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The CPA Paradox: Oversupply in Africa and Unmet Demand in America


The Certified Public Accountant (CPA) and Chartered Accountant (CA) designations represent globally respected credentials in the accounting profession, signifying expertise in financial management, auditing, and taxation. These certifications are governed by Professional Accounting Organizations (PAOs), which are members of umbrella bodies such as the International Federation of Accountants (IFAC) and the Accountancy Bodies in West Africa (ABWA) under the African Union (AU).

“The U.S. has seen a 30% decline in CPA exam candidates over the past decade, contributing to over 40,000 unfilled accounting roles.”

“In Nigeria, over 50,000 CPAs are certified annually, yet only 20% find roles matching their qualifications.”

This article examines the striking paradox of CPA/CA oversupply in Africa and unmet demand in the United States. It also explores the critical roles played by IFAC, ABWA, and other regional and international bodies like the AU and European Union (EU) in harmonizing accounting education and competency frameworks to promote global standards and equitable opportunities.

The CPA/CA Oversupply in Africa

In recent years, Africa has experienced rapid growth in accounting education and CPA/CA certifications. PAOs across the continent have prioritized professional development to enhance financial governance and accountability. However, this has led to an oversupply of CPAs and CAs in many African countries due to several factors.

First, the limited job market in African economies, often dominated by small informal sectors, cannot absorb the growing number of accounting professionals. Formal businesses requiring certified accountants remain relatively small in number, leaving many CPAs and CAs underemployed.

Second, education has outpaced demand as PAOs, supported by local governments, have expanded accounting programs and certifications without aligning them to market needs. Third, African certifications often lack harmonization with international standards such as U.S. GAAP or UK GAAP, limiting the mobility of professionals to work in regions like North America or Europe. Lastly, a significant number of CPAs and CAs in Africa work in roles that do not require advanced certifications, leading to frustration and limited career growth.

The CPA/CA Shortage in America

Conversely, the United States faces a severe shortage of CPAs to meet growing demands in public accounting, corporate finance, and regulatory compliance. This shortage is driven by several factors.

An aging workforce is creating an unprecedented talent gap, with many American CPAs nearing retirement. Declining interest among young professionals is another challenge, as many students opt for careers in technology or consulting, which are perceived as more lucrative and innovative.

Increased regulatory demands, such as the complexity of modern financial reporting and audits combined with heightened scrutiny from bodies like the PCAOB, have also contributed to the growing demand for skilled professionals. Furthermore, barriers to certification, such as the rigorous CPA exam and high costs, discourage potential candidates, further reducing the talent pool.

The Role of IFAC, ABWA, and Other Umbrella Bodies

IFAC and ABWA are umbrella organizations that bring together PAOs worldwide and within West Africa, respectively. Their mandates extend beyond representation to actively promoting global harmonization of accounting standards and professional competency frameworks.

IFAC plays a significant role in developing and promoting International Education Standards (IES) for professional accountants, ensuring consistency in competency frameworks across member PAOs. Through harmonization initiatives, IFAC facilitates dialogue and agreements among regional PAOs to create globally recognized qualifications, such as those aligning with IFRS or U.S. GAAP. Additionally, IFAC advocates for reciprocity agreements among member bodies, enabling CPAs/CAs from one region to practice in another seamlessly.

ABWA plays a critical role in Africa by aligning accounting practices within West Africa with global standards while addressing local needs. It supports PAOs across the region in meeting international benchmarks and prepares accountants for global opportunities. ABWA also collaborates with IFAC to harmonize accounting education and enhance the mobility of African accountants.

The Role of AU, EU, and International Bodies

The harmonization of accounting education and professional standards requires active participation from global and regional political bodies like the African Union (AU), European Union (EU), and other international organizations.

These bodies play a role in policy advocacy, promoting harmonized accounting education by incorporating international standards into national policies and curricula through collaboration with IFAC and ABWA. Economic integration is another priority, as fostering cross-border mobility of professionals can help address regional disparities in CPA/CA demand and supply.

Standardization support is crucial, with the AU and EU providing funding and technical assistance to align regional qualifications with international standards, ensuring global competitiveness for accountants. Cross-regional agreements facilitated by these bodies streamline the recognition of CPA/CA certifications, enabling smoother transitions for professionals seeking international opportunities. Moreover, global accountability initiatives from organizations like the United Nations and World Bank recognize the critical role of accountants in promoting transparency and governance.

Opportunities for Collaboration

The CPA/CA paradox highlights the need for stronger collaboration between global and regional organizations. Harmonized education standards are essential, with IFAC, ABWA, and PAOs working together to align CPA/CA education globally, ensuring consistent skills and competencies regardless of the region.

Mobility pathways must also be developed. Regional agreements, supported by the AU, EU, and IFAC, can allow CPAs and CAs from Africa to meet U.S. certification requirements through streamlined reciprocity. Advances in technology enable African CPAs and CAs to support American firms remotely, addressing the U.S. talent shortage while creating opportunities for underemployed African professionals. Capacity building is another critical area, with international bodies providing funding and technical support to PAOs in developing economies to meet global benchmarks for certification and education.

Call to Action

To address the CPA/CA paradox, IFAC, ABWA, and their member PAOs, alongside international bodies like the AU and EU, must collaborate to harmonize accounting standards and align education and competency frameworks globally to enhance mobility and employability. They must expand reciprocity agreements to enable professionals from oversupplied regions to meet demand in high-need areas through streamlined certification pathways. Additionally, promoting mobility and inclusivity by advocating for policies that allow CPAs and CAs to work across borders will help address talent disparities while boosting global economic growth. This effort requires political will, technical expertise, and sustained collaboration among stakeholders to create a more equitable and interconnected profession.

Conclusion

The CPA/CA paradox—oversupply in Africa and unmet demand in America—underscores the urgent need for harmonization and collaboration within the global accounting profession. Through the leadership of umbrella organizations like IFAC and ABWA, supported by international bodies like the AU and EU, these disparities can be addressed effectively. By aligning standards, promoting global mobility, and leveraging technology, the profession can achieve balance, creating opportunities for professionals and strengthening financial governance worldwide.

References

  1. IFAC (International Federation of Accountants) – Insights into global standards and mobility pathways: “The Role of Technology in SMPs: A Global Perspective” (2022). Available at: www.ifac.org.
  2. PAFA (Pan-African Federation of Accountants) – Regional collaboration case studies: “Empowering SMPs in Africa through Innovation” (2023). Available at: www.pafa.org.za.
  3. Deloitte Insights – Impact of AI on accounting: “AI for Accounting Firms: The Future of Audit and Assurance” (2023). Available at: www.deloitte.com.
  4. Practice Society – Examples of regional SMP collaboration: “Collaborative Technology Initiatives among SMPs” (2022). Available at: [Practice Society Website].
  5. Burning Glass Technologies – Report on accounting jobs: “The Future of Accounting Jobs in the Age of AI” (2021). Available at: www.burning-glass.com.
  6. World Bank – Studies on developing accounting professions: “Strengthening Accounting and Audit Capacity in Sub-Saharan Africa” (2020). Available at: www.worldbank.org.
  7. Harvard Business Review – Collaborative business models: “Why Collaboration is the Key to Small Business Success” (2021). Available at: www.hbr.org.
  8. Technology Vendors – AI adoption case studies: Examples from Microsoft, Xero, and QuickBooks. Available at their respective websites.

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