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THE CHARTERED
ACCOUNTANTPublished by The Institute of Chartered Accountants of Zimbabwe. Not For Sale
OCTOBER 2019 │ ISSUE NO. 18
ICAZ, CIMAink deal
ICAZ refinesservices
Zim CAshines in Botswana
‘Let us reclaim our relevance’
Kuipa rallies CAs at Sun City
1October 2019
| www.icaz.org.zw
Contents
THE CHARTERED
Accountant
REGULARS02 PRESIDENT’S NOTE
18 TECHNICAL REPORT
IPSAS a game-changer
ICAZ NEWS04 New president rallies CAs at Sun City08 ICAZ refines services10 Female CA numbers still low20 ICAZ, CIMA agree on collaboration
24 Zvaravanhu joins PAFA board
PAFA is a non-profit organisation with a membership of 53 professional accountancy organisations across 43 countries.
OPINION16 AfCFTA a key prosperity enabler
PROFILE14 ONE ON ONE WITH Tarisai Masenda - Zim CA entrepreneur in Botswana
See exclusive report on page 6.
Face to face with the energy minister at the Sun City
Published by:
for the Institute of Chartered Accountants of Zimbabwe2nd Floor, Green Bridge South,
Eastgate Complex, Harare, Zimbabwe Web: www.financialgazette.co.zw
Tel: (+242) 781 571-9
EdITORIALEditor: Edinah Gemu
Editorial Advisors: Omega Ukama, Gloria Zvaravanhu
PROdUCTIONHead of Production: Kudzai Rushambwa
Graphic designer: Godfrey Wozhele & Darius Mutamba
SALES & MARkETINGTeam Leader: Lewis Chikurunhe
Head of Advertising: Edwin VengesaSales Executive: Christobel Washaya
Photography: Freedom Mashava
YOUR OPINION MATTERS We love to hear from you, so if you have an opinion about any of the topics you have read or others, feel free to contact us on:
The Chartered Accountant c/o The Institute of Chartered Accountants of Zimbabwe 2 Bath Road, Cnr. Sam Nujoma Street, Harare, Zimbabwe.
Phone: +242-252 672, +263 772 192 060/61, 08677004297 Email: [email protected] Website: https://www.icaz.org.zw If you have a story to tell and would like to be profiled contact us on: Email: [email protected]
2 October 2019
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This house, Integrity House, was built on a solid foundation. It is the responsibility of each one of us to preserve the good
that was laid by those before us. To the recently qualified members, I say “welcome to our Institute” we look forward to sharing a good rapport with you. It is my sincere hope that we will see you participating in your Institute’s activities.The 2019 Winter School was held at Sun City in South Africa, from August 31 to 01 September 2019 under the theme: “Disrupting Innovation-Investing for Growth”. The flagship event was a huge success with 320 delegates in attendance. This was the second ICAZ Winter School to be held outside of Zimbabwe since the formation of the Institute in 1918. I would like to say well done to the South African Chapter, the organisers of the event, for a job well done. As CAs, we should not settle for the status quo in our quest to bring investment into Zimbabwe as we structure financial models that will resuscitate the economy.However, there are areas where we have fallen short as Zimbabwean Chartered Accountants. If we look around, we have almost become comfortable with living in uncertain conditions,
one might even say volcanic, with a number of wild “beasts” roaming freely within our country. Beasts like corruption, low FDI, foreign currency shortages, fuel and incessant power cuts, challenging key accounting and auditing issues (there’s a school of thought that as an institute we came to the functional currency party a bit too late, more like the invited guest instead of the host!).Our just over a 100-year-old Institute is regarded as being “the pre-eminent professional body in the development and promotion of accountancy, assurance and advisory services, business and good governance practices.” In the cricket world achieving 100 runs/century is a key milestone in one’s professional career, a milestone that is celebrated for time memorial. Not only has our Institute achieved that proverbial but has gone beyond that to become 101 years! You see my fellow colleagues, what good does it do us to claim to be the pre-eminent professional body, but fail to deliver? What good does it do us if we are labelled as ‘cowards’ in some circles and fail to rise to the occasion when required. If there is one thing we understand in this profession, it is timely deliverables. Therefore, with the advent of automation and digitalisation
there is no such time as this to ensure that deliverables are not only timely but relevant and cost competitiveAccording to a research done by former ICAZ President Mr Martin Makaya in 2018: ”… in a sample of 53 Zimbabwe stock exchange-listed entities, 67 out of 91 (73,6%) board members are ICAZ members; for 14 sampled banks, 26 out of 140 (18,5%) board members are ICAZ members.” This tells us that we are well positioned to utilise our hard-won skillsets to provide invaluable input and guidance for the betterment of our economy. The question is ARE WE?.A key criticism has been the radio silence or the delay in response from this body, with regards to the wild beasts I have mentioned earlier on ie corruption, functional currency, key accounting matters, low FDI just to name but a few. This has undoubtedly dampened our standing in terms of value we provide both within and outside of our Institute. I challenge all ICAZ members that there
is no such time as this, to regain our footing, and participate at various levels of both the private and public sectors while speaking to the core values of this institution: Responsibility, Honesty and Integrity. Let us RECLAIM OUR RELEVANCE fellow members. To do so, we will engage relevant organisations, through building strategic partnerships that will enable us to tackle 5 key areas:
a. Corruptionb. Boost Investor Confidencec. Accounting and auditing issues eg
inflationd. Digital and Innovatione. Community strengthening
Our position aligned with our belief in helping to tackle corruption will be clear. We cannot afford to be silent any longer or play the diplomatic card yet we all know how corruption has not only destabilised our beloved country Zimbabwe but has threatened the future of our children through delays in sustainable economic development. Fellow members, we have taken a firm position which says that, we, as ICAZ condemn corruption and related corrupt practices. Fighting corruption is one of first key steps Chartered Accountants (Zimbabwe) must take in order to boost investor confidence and attract foreign direct investment. As ICAZ on 30 September, we therefore launched the Anti-Corruption Campaign to voice our stance against corruption. This is in the form of a public campaign to encourage the shunning of corrupt activities in both the private and public sector in an effort to contribute towards stamping out corruption and resuscitating the economy. The Institute is running this 100-day Campaign against corruption dubbed “ICAZ 100 Days 100 Voices” Campaign Against Corruption with ICAZ members being the “100 voices” speaking out in the campaign. The campaign is on both digital and print media. I would like to express my appreciation to you all members, council, ICAZ staff for their unwavering commitment. That collective effort makes the institute what it is today.
Fungai C. KuipaICAZ President
President’s Note
Dear members
It is my honour and great pleasure to take up the mantle as the new President of this just-over-a-century old institution. As the oldest and largest professional body in Zimbabwe, we have much to celebrate through the vision, leadership and efforts of so many before us.
Fungai C. Kuipa (ICAZ President)
CAs Fight Against Corruption
3October 2019
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The
Echo
Syst
em B
DO
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A Warm Welcome to the new ICAZ Presidium
BDO Zimbabwe Chartered Accountants would like to congratulate the incoming Institute of Chartered Accountants Zimbabwe presidium on their appointments. We wish you all the best.
Mr Tumai Mufunga(Jnr Vice President)
Mr Fungai Kuipa ( President)
Mrs Duduzile Shinya(Snr Vice President)
People who know, know BDO
Audit | Tax | Advisory
BDO Zimbabwe, a Zimbabwean partnership, is a member firm of BDO International Limited, a UK companylimited by guarantee, and forms part of the international BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.
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+2632422703876
@BDOZimbabwe BDOZimbabwe
Offices in Harare, Bulawayo & Mutare
4 October 2019
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THE Institute of Chartered Accountants of Zimbabwe’s (ICAZ) newly-elected president Fungai Kuipa, has challenged the profession to reclaim its relevance in the country, saying it has fallen short of its befitting standing.
Omega Ukama
In his inaugural speech at this year’s Winter School at the Sun City resort in South Africa, the Ernst & Young partner
reminded chartered accountants (CAs) of the findings of former ICAZ president Martin Makaya’s study in 2008, that in a sample of 53 Zimbabwe Stock Exchange-listed entities, 67 out of 91 board members were ICAZ members.He said this shows that CAs are well-positioned to provide invaluable input and guidance for the betterment of the economy.“But sadly, we have not,” Kuipa said.“You see my fellow colleagues, what good does it do us to claim to be the pre-eminent professional body, but fail to deliver. What good does it do us if we are labelled as cowards in some circles and fail to rise to the occasion when required.“If there is one thing we understand in this profession, it is deliverables,” he said.The new president noted that CAs had been criticised for turning a blind eye to corruption.“This has undoubtedly dampened our standing in terms of the value that we provide both within and outside our institute.“I challenge members here present and those tuned in via live streaming that there is no such time as this to regain footing, and participate at various levels of both the private and public sectors while speaking to
‘Let us reclaim our relevance’
our core values: Responsibility, Honesty and Integrity.“Let us reclaim our relevance fellow members, let us take hold of the narrative and drive it towards the kind of body we all desire to be a part of. To succeed we all need to work together to reclaim our relevance,” Kuipa said.He also took the opportunity to appreciate and celebrate the contributions and achievements of ICAZ’s past leadership.“It is my honour and great pleasure to take up the mantle as the new president of this just-over-a-century old institution. As the oldest and largest professional body in Zimbabwe, we have to celebrate the vision, leadership and efforts of so many before us,” he said. Kuipa, who was previously the senior vice president, replaced Deloitte partner Tapiwa Chizana, who stepped down after the expiry of his term, at the Winter School.Duduzile Shinya (nee Mothobi), who is the chief financial officer at Amalgamated Brands – the holding company of Cairns Holdings, Lobel’s Bread, Cailogistics and Cailo Marketing Services – was elected the senior vice president.Deloitte partner Tumai Mafunga is now junior vice president. He also sits on the Global Deloitte Leadership team representing Central Africa for Telecommunication, Media and Technology (TMT), and leads TMT for
Zimbabwe, Zambia and Malawi. Meanwhile, the Winter School was a resounding success after more than 300 delegates, including Energy Minister Fortune Chasi, converged at the Sun City resort for the prestigious calendar event.This year’s edition of the annual conference, which ran from August 29 to September 1, was held under the theme “Disruptive Innovation — Investing for Growth”.ICAZ says the theme captured its vision, which is to “contribute to both the accounting profession and the society”. The institute said this year’s conference was held in South Africa — where about a quarter of its members are resident — as part of its “initiative to actively engage all its members”.The conference was also aimed at engaging business partners and potential investors into Zimbabwe, of whom a good number are South Africans, with South Africa maintaining its status as the country’s largest trading partner.Running parallel to the conference were investor roundtables, where senior government officials, financiers and promoters deliberated on consultative candid conversations around the investment landscape in Zimbabwe.
Topics on discussion at the conference this year included the future of the profession, the state of the energy industry, corruption, as well as the regulatory environ-ment in the country. ◀
ICAZ presidium: From left, immediate past-president Tapiwa Chizana, ICAZ senior vice president Duduzile Shinya, ICAZ president Funagi Kuipa and ICAZ junior vice president.
5October 2019
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ASTRA PAINTS
6 October 2019
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Let's pull in one direction: Chasi
Omega Ukama
This comes as Zimbabwe’s dire electricity situation, which has been headlined by rolling blackouts, is killing business, with
companies facing unprecedented downtime while operating costs have skyrocketed as firms turn to diesel-powered generators to stay operational.
Addressing CAs at the Institute of Chartered Accountants of Zimbabwe’s Winter School in South Africa recently, the minister said the profession has a part to play in the country’s quest for a sustainable solution to the crisis.
“The accounting profession is about integrity, it calls all of us to order I believe that the profession can play a very important role in this situation and we hope to see them play a more proactive role,” said Chasi.
“For example if one wants to establish a company’s going concern, I would ask that they look at several things, including whether the company has mechanisms to manage power consumption.
“I would also ask them to look at the costs of a company to see, for example, if power consumption is very low. There are cases where some entities have tampered with power meters, he said.
He said CAs could also help with ideas on how energy projects can be funded.
“Chartered accountants have specialised skills in finance, not everyone will have the skills that
have got to do with finance and investment. So the profession is our fallback in terms of them having innovative solutions regarding project finance,” Chasi said.
“One also expects that they will advise their clients to go onto the renewable platform because clearly, many are spending money on diesel and generators and it is not sustainable,” he added.
ZESA Holdings (ZESA), the state power utility, says the current situation has been caused by loss of generation capacity at its Kariba power plant due to the drought, and it has not been able to import enough to cover the deficit owing to its indebtedness, as well as the shortages of
foreign currency in the country.
The minister said the situation requires collaborative efforts from the various stakeholders in the economy.
“It is important for Zimbabweans to note that this is not a one man game. Unfortunately, we are still at the point where we are playing the blame game,” he said.
The minister also raised the issue of unpaid bills, saying Zimbabweans need to change their attitude about power.
“Our entire attitude towards power needs transformation, there are people who take
power for granted and you will find that people have generally not exercised due discipline in paying bills,” he said.
ZESA says it is owed about $1,2 billion by its customers.
“I know that some would want to play the political game and blame and so forth, but I think it is fair to say that overall, we are all responsible.
“There is no sector of our consumers that does not owe ZESA.
“I am hoping that this noble profession that calls us to order and audits us, will also be able to come up with a position to try and engender an attitude that says we must pay our bills,” the minister said. ◀
ENERGY minister Fortune Chasi has called on chartered accountants (CAs) to pull together with government in addressing Zimbabwe’s power challenges.
Chartered accountants have specialised skills in finance, not everyone will have the skills that have got to do with finance and investment. So the profession is our fallback in terms of them having innovative solutions regarding project finance,..”
Fortune Chasi, energy minister
www.icaz.org.zw |
Fortune Chasi
MyICAZ Application
The Institute of Chartered Accountants of Zimbabwe (ICAZ) is very excited to announce the release of a brand new
application for members, built and optimised to have better access to the Institute!
• Connect through:
ICAZ Members are encouraged to access this applicarion. Your login
details are the same as for your membership database otherwise
Contact: [email protected]
The MyICAZ app is live in both stores now.
With this resource, the mobile app will provide users with the ability to:• View and edit your profile• Full access to event resources• View, update and send notes on your
event sessions• Browse speaker information• Check out exhibitors (partners/sponsors)
and the exhibit hall floor plan• Connect with other app users with the
in-app messaging system• Set reminders for events and receive alerts
7October 2019
| www.icaz.org.zw
8 October 2019
www.icaz.org.zw |
Omega Ukama
Addressing members at this year’s Winter School in South Africa at the Sun City resort in September, ICAZ
chief executive Gloria Zvaravanhu said the institute had set up a committee for this purpose during the course of the year.
“We know that membership services are an area of interest to members because they want to derive value from their membership with the institute, and so we are focused on improved service delivery to members,” Zvaravanhu said at the institute’s 101st Annual General Meeting.
“In this regard, council has formed a membership services committee, which is made up of representatives from all the chapters.
“The committee is currently carrying out a benchmarking exercise looking at what other similar institutes offer their members so that we can compare and seek to improve,” she said.
The chief executive also advised that the establishment of the ‘Center of Excellence’, will also expand on service offering to students and members. The Centre of Excellence is one of the three legacy projects that came out of the centenary celebrations.
“The Center of Excellence, which is basically a new office building for the institute, will see membership services expanded as it will have a student’s centre, conference centre, members’ meetings rooms, sporting facilities and other lifestyle amenities.” She said
The Institute is currently engaging Harare City council to get an ideal piece of land for the
centre of Excellence.
“We have Integrity House that was handed over to us by those that came before us and we also need to leave something for the next generations,” Zvaravanhu said.
She also called members’ attention to the CAs’ directory, which she said was another project that the institute is currently pursuing to improve membership services.
“The directory is a call that is currently on the table for members to profile themselves. This was brought on the table because we get a lot of calls from various stakeholders who will be looking for board members, consultants and so on but we have never had a directory for them to make reference to,” she said
“This is a good opportunity for members to put themselves out there,” she added.
Members also received an update on the other two centenary projects, which Zvaravanhu said the institute is pursuing with reverence to make sure that it “leaves a legacy for the next 100 years”.
“We have the centenary book, which is profiling the institute’s 100 years of existence, talking to where the institute started, what has been achieved and where it is going. We have a team of researchers working on it and
we hope that it will be done by the end of the year. So lookout for the book, it will be a keeper and something that all members should have,” she said.
The institute’s third centenary project is the development of the accountancy profession through enabling the next generation to become CAs.
“Our profession is perceived to be ‘elitist’ because the process of becoming a CA and the exams are expensive and beyond the reach of many students. We felt that it is the responsibility of the institute to contribute to the development of the profession by ensuring that we assist those that are capable of becoming CAs but might not have the financial means to do so,” she said.
Three years ago, the institute launched Vimbiso Scholarships Trust Fund, which helps financially disadvantaged students.
“We currently have 15 such students in state universities under the scholarship fund, but we feel that we can do much better. In this regard, we have decided to channel two percent of ICAZ collected member subscriptions to the Vimbiso Fund, and this should see an increase in the students supported by the scholarship fund” Zvaravanhu noted. ◀
THE Institute of Chartered Accountants of Zimbabwe (ICAZ) says it is working on enhancing the services that it provides to its members.
ICAZ refines services
We know that membership services are an area of interest to members because they want to derive value from their membership with the institute,..”
Gloria Zvaravanhu, ICAZ chief executive
9October 2019
| www.icaz.org.zw
You can do what I cannot do. I can do what you cannot do. Together we can do great things!Mother Teresa
#ImpactThatMatterswww.deloitte.com© 2019. Deloitte & Touche. All rights reserved
Fungai KuipaPresident
Duduzile ShinyaSenior Vice President
Tumai MafungaJunior Vice President
Congratulations to the 2019 ICAZ presidium.The Partnership and Staff of Deloitte wish you a term filled with success.
10 October 2019
www.icaz.org.zw |
THE Institute of Chartered Accountants of Zimbabwe (ICAZ) says it is aiming for greater participation of women in the prestigious profession.
Shame Makoshori/Omega Ukama
This comes as the proportion of the female members of the institution has grown marginally from about 17 percent
in 2018 to only 18 percent this year.
Speaking at ICAZ’s 101st Annual General Meeting in September, Gloria Zvaravanhu, the institute’s chief executive, said there is a lot of room for improvement on the numbers of female chartered accountants.
“Eighteen percent female is an improvement from what we had in the past, but we aim for this demographic to depict that of the country, which is at about 51 percent female,” she said.
And, in this regard, the institute recently set up the Women Chartered Accountants Network (WeCAN), which is meant to encourage and im-prove participation of female members in ICAZ activities “to promote diversity of views”.
The institute says the movement “provides a platform for female members to network
ICAZ courts female participation
and share ideas in-order to promote their influence in the economy” and in turn work towards ICAZ’s objective of exerting influ-ence in all spheres of the economy.
Meanwhile, in August ICAZ admitted 77 new members, bringing to 2 223 the total number of professional accountants under the prestigious body.
In a speech delivered during a ceremony to welcome the new members in Harare, ICAZ president Fungai Kuipa, who was then the senior vice president, said the new accountants must uphold the values of the institution, which emphasises the need for honesty and integrity.
“To be a CA (Z) (charted accountant Zimbabwe) comes with a lot of weight and magnanimous reverence,” Kuipa said.
“It also comes with a lot of responsibili-ties and this means that members of the institute are expected to tread the moral
high ground and be exemplary citizens in their professional and social conduct. Uphold good corporate governance, ethics and professional values for you are ambassadors of profes-sionalism. Indeed, we are on the right path of increasing our membership without compro-mising quality,” Kuipa said.
ICAZ is the largest and oldest body of profes-sional accountants in Zimbabwe.
It is one of the major accounting bodies in Africa and is a full member of the Interna-tional Federation of Accountants and the Pan African Federation of Accountants.
Most listed firms in Zimbabwe are headed by CAs.
“ICAZ aims to enhance the international standing and recognition of the qualification Chartered Accountant (Zimbabwe), for the benefit of its members, to support them in providing quality services in the public inter-est. In addition, it seeks to be the pre-eminent professional body in the development and promotion of accountancy, assurance and ad-visory services, business and good governance practices. The institute plays a significant role in nation-building through producing well-trained professionals. The rigorous training which chartered accountants go through makes them strategic tools in the economic turnaround of the country,” he noted.
Kuipa urged the new members to be involved in the affairs of the institute either at the com-mittee level or by attending events such as the annual general meeting and Winter School, golf days and seminars.
ICAZ has reciprocal agreements with the Insti-tute of Chartered Accountants of England and Wales, South African Institute of Chartered Accountants, Institute of Chartered Accoun-tants Ireland, Canadian Institute of Chartered Accountants, Hong Kong Institute of Certified Public Accountants, and very recently the Chartered Accountants Australia and New Zealand.
The arrangement qualifies holders of CA (Z) to practise in these countries or become a member of those other institutes. ◀
WeCAN Session during Winter School: From left Duduzile Shinya (WeCAN Chairperson), Elizabeth Rabvukwa, Maggie Manonga, Sindi Koyana & Cynthia Pongweni
11October 2019
| www.icaz.org.zw
www.fbc.co.zw
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12 October 2019
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ICAZ in pictures
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1. Winter School at Sun City: Rio Zim CEO Bheki Nkomo.2. IPSAS Module Signing: Front from left: Admire Ndurunduru (PAAB
Secretary), Daniel Muchemwa (Accountant General) & Cathrine Maveneka (Deputy Accountant General).
3. Winner of the Winter school golf tournament Roy Shayahama receives the Presidents trophy from Hon. Min. Chasi while the new ICAZ President Fungai Kuipa looks on.
4. ICAZ president Fungai Kuipa, and CIMA Africa region vice president, Tim Simba, sign a collaboration agreement.
5. Winter School at Sun City: Left is Joseph Busha, Group CEO JM BUSHA Investment Group (Pty) Ltd right is Cheryl Sambaza who was MC.
6. Delegates at the Sun City Winter School, South Africa.7. Winter School at Sun City: Business Round Table Session.8. ICAZ Past Presidents at Sun City Winer School: Back from left: Brian
Njikizana, Munyaradzi Dube, Tapiwa Chizana. Seated: David Gwande & Gloria Zvaravanhu.
9. WeCAN members at the Winter School Gala Dinner.10. Winter School at Sun City: Hon. Min Chasi responds to questions
during a panel discussion.11. Handing over the Reins of Power. Tapiwa Chizana hands over the
Presidency to Fungai Kuipa.12. Botswana Chapter Entrepreneurship Boot Camp Delegates.13. IPSAS Certificate Launch: Front from left: Tapiwa Chizana (ICAZ Presi-
dent), Zvinechimwe Churu (Chief Director National Budgets), Cathrine Maveneka (Deputy Accountant General), Admire Ndurunduru (PAAB Secretary), Anesu Daka (CAA Group CEO). Back from left: Bothwell Ny-ajeka (ICAZ Public Sector Committee Chairman), Daniel Muchemwa (Accountant General), Gloria Zvaravanhu (ICAZ CEO).
14. Winter School at Sun City: SAICA CEO Freeman Nomvalo.15. Some of the beneficiaries of the ICAZ Vimbiso Scholarship Trust Fund.
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13October 2019
| www.icaz.org.zw
Services On O�erAccounting and Bookkeeping Services.Internal Audit Services.External Audit Services.Forensic Auditing.Judicial Management.Liquidations.Sequestrations.Corporate Finance & Advisory Services.Financial Management Training.Company Secretarial Services
22 Lomagundi RoadAvondale, HarareTel: (242) 332817/8
Cell: Christopher Maswi +263 773 801 957Email: [email protected]@[email protected]
For More Information Contact Us:
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14 October 2019
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Tarisai Masenda
TARISAI Masenda (TM) recently received a recognition award from the Institute of Chartered Accountants
in Zimbabwe’s (ICAZ) Botswana Chapter for being the first member to start a business in that territory. Masenda founded TkRM Certified Auditors, an audit firm, in 2013. Omega Ukama (OU) sat down with Masenda to discuss his journey as an entrepreneur in the diaspora. Below are excerpts of the interview.
OU. Being the first ICAZ member to open an audit firm in Botswana is a significant achievement, what does it mean to you personally?TM. It’s satisfying and motivating to me personally. I actually didn’t realise it until ICAZ Botswana Chapter recognised it with an entrepreneurship award.OU. You are the first among many other Zimbabwean professionals – not just from ICAZ certification, but also from other accounting bodies - why do you think this is, what drives you?TM. I have always been driven by a desire to help others and to give back. I went through my high school, from form four to six, on a scholarship and that was from Scripture Union students in Germany in association with a German teacher at my high school. From that moment on, I had the desire in
me to start a business, create employment, and help other school kids in need.I am currently in talks to set up the TKRM Scholarship Fund at my former school, but it is not easy, it is a challenge because business can make losses when you least expect it.OU. Take us through your journey with TkRM in Botswana, what have been the highlights?TM. Quitting my monthly paying job was a challenge. Approval from Kudzai, my wife, was not easy, but the support still comes along and she sticks with me through it all. I am truly grateful to her for being there for me through the ups and downs.The first three years of the business were rampant and profitable, business was great. We grew from two employees, my wife and I, to eight employees in three years. From one customer to about 80 customers, we diversified from offering accounting services to offering audit, accounting, tax, company secretarial, mergers, acquisitions and liquidations, as well as all other types of business advisory.In the fourth year we became even more ambitious, increasing our staff complement to 12, relocating offices and getting bigger space. Unfortunately the economy slowed down during year four and year five as we added just over 30 customers, losing over 15 to various reasons from companies closing down, to new competition.Now in our sixth year of operation, we see a slight turn in the economy, hopefully after the October 2019 elections business will boom again.The biggest challenge over the five to six-year journey was recruitment. Getting the
right people for the right job and making sure those people are properly remunerated so that the company does not lose them.OU. What are the near-term and future prospects for TkRM?TM. Near-term prospect is to return to profitability. Our future prospect is to sustain this profitability whilst at the same time expanding and getting much bigger clients than our current portfolio.The future is in business advisory and mergers and acquisitions. That is our strategy and it will be our focus area.OU. Are there any plans to expand the business to Zimbabwe, and within the region?TM. Zimbabwe within the next five years. We are hoping the economic landscape in Zimbabwe allows us to do business fairly and independently. Hopefully the corrupt practices in my beloved country will have tone down soon.As a family, we are building our principal
residence in Harare, so plans to get back home are definitely in the pipeline.OU. What has been your experience as a Zimbabwean entrepreneur in Botswana?TM. It is tough to penetrate. Citizen entrepreneurs are preferred and therefore getting government business, which is the biggest player in the economy, is just not possible. This has limited our market significantly.
Unfortunately or fortunately, in our profession there are only about 33 audit firms in the entire country and approximately 54 certified auditors. And of these, I think only two are from actual citizens, maybe six or so are from citizens who renounced their British or Indian citizenships.OU. If ICAZ invited you to do a lecture to motivate other members to entrepreneurship, what would be your main message?
14 October 2019
From that moment on, I had the desire in me to start a business, create employment, and help other school kids in need...”
Tarisai Masenda, TKRM founder
Q&ATKRM Certified Auditors’ founder calls CAs to entrepreneurship
Interview by Omega Ukama
15October 2019
| www.icaz.org.zw
TM. My message would be that it is not easy but it can be done. Fall down nine times and get up 10 times. Work with a 10 percent success rate for prospective business, this means out of 10 possible clients
or tenders , you will lose nine and win one. Don’t be afraid to take the risk and lose, you will win eventually. Learn from your mistakes and take every failure as a step towards success.
OU. Tell us about your professional life before TkRM, what were the highlights?TM. Before TKRM, it was audit for five years at EY Zimbabwe from 2000 to 2005. Then I was the Head Office Accountant at Zimasco for two years. From there, I went to BDO Botswana in 2008, KPMG Botswana in 2009 and RPC Data Ltd Finance Manager in 2009 where I stayed until 2012 before becoming a freelancer.The biggest highlight and eye-openers ironically came when I was in between jobs. That is when I was jobless and penniless, which was May 2007 until August 2007, then September 2008 until November 2008. Those penniless and jobless moments made me stronger and more determined. I knew I had to create that company and not allow my family to go through several days without food or fail to pay rent with no prospect of knowing where the money will come from. There were times when we survived on hand-outs from relatives and friends.There were piece jobs that I did in 2008 and never got paid, customers simply decided they would not pay you.OU. Migration is very common among Zimbabwean professionals because of the state of the economy, is it the same script for you or there were other factors? Also, do you think that “brain drain” has contributed to the current state of the economy in Zimbabwe?TM. Same script, same story for me with migration.And about brain drain it is a no for me, not at all. It is not “brain drain” that has killed the economy. It’s corruption and greed. The people leading
the country are some of the brightest minds in Zimbabwe, with PHD’s and Masters degrees. The country remains highly literate. I am even taking my kids to Zimbabwean schools. The problem is that there is a lot of individualistic and everyone is just interested in making money for themselves. No-one cares anymore about the health sector, state of the road and transport network, education sector, police, security and defence. It’s a culture issue now of corruption and greed.OU. From your experience, what are the similarities and differences between the professional and business
landscapes in Botswana and Zimbabwe?TM. Botswana is less corrupt but maybe slow in development and competition, the system seems to be reserving everything for citizens.Zimbabwe is corrupt but the business opportunities are vast. The population is
also much higher in Zimbabwe and the industry is more advanced, in a way.OU. Is there anything that you would like to say to fellow CAs as a parting shot?TM. After becoming a CA, start a business and expand to other sectors from the money you make, for example construction, real estate, money market and so on. Do not work as an accountant only.Understanding the numbers can change the way you do business. However, most of us as CAs are too risk-averse, we are comfortable with a salary or a high paying FM or FD job, we therefore fail to start businesses. We are highly marketable, so it is easy to jump from one job to another and very few think of starting their own business. ◀
TKRM founder calls CAs to entrepreneurship...continued 15
After becoming a CA, start a business and expand to other sectors from the money you make, for example construction, real estate, money market and so on...”
16 October 2019
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Contact Information
African Continental Free Trade Agreement
a combined GDP of USD3,2 trillion covering 55 countries.
There are huge opportunities being offered by the AfCTA agreement which has now been ratified by 27 countries, with Nigeria having been one of the countries that signed the agreement during the recently concluded African Union Summit in Niger. With Africa’s largest economies,
The operational phase of the African Continental Free Trade Agreement (AfCFTA) was launched on 7 July 2019.
The AfCFTA will be one of the largest free trade areas since the formation of the World Trade Organisation (WTO), given Africa’s current population of 1,2 billion people. This population is expected to grow to 2,5 billion by 2050 with
namely South Africa, Nigeria, Egypt and Kenya having signed up to the agreement, there is optimism that the agreement will finally be a catalyst for achieving Africa Union Agenda 2063.
However, for the AfCFTA to benefit the common person in Africa, there are a number of key areas that need urgent attention by African governments.
1. Barriers to travel across nations
Countries need to ensure that barriers to travelling across nations through lengthy and rigorous VISA regulations are reviewed in order to facilitate travel across Africa. In addition, flight connections across west Africa to southern, north and east Africa need massive investments as currently it is still quite expensive travelling across Africa which can cost one above USD700 when comparably it will cost less than USD400 to travel within Europe.
Other countries have challenging passport and identity issuance procedures for citizens and this needs to be addressed urgently in order to facilitate travel for citizens. Recently, in Zimbabwe, the passport agency has been struggling to address the huge backlog of passport requests by travellers and such gridlocks dampen the aspirations of the AfCFTA.
Border turnaround times and efficiencies is another area that needs significant attention as most borders still have significant delays for travellers. However, there are opportunities being explored by some countries with a “one-border” concept becoming a huge benefit for travellers and exporters. For example, the one-border stop between Zimbabwe and Zambia provides significant reduction in turnaround time for travellers and business people.
Further to that, being able to travel means little if there is no trust or acceptance between countries. This refers to trust and acceptance of people and of goods as well. South Africa is a case in point where xenophobia has loomed large since 2008 to the extent that nationals from Mozambique, Nigeria, Somalia, Malawi and Zimbabwe face assault and even murder just for being in South Africa. The psychological effect further hampers the acceptance of products that may be coming from these places.
Balancing ease of travel and security considerations will remain a key issue for most countries though, given conflict, tensions and security challenges in parts of Africa. Heightened vigilance and cross border security intelligence information sharing will remain
AfCFTA is a key enabler to ensure benefits for the common person in achieving shared prosperity and inclusive growth, writes Dony Mazingaizo and Garikai Nhongo
17October 2019
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There is empirical evidence across countries that the private sector is much more efficient in deployment of capital than the public sector and that is why it is critical for governments to ensure the private sector is at the centre of growth. Where possible, Public-Private sector Partnerships (PPPs) should be pursued with a close eye on deal structuring so that governments do not mortgage future generations in perpetuity.
Most African countries continue to have significant unemployment which makes it elusive to take advantage of the so called “demographic dividend”.
Without growth in terms of production and manufacturing, some countries will find it impossible to benefit from the AfCFTA. For there to be a meaningful balance of trade, each market needs to be able to bring something to the table that can be traded in other markets at competitive prices. Currently manufacturing accounts for less than 15% of Africa’s GDP. An open market with the right local incentives would increase that percentage significantly and also promote job creation.
3. Close attention to transfer pricing and Base Erosion and Profit Shifting (BEPS)
Countries should put in place adequate taxation laws and policies to ensure that Multinational Companies (MNCs) pay their fair share of national tax. Without such adequate taxation systems, countries can easily find the benefits of the AfCFTA agreement elusive. Revenue losses from BEPS are conservatively estimated
a key cornerstone to ensuring that countries deliver seamless facilitation of movement of people, goods and services going forward.
2. Favourable policies to stimulate home and inbound private sector led growth and create employment
Governments should continue to put in place favourable policies to stimulate home and inbound private sector led growth so that there is employment creation for young people coming out of universities.
at between USD100 billion and USD240 billion annually. This is equivalent to between 4% and 10% of global revenues from corporate income tax. Given developing countries’ greater reliance on such revenues, estimates of the impact on these countries, as a percentage of GDP, is even higher1.
Most tax regulators across Africa are investing in skills and laws to address transfer pricing so that there is adequate attention to potential tax manipulation by MNCs.
4. Addressing illicit financial flows and hot money.
In the guise of taking advantage of free movement of goods and people, Africa can easily open itself up to significant illicit financial flows, money laundering and hot money which can have significant implications on the stability of the financial sector and development aspirations of developing economies. Having strict anti-money laundering laws and relevant exchange
1 https://prod-edxapp.edx-cdn.org/assets/courseware/v1/304940b5561b1343d511320d661505b3/asset-v1:W-BGx+EMDE01x+1T2019+type@asset+block/Taxing_Multinational_Enterprises.pdf
African Union. 7th African Union Ministers of Trade Meeting, Template for Goods and Services. December 12-13, 2018.
Signé, Landry. “Africa’s big new free trade agreement, explained.” Washington Post. March 29, 2018 https://www.washingtonpost.com/news/monkey-cage/wp/2018/03/29/the-countdown-to-the-africancontinental-free-trade-area-starts-now/?utm_term=.f864fc984f22
Having strict anti-money laundering laws and relevant exchange control regulations will remain important to ensure that African economies are not exposed to cartels...”
Tel +263 242 707 817, 0777 373 214 Sydney Bvurere - Email: [email protected]
...continued to Page 20
African Continental Free Trade Agreement...continued
18 October 2019
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Macdonald Chitauro
ZIMBABWE’S oldest and largest professional accountancy organisation, the Institute of Chartered Accountants of Zimbabwe (ICAZ)
believes the adoption of the International Public Sector Accounting Standards (IPSAS) will be a “game changer”.
The country has adopted the IPSAS implementation plan and targets to fully implement it by 2025 to enhance financial accountability in central government, urban and rural authorities.
The development comes at a time when Zimbabwe has been admitted under the International Monetary Fund’s monitored programme. This means the steps taken by government to have a reporting framework that capturers all transactions and ensure full disclosure in financial reports audited by Auditor General, is a welcome development.
Central government has been using cash accounting, a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. The implication has been that key transactions entered into but not settled in cash are excluded from the financial reports, for example receivables and liabilities. These balances not being reported on are very important for decision making and for users to ascertain the financial position or health, in particular funders.
IPSAS a game changer: ICAZ
A typical case in point is the Mozambique government, where international funders halted financial assistance to that country after they discovered that it had not disclosed debts of over US$1 billion.
Now, government wants to migrate towards adoption of an accrual-based reporting system, IPSAS, to ensure great transparency and accountability in how government records and reports the wealth of financial data it receives and processes at any given time.
Government has since roped in ICAZ to help in the revamping of the public sector’s financial management system and professionalisation of the public sector, to enhance performance and overall service delivery. ICAZ, together with the Chartered Accountants Academy, introduced an IPSAS certificate course. ICAZ will also be offering training and workshops to ensure proficiency in IPSAS by public sector practitioners to aid in meeting the target of full IPSAS adoption by 2025.
The move will also ensure that government accounting personnel are qualified and experienced to deliver what is expected of them. Zimbabwe’s central government, urban and rural authorities
spend large sums of public funds on a range of services, meaning a stronger accounting system in the public sector will help government meet tax payers’ demands for transparency and accountability. Fixing Zimbabwe’s public sector is key because a strong accountancy backbone is crucial to the health of Zimbabwe’s economy.
The new accounting system is expected to contribute to better use of public funds. Enhanced transparency is part of the core focus of the accounting profession. This can support in solving endemic issues of corruption and financial mismanagement and drive economic development.
Some parastatals and other state institutions had moved away from cash basis of accounting to the accruals basis under IFRS. Whilst this was noble, the IFRS based reporting framework is better suited for entities with a profit motive as opposed to those entities operating on a specific mandate as is the case in the public sector where service provision is the key mandate for most.
In-order to come up with a consolidated public sector position, there was need for a uniform framework of
accounting so that a consolidated financial position for the whole public sector can be achieved. IPSAS adoption will assist in this regard. ◀
Macdonald Chitauro is the technical manager ICAZ
Government has since roped in ICAZ to help in the revamping of the public sector’s financial management system and professionalisation of the public sector,..”
IPSAS Certificate Launch: Cathrine Maveneka (Deputy Accountant General) & Gloria Zvaravanhu (ICAZ CEO) show off the new module.
19October 2019
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ICAZ
20 October 2019
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African Continental Free Trade Agreement...continued
ICAZ, CIMA agree on collaboration
Shame Makoshori
CA(Z) stands for Chartered Accountant (Zimbabwe) while ACMA means associ-ate member of CIMA.
Described by ICAZ chief executive officer Gloria Zvaravanhu as a major milestone in enhancing quality, the deal was motivated by the desire to ensure that professionals of both bodies have an opportunity to augment skill sets with recogni-tion of prior learning.
ICAZ president Fungai Kuipa, who was then the senior vice president, and CIMA Africa region vice president, Tim Simba, signed the agreement.
“We hope that the agreement will benefit both ICAZ and CIMA members,” Zvaravanhu said.
“ICAZ and CIMA have different strengths and if one is a member of both institutes, they become very relevant to the marketplace. Members will have continuous professional development opportunities from both bodies. This will ensure that the accounting profession in Zimbabwe will keep up with the rapidly changing world of business and give the mar-ket-relevant skills and expertise drawn from the two professional bodies. The agreement gives an opportunity to existing members of the two professional bodies to augment their skills for the dynamic business environment that calls for continuous learning whilst affording them the opportunity to recognise prior learning and experience,” she noted.
The agreement is not new in the region as CIMA has in place a similar pact with the South African Institute of Chartered Accountants, whose examination processes are closely linked to those of ICAZ.
Simba said this was a key agreement for the African continent.
“This agreement will play a key role in enhanc-ing financial professional skills and competence not only in Zimbabwe but across Africa,” he said.
“We are welcoming the Zimbabwe family to our global membership of over 660 000. CIMA is celebrating its 100 years this year,” he added. ◀
THE Institute of Chartered Accountants of Zimbabwe (ICAZ) in June entered into an agreement with the Chartered Institute of Management (ACMA), allowing members of both organisations to assume the titles CA(Z) and ACMA after taking certain minimum examinations.
control regulations will remain important to ensure that African economies are not exposed to cartels of illicit financial flows and money laundering.
5. Addressing the infrastructure deficit par-ticularly of port, rail and roads
Urgently addressing the infrastructure deficit in areas such as port, rail and roads will be a key enabler that will unlock value of the AfCFTA. May African countries inherited colonial infrastructure with limited capital investments in the recent past to unlock value for free and efficient movement of goods and people and reduce the cost of doing business across Africa. Once efficiencies are realised in this area, prices of goods and services will become more accessible for the more than 1,2 billion potential market for businesses and public sector.
6. Harmonising Africa’s heterogenous econo-mies
The AfCFTA sees the largest GDP disparities than any other free trade agreement in the world. Egypt, Nigeria and South Africa contribute 50% of Africa’s GDP whereas the smallest six nations contribute only 1% of that GDP. If these disparities are not addressed and if policies are not put in place to encourage commensurate growth opportunities, the AfCFTA may only benefit the largest nations in the bloc.
7. Improving digital connectivity across Afri-ca
Digital connectivity has remained a key area
for investment across Africa as most business and people engagement needs ICTs to be able to conclude transactions and pay for goods and services. Initiatives such as Smart Africa focusing on achieving a single digital market in Africa will need to accelerate conversations and investments in improving digital connectivity across Africa. The cost of internet and telecommunications services remains very high in Africa, particularly cross border communications, making it prohibitive for deepening cross border engagement.
In order to achieve this, the high investment costs need to be shared across multiple governments and the private sector in order to quicken the pace of installation. With shared digital connectivity, innovation becomes swifter, communication becomes more efficient and profits begin to grow. This would impact business and also people’s day to day lives.
8. Addressing labour laws and employment condition disparities
The common person in an African context is likely to be a sole trader, a farmer or an employee. Businesses try to reduce the cost of labour as best as they can and different markets are currently protected by unions and stringent immigration laws. It is important that as people begin to move more freely across borders, governments ensure that they protect the rights of workers and also ensure the protection of their jobs. Without protecting the rights of workers and their employment, the direct benefits of any incentives would be lost to the workers, their families and any other dependents who rely on them for their
existence.
9. Addressing the cancer of corruption
Corruption remains another key area that increases the cost of doing business in Africa and needs urgent attention to ensure that the average person benefits from the AfCFTA deal. Punitive anti-corruption regulations and laws at country level and regional level will remain key in ensuring that corruption is addressed. Political will by leaders of public institutions and government in decisively addressing corruption will be remain key for Africa to attract the much needed investors and international capital.
Conclusion
The AfCFTA is a very positive framework for Africa which has been concluded recently and it should bring optimism for the people of Africa and investors. However, for the benefits to trickle down to the average person, a number of key considerations mentioned above will need to be taken into consideration for shared prosperity particularly for the young people to smile that the time for Africa has come. An overall key enabler will be political will to ensure that there is accelerated progress during the implementation phase of the AfCFTA agreement. ◀
Dony Mazingaizo, FCCA, CA(Z) is a member of ACCA Global Forum of Accountants in Business and member of Institute of Chartered Accountants of Zimbabwe (ICAZ) Public Sector Taskforce
Garikai Nhongo, MCIM, MBA is Project Manager- Smart Africa based in Rwanda
...continued from Page 17
21October 2019
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24 October 2019
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ICAZ CEO joins PAFA boardTHE Institute of Chartered Accountants of Zimbabwe’s (ICAZ) chief executive officer Gloria Zvaravanhu was in June elected to the Pan African Federation of Accountants (PAFA) board.
Shame Makoshori
She is the only and first Zimbabwean to serve on the PAFA board, which is led by Cameroonian Leonard Ambassa.
Established in 2011, PAFA represents Africa’s professional accountants.
PAFA is a non-profit organisation with a membership of 53 professional accountancy organisations across 43 countries.
Its mission is to accelerate and strengthen the voice and capacity of the accountancy profession to work in the public interest, facil-itate trade, and enhance benefits and quality services to Africa’s citizens.
PAFA takes a multi-pronged approach to engaging with stakeholders at continental, regional and national levels, and aims to develop the accountancy profession and work collaboratively to drive Africa’s agenda.
Its mandate is founded on the premise that national professional accounting organisations have the capacity to drive good financial man-agement practices, accountability, transpar-ency and good governance across public and private entities.
The board believes that its ability to develop institutional capability will enable the accelera-tion of economic growth and the reduction of poverty in Africa. ◀
I believe I have a contribution to make to the esteemed Institute and the accounting profession as a whole. I am passionate about it and believe I will make the desired impact,..”
24 October 2019
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