Prioritise SME development, ACCA urges governments
By Gift Chanda
Wed 13 June 2012, 13:24 CAT
GOVERNMENTS need to take a broader approach in addressing challenges of small business financing, urges the Association of Chartered Certified Accountants.
In its latest Global Agenda on Access to Finance for SMEs, the ACCA Global Forum for SMEs called on global leaders to offer more support to Small and Medium Sized Enterprises (SMEs) in gaining access to finance by ensuring that a broader approach is taken to policy development for the SMEs sector and that there are greater levels of co-ordination at a global level.
It observed that more coordinated and consistent efforts were needed when it comes to SME financing policy.
The ACCA's call for increased financing to small businesses comes ahead of the G20 summit which will be held in Mexico between June 18 and June 19, 2012.
Mexico, which holds the Presidency of the G20 for 2012, has put fostering financial inclusion to promote economic growth among its five priorities for the G20 this year.
The Global Forum's agenda outlines the challenge facing the G20 in the area of financial inclusion, and that official 'SME' or 'enterprise' policy forms only a small part of the actual policies relevant to the development of SMEs.
The Global Forum argues that more attention ought to be given to how central government departments impact on SMEs who may have more influence on how SMEs access finance than the departments or agencies responsible for business and enterprise.
"For example, those departments responsible for fiscal policy, justice or employment law may well have a bigger effect on SMEs' access to finance - through their decisions on tax policy on equity funding, setting up or developing better access to efficient credit information facilities right through to well-functioning property and contract law frameworks," ACCA stated.
To reduce SMEs defaulting on loans, the Global Forum advised leading institutions such as banks to actively get involved in their SME clients' businesses by offering professional advice.
Labels: ACCA, SMEs
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PPP has been a bold experiment - Mukaba
By Joan Chirwa-Ngoma
Mon 16 Apr. 2012, 13:27 CAT
ACCA country manager Mukaba Mukaba says public-private partnership has been a bold experiment in public sector procurement over the past couple of decades in terms of its scope and innovation.
And developed economies are using Public Private Partnerships (PPP) in a fashion more appropriate for developing economies, according to a major new research project from the Association of Chartered Certified Accountants (ACCA).
The research commissioned by ACCA and conducted by Manchester Business School themed Taking Stock of PPP and PFI Private Finance Initiative around the world, is the first global comparison of different countries' PPP programmes.
The report uncovers developed economies with sound institutional frameworks for PPP but struggling to deliver value for money. Meanwhile, developing economies have poor PPP monitoring and review frameworks but are forging ahead with PPP projects that deliver otherwise unaffordable key infrastructure.
"Like all experiments, there have been mistakes, errors, and misunderstandings, but also some successes. Despite the problems, private finance has firmly established itself as a fixture in public sector procurement around the world and looks set to remain prominent," said Mukaba in his comments following the research findings.
"It will be interesting to see how PPP develops in the future, with improvements required in both developed and developing economies."
He noted that developing economies have several institutional improvements to make, while developed economies were still searching for the elusive value for money.
"The report is the first of its kind and represents a valuable contribution to our understanding of the state of PPP around the world," said Mukaba.
The government a few years ago embarked on infrastructure improvement through PPP. But recently, contracts to upgrade five border posts under a PPP arrangement were terminated when a commission of inquiry instituted by the new government found that the contracts were irregularly awarded.
And Professor Graham Winch of Manchester Business School said PPP in the developed world should be very different to PPP elsewhere.
"However, many developed economies are still approaching PPP as if they were developing economies: hoping to use PPP to procure infrastructure they can't afford thanks to public spending constraints. It delivers infrastructure, but at a far higher cost than otherwise might be expected. Is this cost too high? Taxpayers and public spending watchdogs seem inclined to think it is," he said.
"This approach has resulted in a pretty bad reputation for PPP amongst the public in some developed economies, but developing economies shouldn't let this put them off PPP."
For developing economies, according to Prof Winch, PPP isn't a luxury but a necessity.
He noted, however, that "the speed with which developing economies are adopting PPP in their public procurement is leaving institutional monitoring and oversight behind".
"The use of PPP might be necessary, but if they're not careful, developing economies could be in for a nasty PPP surprise in the coming decades as poor planning and oversight of projects comes back to bite them," warned Prof Winch.
The report found that there's no common PPP definition around the world. "Broadly, it is the use of private finance to provide public infrastructure but agreement generally ends there. Only in rare cases can private finance offer greater value for money than traditional public sector procurement. Private finance is generally more expensive than public finance, there is a high premium payable for risk transfer, and there are important accountability issues around the commitments made by the public sector to private finance providers," the research stated in part.
"Developed economies behave like developing economies. The additionality of PPP - providing otherwise unavailable funds for public procurement - is more likely to be of benefit in developing countries, where capital typically comes from outside the country (due to low national wealth) and the economic stimulus is relatively larger.
"In reality, almost all countries use PPP for additionality reasons, no matter the official justification. The UK, for example, has for three decades pursued a form of pseudo-additionality with regards to PPP. This has provided infrastructure sooner than otherwise available, but it has created a huge debt overhang on the public sector and few projects have achieved value for money. Singapore, on the other hand, with large national reserves, is committed to PPP on a value for money basis and consequently uses PPP very rarely."
Labels: ACCA, PPPs
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'Accountancy is the global language of commerce'
By Moses Kuwema
Sun 23 Jan. 2011, 04:00 CAT
ACCOUNTANCY is the global language of commerce as it underpins economies the world over, says ACCA director for sub-Saharan Africa Jamil Ampomah.
Ampomah said this during the Association of Chartered Certified Accountants (ACCA) and Institute of Directors of Zambia (IoD) Memorandum of Understanding signing ceremony on good governance at Southern Sun Hotel on Friday. Ampomah said professional accountants had a vital role to play in the development of the economy, business and society.
“The global economy relies on the high quality financial information and high quality audits that accountants provide,” Ampomah said. “Our profession does much more than number crunching; we challenge people and organisations, clients and colleagues, to think and act differently, to provide clarity and rigour to help create and sustain prosperity.”
He said the core to the future was the need to place finance at the heart of business and producing the accountants that businesses need to endorse the best practice in corporate governance.
Ampomah said there was need to provide high-quality, skilled accountants who understand the business environment and how organisations operate and could contribute to the running of efficient, effective and strong organisations.
Ampomah said the MoU was important because it would serve to develop the finance profession.
And IoD president Juule Simuule said corporate governance was a fundamental tool for any economic development of a country.
Simuule said the IoD always advocated for good corporate governance and accountants were good partners in this area.
“One of the most difficult challenges Zambia and the sub-region face is lack of good governance at both the political and economic levels. Whilst there are a number of institutions tackling political governance, for example governance secretariat at the Ministry of Justice and African Peer Review Mechanism, only the Institute of Directors of Zambia is currently tackling issues of economic and corporate governance in Zambia through training, capacity building and awareness campaigns,” Simuule said.
He said directors were expected to conduct themselves ethically to ensure the companies and organisations were properly managed and controlled in a transparent and accountable manner thus ensuring and preserving the interests of stakeholders.
Simuule said the activities of the Memorandum of Understanding would thus reach a wider audience because there were thousands of ACCA qualified accountants in every sector of the economy.
Labels: ACCA, ACCOUNTING
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Global economic recovery may be a mirage, warns ACCA
By Florence Bupe
Wed 13 Jan. 2010, 04:00 CAT
THE Association of Chartered Certified Accountants (ACCA) has warned that the anticipated global economic recovery may turn out to be a mirage in view of the slowdown in the recovery rate.
According to a Global Economic Conditions Survey carried out by the institute, there are suggestions that a full economic recovery was moving further away by the day.
“While the fourth quarter Global Economic Conditions Survey by ACCA has provided the accountancy body with its first firm evidence that economic conditions are finally improving, it also suggests that a full recovery is moving further away by the day. Despite all this good news, the rate of global recovery is actually slowing down,” the survey revealed.
The survey attracted 1,700 respondents from the financial sector in 99 countries across continents, most of whom projected a very weak recovery, with 11 per cent expecting the downturn to last another three years.
The survey indicated that investments were still falling across all regions and sectors even though evidence of market failure in the financing of investments was becoming less prominent.
It was further observed that unemployment levels had continued to rise while the state of government finances continued to be a source of worry for the finance sector.
“Unemployment is still rising and the state of government finances continues to worry many accountants, with a real concern that the public sector will become a drag on the recovery as heavily indebted governments are forced to make cutbacks,” the survey disclosed.
The survey revealed that Africa was at the lead of economic recovery, with its business revenues rising faster than any other region.
Africa’s business confidence is also in the lead.
And ACCA director of technical policy and research Steve Priddy has forecast at least another year of challenging economic conditions.
Labels: ACCA, GREAT DEPRESSION II
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State committed to SMEs’ productivity
By Times Reporter
THE Government will address the needs of small and medium enterprises (SMEs) and enhance their productivity,Vice-President George Kunda (right) has said.
Mr Kunda said in Lusaka yesterday that the Government would continue allocating resources to relevant entities for SMEs’ empowerment in order to increase their contribution to the country’s gross domestic product (GDP).
Mr Kunda said this when he opened the Third Association of Chartered Certified Accountants (ACCA)/Zambia Chamber of Small and Medium Business Association (ZCSMBA) SME conference.
He said because of the great importance the Government attached to SMEs, it established the Zambia Development Agency and the Citizens’ Economic Empowerment Commission to stimulate economic growth.
“Government will continue to allocate resources to these entities so that our people can be empowered more and realise their aspirations in their quest to grow their business and contribute to higher GDP.
“In addition, Government is currently reviewing policy frameworks to ensure that they address the current needs of the SME sector,” he said.
Mr Kunda called for innovation among the business community in order to cope with the demands of the current economic trends.
He said that the Government was committed to developing policies and institutional frameworks which would contribute to a conducive environment for growth and transfer of ownership in line with international standards.
He emphasised the need for the business community to engage in e-business and keep up with the new technological era in which digital facilities were actively in use.
Earlier, Commerce Trade and Industry Minister, Felix Mutati challenged the SMEs to take advantage of the opportunities the Government was creating.
ACCA deputy president, Brendan Murtagh said his association would continue supporting the Zambian SMEs to ensure growth.
Mr Murtagh said the SMEs needed to fully understand accounting regulations, hence the conference which has now become an annual event facilitated by the ACCA.
In his vote of thanks, ZACSMBA executive secretary, Maxwell Sichula hailed the Government for ensuring the smooth growth of the SMEs in the country.
Labels: ACCA, BRENDAN MURTAGH, FELIX MUTATI, GEORGE KUNDA, SMEs, ZCSMBA
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SME policy under review - Kunda
By ANGELA CHISHIMBA
VICE-PRESIDENT George Kunda says Government is currently reviewing the policy framework of Small and Medium Enterprises (SME’s) to ensure they address the current needs of the sector.
“We will in due course launch the new SME policy which will enhance how we are developing this sector,” Mr Kunda said.
He said today’s businesses operate in a world that is increasingly becoming sophisticated and complex compounded by increased technological advancement.
Mr Kunda said this in Lusaka yesterday when he officiated at the ACCA and Zambia Chamber for Small and Medium Business Association (ZCSMBA) Annual Small and Medium Enterprises Conference.
Mr Kunda said there is need to focus and direct resources to meaningful research and development that will facilitate the invention of new tools, methods, processes and approaches in order to optimize performance and improve productivity.
Mr Kunda said Government is committed to developing public policies and institutional frameworks that contribute to a business environment that is conducive to entrepreneurship and facilitates entry, growth and transfer of ownership which are coherent at international, regional and local levels.
He said Government is committed to ensure that businesses in Zambia remain competitive and more productive “in these unprecedented difficult economic times affecting the whole world”.
“This explains why the government established two key organisations namely the Zambia Development Agency and the Citizens Economic Empowerment Commission both dedicated to promoting local investment in order to stimulate economic growth,” Mr Kunda said.
He said Government will continue to allocate resources to the two entities so that people can be empowered more and realise their aspirations in their quest to grow their businesses and contribute to higher Gross Domestic Product (GDP).
Mr Kunda said through the entities and other avenues, government will continue to allocate financial resources to foster growth.
He appealed to SME owners and managers and all entrepreneurs to seize the opportunity to be more creative and innovative in their business approaches and strategies such as financial management, taxation, credit control and debt management.
Mr Kunda also urged Zambian business owners to embrace e-business.
“Through the strategic utilisation of e-business within and outside the company’s environment, we expect small businesses to enhance productivity and efficiency and at the same time create new business opportunities and change the way businesses relate to each other,” he said.
Mr Kunda said e-business is swiftly changing the way of doing business and is increasingly having an influence on economic growth in the years to come.
He commended ACCA for supporting the SME sector through its learning and development, research and consultancy initiatives in partnership with ZCSMBA.
Mr Kunda said last year ACCA signed a memorandum of understanding with Zambia Institute of Chartered Accountants (ZICA) and Eastern, Central and Southern Africa Federation of Accountants (ECSAFA), to provide audit monitoring services to ZICA which he hopes will enhance the quality of audit work and improve accountability and transparency in Zambia.
And Minister of Commerce, Trade and Industry Felix Mutati urged the SME sector not to bemoan the financial crisis but turn it into an opportunity.
“We are all affected by this crisis but we need to get up and seize this opportunity,” he said.
ACCA deputy president Brendan Murtagh said SMEs play a key role in the development of businesses.
He said SMEs need to be supported if the economy is to recover at a fast rate.
Labels: ACCA, GEORGE KUNDA, SMEs, ZCSMBA
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Kunda hails role of accountants in fight against corruption
Written by Mutale Kapekele
Wednesday, May 13, 2009 3:40:01 PM
VICE-PRESIDENT George Kunda yesterday said the country needs highly qualified accountants to promote transparency and accountability in public resource management. And Association of Chartered Certified Accountants (ACCA) vice-president Brendan Murtagh has commended Zambian students for frequently featuring on the list of the organisationís top performers.
During the donation of mealie-meal worth K10 million by the ACCA at the Disaster Management and Mitigation Unit (DMMU) in Lusaka, Vice-President Kunda said accountants had a major role to play in the fight against corruption.
“I am aware that ACCA has been working closely with the Auditor General’s office and Zambia Institute of Chartered Accountants (ZICA) among others in promoting the accounting profession in Zambia,” Vice-President Kunda said. “This is encouraging as professional bodies, such as ACCA, should promote good corporate governance if we are to achieve a corrupt-free nation and promote transparency. This country needs highly qualified accountants to promote transparency and accountability even in public resource management.”
The Vice-President said ACCA qualified accounting professionals in Zambia should be commended for ‘exerting enormous positive impact on the economy both in industry and financial institutions’.
And Murtagh disclosed that Zambian ACCA students had continued to feature on the list of top performers in the organisation’s examinations.
“Today, we have more than 1,000 qualified Zambian members and 8,500 students which means that Zambia is among the top 20 largest markets which ACCA serves around the world and is of great importance to us,” Murtagh said. ìThis importance is not just about the number of members and students in the country, but also their high quality. Zambian students frequently feature on the list of top performers in our examinations. Given that we now have 362,000 students in 170 countries, this is a great achievement.”
He also commended accounting professionals for choosing to work in the country after the completion of their studies.
“Most of our Zambian affiliates and new members choose to work in the country and in doing so, have contributed significantly to productivity over the years,” he said.
Murtagh is in Zambia to attend the third annual conference of ACCA which opens today.
Labels: ACCA, DMMU, GEORGE KUNDA
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Musokotwane cautions against discouraging investors
Written by Chiwoyu Sinyangwe
Wednesday, February 04, 2009 11:24:49 AM
FINANCE minister Situmbeko Musokotwane has advised against creating an impression that Zambia’s failure to attract huge investments largely stems from it being the most corrupt country.
During a post-budget breakfast discussion organised by the Association of Chartered Certified Accountants (ACCA) Zambia chapter in Lusaka yesterday, Dr Musokotwane noted the need to create confidence and bring investments in the country in as much as corruption was being fought. He however admitted that corruption was endemic in the country.
“Yes, let us fight corruption but let us not create an impression out there that Zambia is the most corrupt country in this world and that is why it is not attracting investments. That is not true. Let us all work together, create confidence and bring in investments to this country as we fight corruption because that way, we shall move forward,” Dr Musokotwane said.
“I can’t deny that there is corruption in Zambia but we must always look at solutions.”
Dr Musokotwane said there was need to underplay the prevalence of corruption, saying even in the current scenario, the country could still continue to attract foreign direct investments (FDIs).
“There is corruption yes but let’s overplay things to imagine that it is only when there is zero corruption when you can attract investments,” he said.
“We know that our neighbouring countries and others who attract investments may be slightly better than us but I wouldn’t say they are 10 or 15 times better than us, we are almost at par. So, let us be careful, let us do much more to induce investments in this country because it is investments that are going to create the jobs and tax revenue.”
And Dr Musokotwane also defended the decision by the treasury to give more tax concessions to mining companies while making modest adjustments to personal taxes.
He also explained that the government was trying to balance on how the tax burden was going to be reduced between incomes coming to the pockets and the ability to sustain jobs.
Dr Musokotwane also said the government decided to increase the number of farming equipments to be exempted from duty to ensure that the sector absorbed people expected to be laid off owing to reduced industrial activities in the country.
“Our emphasis has been that we do something on pay as you earn (PAYE). This is why we have do so, but also this is the time that we are threatened with a possibility of so many job loses given this crisis. So, our thinking has been that can we do something to reduce the tax burden on the people who provide the jobs,” said Dr Musokotwane.
“Obviously, reducing PAYE is desirable but all it does is to improve your ability to consume whereas it does not address the challenge of the tax point of view like how to sustain the current jobs and create more.’’
Labels: ACCA, CORRUPTION, FDI, NEOLIBERALISM, SITUMBEKO MUSOKOTWANE
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Zambia's foreign missions misappropriating funds - Auditor General
Written by Chibaula Silwamba
Monday, November 24, 2008 8:20:55 PM
AUDITOR General Anna Chifungula on Monday revealed that
the audits of 14 foreign missions have showed persistent misappropriation and misapplication of public funds and other resources. And the Association of Chartered Certified Accountants (ACCA) has awarded Chifungula with the prestigious ACCA achievement award 2008 for Africa and Mideast region for her outstanding contribution to developing the accountancy and finance profession.
In an interview in Lusaka, Chifungula expressed worry about misappropriation and misapplication of public resources by personnel at Zambia's embassies and high commissions. "We have audited most of the foreign missions this year, of course we audited according to the money they have at their disposal," Chifungula said.
"We audited about 14 missions and still there are issues coming out from there which I cannot discuss now until the report comes out but most of them really are still showing the same levels of misappropriation, misapplication of funds and things like that. All of them will be in the report." Asked about the names of the foreign missions and amounts misappropriated and misapplied, Chifungula responded: "That I can't tell you until I tell my bosses."
Further asked if there were new measures put in place to discipline officers that mismanage public resources especially in foreign missions, Chifungula said she did not know about the disciplinary measures that had been put in place. "I don't know that there are some disciplinary measures put in place? I have not been informed about them.
I think it's the normal way of dealing with the report which is being done; which is we report, it goes to the Public Accounts Committee (PAC) and then from the PAC they report to the main House [Parliament] then from the main House a report finally goes to the Ministry of Finance [and National Planning]. It is at that place where punitive measures are carried out. That has not changed," Chifungula said. However, she said former secretary to the Treasury Evans Chibiliti, who is now deputy Secretary to the Cabinet in charge of finance, had put in place several financial management measures to try and seal some loopholes that were in existence.
"I hope that will be continued with the new team that is there," she said. Two months before his death, late president Levy Mwanawasa had warned that he would discipline personnel in Zambia's foreign missions who were mismanaging public resources.
Mwanawasa had said the preliminary audit report he had received revealed that there was high abuse of public resources in the missions. On her award, Chifungula said she was one of the five professional accountants to receive the ACCA achievements awards for 2008, each from a continent. "The Africa and Mideast one was presented to me and the inscription they put here reads: 'ACCA achievement awards 2008.
Anna Orlia Chifungula for her outstanding contribution to developing accountancy and finance profession,'" she said. "But on top of this a lot of other things were said for the office; our fight against corruption, our helping other auditing institutions in Africa to build up their audit departments, our involvement in the audit of the African Union and SADC.
All those came out as some of the issues that we have been involved in despite having only restructured in the last five years, they felt that was quiet a big achievement within a short time and required recognition." Chifungula said currently nine officers from her office were in Liberia. And deputy Auditor General Mwamaka Mulanga commended Chifungula on her achievement, saying it had led to the AG's office being recognized worldwide. He also urged the officers to study hard. "Funding for those who want to study is there," said Mulanga.
Labels: ACCA, ANNA CHIFUNGULA, AUDITOR GENERAL, EMBASSIES
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ACCA launches youth entrepreneurship
By NKOLE CHITALA
THE Association of Chartered Certified Accountants (ACCA) has set aside K45 million as youth fund to help facilitate entrepreneur skills training. Deputy Minister of Sports, Youth and Child Development, Angela Cifire, said the fund was set aside this years and would run over a period of three years.
Ms Cifire said Government was happy with the organisation on the efforts made to assist youths in the country. She said Government would continue to encourage initiatives aimed at uplifting the living standards of youths.
She was speaking at the trainees meeting held at Mulungushi conference centre in Lusaka recently.
She said that with the fund set aside, the association would soon enter into partnership with a youth club, Junior’s Achievement Zambia Chapter, to help facilitate entrepreneur skills training which would run as a replica of real businesses in industry.
Ms Cifire said Government had revised the national youth policy to bring it in line with the ever-changing global and national trends.
She said the revised policy took into account the need to attain the Millennium Development Goals (MDGs) through partnerships and networking among others.
The policy has outlined the vision objectives and strategies and has provided the implementation framework for various youth development programme.
She said funding for the education sector had been increasing steadily over the past couple of years, which was not the case in more than two decades. And Ms Cifire urged youths to adhere to global standards in terms of professional conduct, underpinned by a code of ethics.
“Please embrace this expertise as you establish a reputation for integrity and professional standards that are transparent, responsible and in the public interests,” she said.
ACCA has 122,426 members and global students while affiliates figures stand at over 325,606.
Labels: ACCA, ANGELA CIFIRE, ENTREPRENEURS
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