OUR BUSINESS

Materiality determination process and material matters

SAICA’s material matters are those that have the most significant impact on strategic delivery and the Institute’s ability to create value over the short, medium and long term.*

*See About this report for SAICA's approach to value creation

The material matters are identified, prioritised, evaluated and reported as follows:
Step 1: identify

We review SAICA’s external and internal operating environment, key risks and opportunities, issues identified as critical to stakeholders (especially members) and matters discussed by the Board and Board sub-committees

Step 2: prioritise

We rank the matters identified according to their impact on SAICA’s reputation and strategic delivery, the extent of control we have over the issue, and its effect on risk metrics in relation to the strategy

Step 3: respond

SAICA assesses the impact on our risk tolerance/appetite, actions required to manage the material matters and identified opportunities, as well as the impact on strategy

Step 4: report

The outcomes of these reviews and evaluations are presented to the Board and Audit and Risk Committee and reported to members and other stakeholders

LEGEND FOR MATERIAL MATTERS

Worsening
improving
stable
New
Worsening
improving
stable
New
1. State of the economy and the overall socio-economic impact

The challenging socio-economic context in South Africa has been exacerbated by high unemployment levels, disrupted energy supplies, water shortages, deteriorating infrastructure, the poor state of education, rising corruption, a lack of accountability, governance and productivity, service delivery protests, an increase in immigration, outcomes of the Zondo Commission and implications on the profession

The Institute’s sustainability and ability to create value for its members and other stakeholders depend on our ability to remain relevant and responsive no matter the prevailing context

Worsening socio-economic environment in South Africa

Risks, opportunities and strategic response
Risks
  • Impact on revenue from negatively affected members
  • Budget cuts/constraints leading to the inability to engage with members and host flagship events
  • Ongoing loadshedding leading to a rise in the cost and complexity of doing business
  • Lack of progress in prosecuting cases based on availability of essential evidence and unexpected growth in complaints exceeding resource availability
  • The future pipeline of the accountancy profession is detrimentally impacted by low student pass rates, deteriorating standards observed at distance academic providers, and historically disadvantaged institutions
Related opportunities
  • Strengthening relationship with government through support on key government priorities
  • Contribute positively to the broader fight against corruption
  • Advocating for policies that promote economic growth
IMPACT
Capitals
Strategic Pillars
STRATEGIC RESPONSE
  • SAICA hosted an anti-corruption summit involving key stakeholders to participate in devising solutions to address issues raised by the Zondo Commission
  • Promoted the importance of the chartered accountancy profession and all of SAICA’s designations while promoting the importance of mathematics and investing in education
  • Board allocation of additional resources to growing number of cases and continuous improvement of disciplinary processes
Outlook for the short, medium and long term

The Economic Blueprint has significantly influenced the new strategic pillar, Economic and Social Relevance, in the SAICA 2024−2028 strategy, serving as a guiding framework for difference-making in the profession and equipping our members, including associates, to make informed economic and business decisions

Key strategic themes and focus include:
  • Public sector engagement (government, ethics, transparency, and accountability)
  • Optimised disciplinary processes
  • ESG, sustainability, green balance sheet
  • Rebuilding the SA economy
  • The fight against corruption
  • Partnerships with government bodies, regulatory bodies, and municipalities
  • Reputation, public perception and trust
  • Advice for financial survival in South Africa
  • Creating social impact through SAICA initiatives (contributing to the National Development Plan and SDGs)
  • Focused social impact plan
  • Advocacy and thought leadership
SUSTAINABILITY APPROACH

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