Accountants as Africa’s navigators

This new year brings hope that the world can gradually start to rebuild following the pandemic, albeit with some uncertainty over new strains. The rise in efforts at getting people vaccinated, prevention protocols gaining greater acceptance, treatment regimens improving, and our growing ability to quickly detect new mutations of Covid-19 and fight them, all mean that we should be optimistic about 2022.

With the global economy getting back to normal, albeit a new normal, there will be increased focus on the environment and the impact of human activity on our planet. This is no longer a discussion for scientists and environmentalists alone but one in which finance is involved.

Business has no choice but to take this seriously and take action. Organisations must realise that they can no longer pay lip service to the impact of their actions on the environment. Consumers are becoming more conscious of the impact of their consumption on the environment, and an increasing number are applying wallet pressure to the makers of the goods and services that they consume to treat the environment better.

Time to lead

Accountants and finance professionals have to lead the way in getting their businesses to elevate environment-related considerations to the fore of business decision-making. They must begin to help their businesses create environmental action and impact metrics for measurement of their roles. They must prepare for the impact of legislation that may be enacted as countries try to meet emission targets.

Finance professionals need to create models and gather data to help businesses make the right decisions in this dynamic world. They must prepare sustainability reports and get ready for the day when these will become mandatory.

Talent and skills

Talent will continue to be critical to competitive advantage, and companies will fight for the best. We must therefore keep our knowledge and capabilities top-notch – and this includes in technology, where advances mean more of our work can be automated. Our focus must shift to decision-making and strategy formulation.

ACCA continues to provide members with insightful materials on topical issues, great business research, and opportunities to remain razor-sharp and able to continue to contribute to the success of our firms (see panel).

Adapting to change

As the global economic situation continues to improve, given better management of COVID-19 and its variants such as Omicron, some of the foreign portfolio investment that left Africa may return – foreign direct investment and tourist dollars, too. Innovative businesses will benefit most from these inflows.

Business models may need to change to adapt to the new environment. Companies may need to redefine themselves in order to be able to respond to new needs of their customers. Strategies have to be reviewed and, if need be, reformulated.

Finance professionals in Africa have to help companies think through these changes – especially those in the hospitality, transportation, tourism, health and other industries significantly impacted by the pandemic. Professional accountants in these sectors have to help businesses make tough decisions such as how much office space to retain, optimal staffing levels and what to prioritise. They also have to lead in making projections for the future.

Opportunities in trade

They also need to find out the implications of the African Continental Free Trade Agreement (AfCFTA) on their firms’ product and service offerings. As trade barriers drop, they must research probable competition and have response plans ready in advance. They must encourage companies to explore opportunities that may present themselves across the continent.

This is going to be an interesting year, and accountants must brace up and help navigate the uncertain, dynamic but opportunity-laced business environment.