Contributing to Rwanda's success story

The challenge

Landlocked, hilly and fertile, Rwanda has become one of Africa’s success stories. This has been helped by structural reforms providing an economic environment and infrastructure that enables growth and prosperity for its citizens. The government has seen the development of a robust accountancy profession as critical in its drive towards middle income status.

How the accountancy profession is helping

Rwanda kicked off development of its accountancy profession in 2008 with the establishment of the Institute of Certified Public Accountants of Rwanda (ICPAR). As the economy and the profession grew, so did the need to equip more people with financial skills, particularly in the public sector which the country was growing as a key part of its strategy.

ICPAR looked to partners outside Rwanda to help expedite the development of the accountancy profession. Funded by the UK’s Department for International Development and managed by International Federation of Accountants, a project was launched to develop a new strategy for ICPAR - and deliver some of the key priorities that were Identified through the strategy. ACCA was identified as the right partner to support these developments, which included the introduction of a new accountancy technician qualification - internationally benchmarked and locally relevant - supported by ACCA's experience from its global network and connections.

The ‘twinning partnership’ between ICPAR and ACCA also extended to other areas focused on enhancing ICPAR’s relevance and long term sustainability, including a review of the country’s audit capacity, sustainability and human resource planning, ICT strategy and enhancements to CPD. The Rwanda government Is now funding a revamp of the ICPAR professional accountancy qualification - again with ACCA support.

The impact

As a result of this collaboration, Rwanda now has a strong and growing accountancy profession. ICPAR was admitted as a full member of the International Federation of Accountants in 2020. The ripple effects of a strong national accountancy body with standards, qualifications and admission criteria include greater confidence in business and the economic capability of the country – helping to drive its prosperity. Many thousands of individuals have also benefitted from the career opportunities that have opened up, while employers, both in the private and public sector, are able to access the skills they need to be successful.

‘ICPAR is an ambitious institute for an ambitious country and we recognise how vitally important accounting technicians are to fuelling Rwanda’s growth. Every school, hospital, business and government department needs the skills which this new qualification will provide.’ - Amin Miramago, ICPAR CEO

Combatting money
laundering in Ireland

The challenge

Money laundering fuels crime and is a major threat to a fair, thriving and sustainable economies. As Aidan Clifford, ACCA advisory services manager in Ireland, explains: ‘There would be no drug trade if you couldn’t launder the proceeds’.

How the accountancy profession is helping

With their ethical code and carefully-trained eye helping them to spot signs of criminal financial activity, accountants have a key role to play in anti-money laundering efforts.

In Ireland, ACCA has been working with its members, fellow professional bodies, business and government agencies to help combat it through an informal public/private partnership. This was set up by the Garda National Economic Crime Bureau (GNECB) and the Irish Financial Intelligence Unit with the aim of increasing anti-money laundering cooperation by sharing knowledge and insights on money laundering trends and typologies.

As a result, previously overlooked sources of money laundering activity have been identified and steps taken to combat it.

In addition to this kind of collaboration, ACCA helps to prevent money laundering by providing extensive training for its members. Steven Meighan, inspector at the GNECB, highlights the danger that accountants could be exploited and used as unwitting accomplices to enable criminal enterprises. Such training helps professional accountants spot instances of money laundering and take corrective action. A helpline for ACCA members has also been established to help them when they encounter suspicious activity.

Seeing education as a foundation stone in the fight against money laundering, ACCA has been sharing lessons learned in Ireland with ACCA members in other countries, as well as other accountancy bodies and national governments. Building on its collaboration with the Irish government, ACCA has created a guide to spotting money laundering activities, for the benefit of other countries, helping the profession around the world to combat crime.

The impact

This collaboration between the accountancy profession and the government has helped Ireland boost its reputation as a robust and respected financial centre. Ireland’s expertise and approach to money laundering has attracted the attention of international businesses looking to locate their anti-money laundering divisions in the country, increasing demand for skilled jobs. This, along with the benefits of reduced crime, is helping to shape a fairer, more thriving and sustainable economy for the benefit of all.

Advancing standards and regulation in Pakistan

The challenge

With a population of over 220 million, Pakistan is the 35^th largest global economy in terms of GDP. Like many markets, Pakistan has challenges on environmental, social and governance (ESG) issues ranging from electricity shortages and income inequality to corruption and the impact of climate change. Improving corporate governance has long been seen as an important part of the answer to these issues and as a critical driver of prosperity.

How the accountancy profession is helping

Corporate governance

In 2002, ACCA engaged with the Securities Exchange Commission of Pakistan (SECP) to discuss best practices in corporate governance. This led to a collaboration to help the Pakistan Government develop its national governance code and raise the accountability and transparency of all listed companies in Pakistan to protect shareholders and other stakeholders.  The code also mandated training of all listed company directors, helping directors to steer organisations through an increasingly turbulent environment. The Pakistan government is now turning its attention to the environmental and social challenges of ESG.

WWF collaboration

In 2000, ACCA embarked on a 15-year collaboration with WWF to work with the private sector and encourage environmental reporting as common practice across Pakistan. This collaboration led to the Pakistan Environmental Reporting Awards, which measure the carbon footprint, health and safety, and diversity of employment of companies across the country.

The Awards had a positive impact, resulting in an increasing number of companies embracing sustainability reporting. Today, many companies follow Global Reporting Initiative (GRI) standards – global standards for sustainability reporting – and are proudly managing sustainability as part of their strategy. Reporting is a clear way of demonstrating that a business is taking tangible and actionable steps towards change. The ACCA / WWF partnership highlighted the pivotal role that accountants working for organisations across Pakistan have played in advancing transparency and change.

Future impact

ACCA continues to contribute to Pakistan’s sustainability agenda by working with numerous organisations like the Pakistan Business Council, the Pakistan Institute of Corporate Governance and universities to advocate good corporate governance principles, adoption of the code and the benefits of continuous learning. The current priority is to ensure greater appreciation of the environmental and social challenges – the ‘E’ and ‘S’ of ESG – impacting Pakistan.

This work has helped to foster a more robust business environment in Pakistan, with sustainable growth at its heart.

‘The biggest result of the awards was with social media. Things became much more visible, and people were tagging businesses based on their sustainability stance. Today, there’s much more at stake with reputation.’ - Hammad Naqi Khan, CEO at WWF

CIMB Group setting the sustainability agenda in Malaysia

The challenge

A sustainable world cannot be achieved if businesses - and those who finance them - don’t adapt their business models. Leadership is needed from inside businesses themselves, but also from banks and investors who provide access to the finance they rely on.

How the accountancy profession is helping

The accountancy profession, through its influence on business and members in roles at all levels of organisations including the boardroom, plays a key role in making businesses both financially sustainable and sustainable in terms of the environment. Accountants are trained to see the long-term value of pivoting established business models.

One example is ACCA member Nasir Ahmad, chairman of CIMB Group, a leading ASEAN universal bank, who explains: ‘The financial sector has realised that they need to help businesses be sustainable, not just as a business, but as part of the global economy.’

Accountants in the banking sector can work to ensure that funding is distributed fairly, and in the interests of the fight against climate change and the wider sustainability agenda.

At CIMB Group, Nasir has pioneered a set of commitments that steered it in a more sustainable direction.

In 2019, CIMB mapped out three sustainability commitments on climate change, responsible banking, and social impact. CIMB is training its staff on sustainability initiatives. They have also introduced board-level workshops on sustainable business – all to create a culture of sustainable thinking throughout the business.

CIMB also started the The Cooler Earth summit, which aims to convene global citizens, experts, and key stakeholders to discuss how to shape a more sustainable tomorrow.

The impact

CIMB has set deadlines for becoming net zero, exiting coal financing, and ending all financing involved with deforestation and exploitation. The bank is mobilising RM30 billion towards sustainable financing by 2024, plus RM150 million and an annual 100,000 employee volunteerism hours until 2024 towards positively impacting lives, communities and businesses across ASEAN.

With these concerted efforts, a new sustainable precedent has been set. If a business wants to receive financial support, they will need to be sustainable, and act in the interest of the global climate agenda. Accountants in businesses around the world are following the example of Nasir and his colleagues.

‘If all accountants learn what they are capable of doing and apply it to creating sustainable businesses and economies, then they can make a real difference. If they use their ethics, responsibility, and knowledge, they can save the world’.' - Nasir Ahmad FCCA, chairman, CIMB Group.

ACCA president Orla Collins on opportunity for all

The challenge

Inequality of opportunity deprives countless individuals of careers that could benefit themselves and their families. It also deprives employers and economies of valuable sources of people and skills, holding back growth and success. Disadvantage takes many forms, including gender, social background, access to education, race, disability and geography.

How the accountancy profession is helping

Orla Collins is ACCA president and deputy managing director of Aberdeen Standard Investments Ireland. She studied for her ACCA Qualification while working as a cashier for the Bank of Ireland in Dublin. She comes from a family with no tradition of professional life and did not go to university. She says:

‘There are as many ways into accountancy as there are accountants. No two stories are the same. Some come via university, others via foundation-level routes. Some come via a job with a small accountancy practice, in the finance team of a business, or through a ‘Big Four’ graduate scheme. They could have studied remotely and independently; they could be career changers looking to improve their prospects. Whichever direction we followed, we are all the same – proud members, ready to use our experience and ethical training to make a satisfying career and benefit our communities.

‘When we speak about opportunity with ACCA, I think of numerous examples. I think about Malaysia, and my fellow Council member, Datuk Zaiton Mohd Hassan. Zaiton overcame long odds, as the daughter of a cab driver from the disadvantaged Malay community, to become an accountant. She became CEO of a centre which helps underprivileged Malay children into professional life with ACCA.

‘I think of Pakistan, where girls’ education lags behind boys’. Another Council member, Ayla Majid, serves on the board of the Helpcare Society, which helps children from marginalised families, especially girls, attend school. Many of them pursue accountancy with ACCA.

‘In 1904, our founders blew open the magic circle of professional life, until then reserved for the well-connected and expensively educated. We became the first body to admit women in 1909, where accomplishment, talent and hard work were the only entry requirements. Now these once radical ideas of opportunity for all have spread around the globe.’

The impact

With 233,000 members and 536,000 future members in 178 countries, ACCA offers everyone, everywhere the opportunity to access a rewarding career through a range of starting points for all educational backgrounds. Its flexibility allows people to fit their studies around work or childcare commitments, while a digital approach to study and exams reduces geographical barriers. The end result is a profession rich in diversity, individuals with fulfilling careers and economies with the skills for sustainable success.

Supporting small farmers in Nigeria through social enterprise

The challenge

Small-scale farmers in Nigeria have historically found it difficult to access customers and funding, making it difficult for many to prosper. This, in turn, has contributed to food security issues in parts of the country.

How the accountancy profession is helping

ACCA member Akindele Phillips identified an opportunity to address inefficiencies in the food supply chain by providing a platform for farmers to talk business and ‘think finance’, helping them to address challenges with securing capital, agronomic knowledge and access to the market.

Professional accountants are trained to spot challenges for business owners and help mitigate them and can offer solutions to turn ideas into reality. With the knowledge from his ACCA Qualification and background in providing outsourced accountancy services, Akindele co-founded Farmcrowdy to help introduce crowdfunding to Nigerian farmers.

However, the challenge with crowdfunding is that it is often short term. As a result, Farmcrowdy pivoted to connecting smallholder farmers on its farmer network database to institutions, government agencies, and other providers of development funds. It also negotiates with suppliers on farmers’ behalf, shares technical knowledge with them and helps them sell their produce directly to customers, cutting out intermediaries who previously took large shares of the profits. Farmcrowdy’s strategy therefore brings together the key players in the food value chain, including producers and retailers, in addition to the buyers themselves, providing them with access to markets, viable inputs and processed foods. 

The impact

To date, over $15m transactions have been traded on Farmcrowdy’s platform, and 424,000 farmers have entered Farmcrowdy’s network across 36 Nigerian states. So far, the average income of farmers in the network has gone up by 68% and there have been many community improvements, including the building of dams, boreholes, and improved security.

Farmcrowdy has more recently aligned its business model with the ‘zero hunger’ United Nations Sustainable Development Goal (SDG 2).

Akindele values his ACCA membership and the wider network it offers, helping people to communicate across borders and speak the same language of business. As a result, he is able to reach out to other members when brokering international deals, helping to empower many more farmers and continuing to strengthen the local food supply chain in Nigeria and across Africa.

‘We need to solve the food security problem and we need to solve it in a sustainable way’ - Akindele Phillips, co-founder and CEO, Farmcrowdy

Increasing financial literacy in India

The challenge

Financial literacy is a critical life skill that everyone should have. Understanding how to manage finances is crucial to the prosperity of individuals, families, and businesses across the world. Aside from being an important life skill, financial literacy builds a foundation for future skills development and helps drive entrepreneurialism. It also fosters inclusion and social mobility and helps fight poverty. As part of its national agenda, India is encouraging both children and adults to become more financially literate.

How the accountancy profession is helping

ACCA members in India wanted to give back to the community by sharing their knowledge and experience. They recognised the value of teaching children vital life skills, especially those who are disadvantaged. So, they created a two-year programme dedicated to teaching children financial literacy.

Sumathi Mohnani FCCA, a former Integration CFO with IBM, leads the project. She explains: ‘As more people are moving around India for work, there has been a significant shift from large, inter-generational households, to smaller, nuclear households. As a result, children are missing a lot of guidance from their elders. We want to address this knowledge gap and help children become financially literate’.

Aligned with the Indian government’s national education agenda, ACCA’s financial literacy programme is being very well received by the faculty. And students are enjoying the engaging characters and storytelling while also grasping some complex concepts about managing their finances.
This ACCA programme has been designed to be fun, making it much more engaging and appealing to school-age children. Two mascots – a young girl and a robot – take the children through the topics. These topics include how money has evolved (from coins to digital); banking and its evolution; growing money and investments; and protecting your money, and awareness of fraud. To make sure teachers are equipped to teach the topics, ACCA members also created teacher training modules.

The impact

The overall aim is to improve the financial literacy of the country as a whole. A high standard of financial literacy is beneficial to all economies – and to the prosperity of countless individuals. The programme that ACCA has created in India can be adapted to local specifics and taught across the world.

‘If we start at an early age to educate our children on the value versus cost of material things, it sets the foundation for improving the financial literacy for the whole of India’ – Sumathi Mohnani FCCA

Sharing knowledge to help SMEs survive and grow

The challenge

Small and medium sized enterprises (SMEs) are the backbone of economies, representing some 90% of businesses and 50% of employment worldwide. Even in good times SMEs can find it hard to navigate the financial, business and regulatory landscape, but the pandemic made things even tougher for many. Small and medium-sized accountancy practitioners (SMPs) have always supported SMEs as trusted advisers to business, and they help their entrepreneurial clients grow, innovate and create greater value. The challenge for SMPs is keeping their skills and knowledge up to date in this uncertain and fast-changing environment.

How the accountancy profession is helping

In early 2021 as businesses around the world struggled through the pandemic, ACCA created ‘The Practice Room’ as a virtual space for SMPs around the world to come together and share ideas and experiences on how to help their SME clients.
live interactive sessions, hosted by different practitioners, tackled issues ranging from cashflow and microfinance, to digitalisation and leadership under pressure. As economies have emerged from the pandemic, discussions have turned to growth, talent management, international trade and sustainability. Participants can continue discussions in a global LinkedIn group, and a ‘Practice Connect’ hub brings together useful resources and case studies.

One of the hosts, Anastasia Chalkidou FCCA, co-founder of Quantum BITS in Greece, says: ‘We want participants to know that sharing knowledge isn’t giving up your competitive advantage. In fact, it makes us more competitive, because we can help each other identify new sectors, new markets, make new contacts and grow our networks – and ultimately contribute to the sustainable growth of small businesses in all our economies.’ More than 45 sessions have been held, attracting practitioners from 85 countries.

The impact

SMPs can have a huge impact on their local communities, helping their clients grow and be successful, and acting as knowledge and growth hubs. But by their nature, they are often working alone without a network of colleagues to turn to outside the people they employ in their practices. ACCA’s Practice Room initiative has brought SMPs from across the world together at a time when the sharing of knowledge and ideas has never been more critical for the success and survival of SMEs.

‘ACCA’s Practice Room has taken a proactive approach in coming together to support SMPs across the globe in giving them insight and knowledge so they can support businesses and enable them to grow. We are helping to build up SMEs and the economies they operate in right across the world.’ Damien Skeete, partner, Skeete, Best & Co, Barbados

Building the profession to drive prosperity in Ethiopia

The challenge

Ethiopia has been one of the fastest-growing economies in the world over the last decade, but it still faces challenges. Improving public infrastructure and skills is a key priority as it works to improve the prosperity of its 120 million people. A key part of this is a stronger accountancy profession, along with globally-benchmarked regulation, to encourage trade and investment as the country opens up its economy to the rest of the world.

How the accountancy profession is helping

The Accounting and Auditing Board of Ethiopia (AABE) and ACCA are collaborating on a project to further develop the accountancy profession, financed by the World Bank through a fund managed by Ethiopia’s Ministry of Finance.

The project is setting up a national accountancy body to meet the needs of the profession and the wider economy. The new Ethiopian Institute of Certified Public Accountants (ETICPA) will bring together existing accountancy professionals, increase the number of people entering accountancy training, and provide ongoing skills development. It will also be a forum for sharing knowledge and source of expertise for the country more widely.

Meanwhile, AABE will also focus on strong, fit-for-purpose and globally benchmarked regulation and compliance with international standards. By strengthening its regulatory function, AABE will help ensure that the public and investors have confidence that they are basing their decisions on reliable financial information and robust governance. ACCA is supporting by bringing expertise and connections from similar work it has carried out in other economies.

The impact

The project is already driving improved skills and knowledge, along with enhanced relationships and trust in the profession. As it progresses, employers will have access to more of the skills they need to make their businesses prosper. More career opportunities will open up for individuals and the country will be better placed to attract inward investment as better regulation and globally-recognised reporting standards inspire confidence. This puts Ethiopia in a stronger position as it continues on its journey to a more prosperous, equitable and sustainable economy, for the benefit of all its citizens.

‘Professional accountants are needed during economic crises as well when the economy is performing well. As we open up our economy and partner with international institutions, such as the World Trade Organisation, these accountants are the ones best suited to negotiate what’s needed so that these partnerships benefit the government, and the citizens of Ethiopia at large.’ - Hikmet Abdella, Director General of the Accounting and Auditing Board of Ethiopia (AABE).

Navigating the ethics of the digital era

The challenge:

Professional accountants are generally viewed as the ethical conscience of their organisations. They are also at the heart of leveraging technological advances, such as big data, automation, artificial intelligence (AI) and machine learning.  These provide us with huge opportunities, but they also present new ethical challenges, ranging from cybersecurity, confidentiality of data, and ensuring data-driven decisions retain an ethical lens. An ethical approach is also needed on technology and ESG - environmental, social and governance – so that advances such as AI are in the best interests of society and the environment.

How the accountancy profession is helping:

ACCA has been leading thinking and mobilising action in this area through its research and engagement activities, prompting fresh thinking and rallying action. Professional accountants, working in a huge range of roles across organisations of all shapes and sizes, are well placed to drive action from the inside.

In 2017, ACCA conducted a global study among 10,000 professional accountants and over 500 C-suite leaders on ethics and trust in a digital age. The report provided a wealth of information and knowledge sharing. It called on professional accountants to build their knowledge of emerging technologies, combine process control with a strategic view to reduce unintended consequences, and look at mechanisms for reporting unethical behaviour.

Further research in 2020 explored how we should manage the coming mass adoption of AI in an ethical, responsible manner, essential if we are to derive long term value from it. This involved a survey of over 5,000 finance professionals and 42 online discussion groups, carried out with our research partner, Chartered Accountants Australia and New Zealand. The project also received guidance and support from the International Ethics Standards Board for Accountants (IESBA).

The impact:

The wide engagement and work to share research findings in an impactful way is helping drive new thinking across countless organisations. Both reports were widely covered in the global media and used as the basis for events and discussions, helping to create much needed focus on the ethical implications of the rapid digital advances we are all experiencing. This is helping the world harness the opportunities provided by technology in ways that are positive, and reduce the risks of unintended and damaging consequences.

‘The question is always: how are we acting in the public interest, and how is this changing? There are always new developments, take cyber-attacks for example, the factors involved in public interest are always evolving.’ – Lucy Winskell, chair of the regulatory board, ACCA.

Mobilising climate action from inside business

The challenge

There is an urgent need for business leaders to grasp the enormity of the climate emergency and act. The accountancy profession is in a powerful position to help by mobilising its many thousands of members who work inside businesses of all shapes and sizes, and in a wide variety of roles.

How the accountancy profession is helping

Accountants and finance professionals have a critical role to play in accelerating change. As well as putting sustainability at the heart of decision-making and championing responsible business practices, the profession can act as powerful advocates for change.

ACCA aimed to leverage the profession’s influence and drive positive action through a recent professional insights report, Climate action and the accountancy profession: building a sustainable future, analysing the views of 3,000 finance professionals in the public and private sectors. The research revealed a chasm between organisations’ good intentions and actions taken, highlighting a clear opportunity for the profession. It included a series of specific steps that individual accountants can take inside their businesses to drive change.

Timed to coincide with the lead up to COP26, the research involved a series of roundtables attracting hundreds of representatives from business, regulatory bodies, policymakers, standard-setters, the accounting profession, academia and elsewhere to discuss the challenges, solutions and the part accountants can play in tackling climate change. Participants joined from around the world in what truly became a global initiative.

The impact

This project helped to rally the profession and inspire change inside businesses. As well as building awareness in the media of the urgent need to act, the report powered hundreds of conversations among leaders of governments, public and private sector organisations on the pivotal role of the profession in making change happen. For example, at the 2021 New York Climate Week, ACCA partnered with the International Federation of Accountants to host a thought-provoking discussion among investment, finance and accounting professionals.

By highlighting the gap between good intentions and tangible actions on climate change, ACCA’s aim is to focus minds and direct action to where it’s needed most – and the many conversations the research has sparked have helped to inform and inspire actions across countless businesses, driving a more sustainable approach.

‘Representing finance and treasury on Tesco’s journey to set science based climate targets, I have since run our Renewable Energy Steering Committee and negotiated offsite renewable energy deals resulting in the build of nine new wind and solar farms in the UK.’ - Alexander Ashby FCCA, head of treasury markets, Tesco plc

Building a public sector that works for everyone

The challenge

The public sector accounts for 33% of the global workforce and 30% of global GDP. Its budgets everywhere are under pressure at a time when the services they provide are needed most. The sector faces huge challenges helping economies recover from the pandemic, dealing with ageing populations, environmental crises and declining infrastructure, and ensuring education, security, health and social care. The challenge is paying for these services, while getting the best possible return for society from the taxes people pay to fund them.

How the accountancy profession is helping

Public sector finance professionals play a valuable role in meeting this challenge. ACCA is dedicated to contributing to an effective public sector that commands the trust and respect of the whole of society.

The ACCA International Public Sector Conference responds to this, uniting leaders from around the world. Since it started in 2010, ACCA has hosted the event around the globe – including in London, Singapore, Johannesburg and Prague. The 2021 event was held online with the theme ‘Leading recovery in public finance’. It attracted more than 15,000 public sector finance chiefs, senior auditors and accountants, and academics. They heard talks by Helen Brand, ACCA chief executive; Ian Ball, Professor of Public Financial Management, from Victoria University of Wellington; and Michael Hadjipantela, Minister of Health for Cyprus Government.

The conference over the years has led the way in calling for accrual accounting, which measures value against the lifetime of an investment rather than the immediate cash impact. It has also called for honest contract tendering, with fully public registers, to increase accountability and tackle fraud.

The impact

The annual event has served as a powerful rallying point to strengthen the work of the public sector. Every year it underlines how healthy economies and societies need strong public sectors as well as thriving private sectors. The impact of the conference is widespread, with benefits rippling around the world thanks to ACCA’s global network of dedicated public sector professionals, including more than 67,000 ACCA members and future members.

‘Even societies and nations which place the free market and private enterprise first in their economic models must still take as their foundation a strong public sector, where the profits of flourishing enterprises help sustain a good environment; infrastructure that works; and all those public services which make a civilised and happy society for all citizens. And the world needs public sector accountants to provide the leadership, behaviours and standards to meet the challenges we all have.’ - Mark Millar FCCA, former president, ACCA and deputy chair of East Suffolk and North East Essex NHS Foundation Trust, England