, to the tune of 22,000, according to the the SA Institute of Chartered Accountants (Saica). "There is a huge demand for, and a chronic undersupply of, chartered accountants," says Niteske Marshall, director of Network Finance, a South African company specialised in financial recruitment. "People with CIMA (Chartered Institute of Management Accountants) qualifications are greatly in demand as well."

The skills shortage in the sector is a burning issue, according to Shaun Liedtke, Ceo of Wisdom Keys Group business consultancy: "We need more qualified professionals. If the collective effort of professional bodies in South Africa has not been able to reduce the ever present accounting skills shortages, we must be doing something wrong."

The Department of Higher Education has acknowledged that there is a need to review the qualification process and reduce barriers to entry.

Saica is also very keen to increase the number of non-white accountants, as the racial balance is still very skewed: only 12% of current CAs are black, mixed race or of Indian origin. But shortcuts to qualifications are not the solution, experts warn. If the financial crisis has not been as severe in South Africa as elsewhere it is also partly thanks to the country's high auditing and accounting standards. SA was ranked second out of 133 countries by the Global Economic Forum2009-10 for its standards in this area.

High standards of professionalism also seem to ensure a brilliant career for many: a Saica survey shows that chartered accountants dominate the boards of the Johannesburg Stock Exchange's top 200 companies. Nine out of ten chief financial officers are CAs as well as many Ceos, such as Brian Joffe of services and distribution company Bidvest and Stephen Koseff of Investec banking group. According to Saica executive president Matsobane Matlwa "CAs are among the many South Africans who have led the economic revolution and qualify as high-flying entrepreneurs and dynamic achievers."

AUTHORNicol Degli Innocenti

Insider Comment

ar
arsenioxvi
1 August 2017
In lay man's language SAICA is protecting the South African job market from accounting professionals from other countries yielding ACCA or CIMA or CPD qualifications, that way a local CA(SA) has a chance to get a job locally. Otherwise there is a huge demand for "qualified professional accountants"in South Africa.
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ly
lynx
13 April 2013
The acute shortage of Chartered Accountants is artificially created, probably, by the regulating body of Chartered Accountants in SA. The government must intervene. Take for example the comment above from J Red. Her husband is a qualified CIMA with 5yrs experience. CIMA and ACCA are highly regarded around the world. In the UK they rank on equal footing as the Institute of Chartered Accountants in England and Wales (ICAEW). Chartered Accountants from a few accountancy bodies do not have to write extra exams inorder to convert to CA South Africa.
However CIMA and ACCA members have to sit for additional exams and enrol for a 2 to 3yr training contract with a SAICA accredited accountancy firm. Some of these are people who have already been practising around the world for years with a wealth of exposure and experience. The ACCA qualification is not recognised by SAICA, in order to convert to CA(SA) they have to enrol for a 3yr Bachelors degree at an accredited university in SA then complete CTA and then enrol for a 3yr contract at an accredited practising establishment, this could amount to 8 more years of study yet they already hold a powerful qualification such as ACCA. These stringent requirements are unfair and restrict entry into the profession.
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Ma
Marlven
25 February 2011
I am in marketing and am actually thinking of "Expanding" my Career and do CIMA but am now thinking twice about it after reading these reader's comments.
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JR
J Red
9 May 2010
My husband is qualified CIMA with over 5 years experience working in London, and cannot find a job in Johannesburg.... I fail to see how Management Accountants are in such high demand??
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Lo
Louisjc
23 March 2010
There are many 50+ WHITE CA(SA)'s available that cannot find work!
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