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This article was first published in the March 2016 international edition of Accounting and Business magazine.

The function of accountancy in society is not a subject that accountants examine very often from a philosophical standpoint or in much depth after they qualify. Once students have earned their qualification, they are much more focused – quite rightly – on the practical application of the principles and practice they have learnt, and which demands immediate action and results.

But when a country consciously sets about rebuilding itself after suffering a major reverse, as has been the case for Rwanda over the past two decades, accountancy’s purpose in society becomes a practical problem that demands urgent attention.

Rwanda is determined to lead the way in sub-Saharan Africa in creating an enabling environment for investment. To do that, it has set out to build a strong accountancy profession in the country.

Emerging from the 1994 genocide has required this small country in central Africa to reinvent itself entirely. Starting from scratch, Rwanda immediately set up community courts for reconciliation and rebuilding trust between people. It moved quickly to develop further strategies and policies, enact laws, bring peace and develop the country in myriad innovative ways.

During the past decade Rwanda’s economic growth has averaged around 7% per year, maternal and child mortality and child mortality has fallen by more than 60%, the number of people living in poverty has dropped from 44.9% in 2011 to 39.1% in 2014, and near universal health insurance has been achieved. The country is also one of the least corrupt in Africa. It is generally agreed that a strong accountancy profession is needed to support continued achievement of developmental goals.

Firm foundations

Rwanda’s accountancy profession has a big role to play in developing a strong accounting and financial management and reporting ecosystem in public and private sector organisations in the country to international standards. To lay firm foundations and deliver on this mandate, the Institute of Certified Public Accountants in Rwanda (ICPAR) asked a number of international bodies to offer their support and experience in building up the Rwandan organisation’s ability to lead the profession effectively.

A landmark agreement between the International Federation of Accountants (IFAC) and ACCA signed in January is a result of two years of negotiations between various international bodies, ICPAR and IFAC, and the support of the UK’s Department for International Development (DFID).

DFID’s goal is to end extreme poverty and it considers the development of the accountancy profession in emerging countries an important element. IFAC is working with DFID to develop the profession in emerging countries. With support from DFID, IFAC will help 10 countries over the next seven years to build up the capacity of professional accountancy organisations (PAOs) such as ICPAR. These efforts are part of the memorandum of understanding to strengthen accountancy and improve collaboration (Mosaic) signed by IFAC and 12 donor organisations.

ICPAR’s perspective

From the start ICPAR has been interested in a ‘twinning arrangement’ with a strong national PAO that builds trust and goes beyond the normal consultant/client engagement, quickly growing into a long-term mentoring relationship. ICPAR is keen that staff in both organisations provide active input and have direct interaction that results in a transfer of knowledge and skills. The goal is for ICPAR to develop its own inhouse expertise quickly as it transforms into a viable and sustainable PAO.

ACCA will therefore begin by helping ICPAR to develop an insightful and realistic national strategic plan that takes advantage of its own experience in Rwanda as well as ACCA’s wide experience in both the developed and developing world. This plan will focus on the sustainable development of ICPAR, setting goals and addressing its legal mandate. It will include a resource mobilisation strategy so that ICPAR achieves financial sustainability. It will also incorporate plans for an information and communications technology strategy and system. The strategic plan will be supported by a detailed implementation plan; a programme coordinator will be identified and provided by ACCA to work full time in ICPAR’s offices until the end of March 2017.

ACCA will also consider the syllabus, curriculum and the training and study materials offered by ICPAR, benchmarking them against international standards, recommending improvements, and assisting in the development of different specialisations including tax, audit and local government, as well as creating pathways to other professional accounting bodies. ACCA will also help ICPAR to strengthen its professional examination process to ensure it is in accordance with best practice and international standards. Finally, ACCA will review and develop recommendations to enhance ICPAR’s continuing professional development (CPD) programme to reach international standards and give members access to high-quality CPD that helps them remain effective and current in the global environment.

The engagement is a welcome opportunity for ACCA to provide support to a national PAO in East Africa. This engagement will help ACCA transcend the perception it sometimes faces of being a competing qualification by becoming a partner for capacity building with ICPAR.

The challenges of transforming Rwanda’s accountancy profession include poor pass rates, inadequately skilled people and poor-quality teaching materials and examinations. If the ICPAR/ACCA partnership overcomes these challenges, it will help bridge the skills gap in the public and private sectors and transform Rwanda into a regional leader in attracting international investment and achieving excellence in economic and social development.

Hopefully this will in turn lead to more partnership opportunities for ACCA to help other national PAOs in Africa, too.

Alnoor Amlani FCCA, independent consultant based in East Africa