WHO WE ARE

ORGANISATIONAL OVERVIEW

Operating Context

Summary

SAICA continues to operate in a dynamic environment shaped by both global and local drivers, including macroeconomic factors in South Africa. While some of these factors are beyond our control, we remain committed to strategically responding to trends and seizing opportunities that support long-term sustainability and value creation

Socio-Economic Challenges

Challenge

The South African economy is facing significant challenges, while the political climate remains unstable and volatile

Context

South Africa is grappling with serious economic challenges amid political instability, marked by high unemployment rates of 32% overall and 45.5% among youth. ¹ Corruption continues to undermine essential services and reforms. While inflation is decreasing and interest rates are being cut to promote growth, the economy remains fragile²
Energy security is a major concern, particularly with Eskom’s ongoing struggles and proposed tariff hikes that could burden households and businesses. deteriorating public infrastructure, water shortages, and poor service delivery impede progress, while internal tensions within the coalition government could undermine governance and economic stability

How This Affects Our Strategy/Response

SAICA engages members on fee non-payment, as fees and donations fund national initiatives
The Public Sector Summit supports professionalisation, reform advocacy, and sector challenges
SAICA is launching the CAQ, aligning with Zondo Commission recommendations
The Difference Makers campaign and Summit equip members for transformation and leadership
SAICA works with government and civil society, advocating for a proactive role in socio-economic development

Outlook

South Africa’s political and economic outlook is uncertain, with recovery dependent on improvements in key sectors such as energy and infrastructure
Eskom’s issues and potential tariff hikes could lead to social unrest, but resolving these could aid recovery and enhance consumer confidence
SAICA will continue to engage with the government to contribute to national development and showcase the vital role of its members in promoting economic growth and governance

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Ongoing Evolving Regulation

Challenge

Issuing of new regulations continues, some intended to reduce regulatory burdens

Context

South Africa’s regulatory environment is shifting, with new amendments aimed at improving the financial system and addressing financial crime. Some regulations simplify processes but others add complexity, potentially affecting investor confidence
SAICA faces challenges as regulatory responsibilities are delegated to professional associations, balancing its dual role as a member body and regulator, which strains resources and impacts its reputation. The country remains on the Financial Action Task Force (FATF) grey list as of 2024, having addressed 16 of 22 action items but still struggles with complex money laundering prosecutions. Collaboration among various stakeholders is crucial for regaining confidence and aiming to exit the grey list by 2025³

How This Affects Our Strategy/Response

SAICA engages actively with regulators to understand new regulations and advocate for its members’ interests while promoting public welfare
Guidance and technical support is also provided to help members navigate the changing regulatory landscape

Outlook

SAICA proactively engages with evolving trends to position members as leaders in a rapidly changing profession
SAICA monitors and shapes regulatory changes driven by emerging technologies and new business models, ensuring members stay ahead
Anticipating global shifts, SAICA equips members to navigate growing social and environmental priorities in corporate reporting
SAICA supports members in adapting to new reporting regulations, maintaining professional excellence in a dynamic compliance landscape

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³ https://connectedworld.clydeco.com/post/102jned/october-2024-update-south-africas-progress-in-reversing-its-fatf-greylisting?utm

Mathematics is a Major Concern

Challenge

The poor state and quality of education, particularly in mathematics, characterised by low pass rates, continues to strain the CA pipeline and limit the flow of talent into the profession

Context

The quality of mathematics education in South Africa is critically low, impacting the talent pipeline for chartered accountants

Basic education – Despite a slight improvement in the national mathematics pass rate from 63.5% in 2023 to 69.1% in 2024,⁴ there is a worrying decrease in mathematics enrollment, with around 12 338 fewer students participating⁵
Tertiary education – Tertiary institutions continue to grapple with significant challenges, notably low pass rates at the third-year and PGDA levels. These obstacles impede the production of qualified accounting professionals. Additionally, Historically Disadvantaged Institutions (HDIs) face major hurdles in staffing and funding, which affect their ability to attract quality students

How This Affects Our Strategy/Response

SAICA is dedicated to improving mathematics education to ensure a sustainable pipeline of future professionals

School-level support – Expanding the Maths Buddy Campaign and Educator Development Programme, sponsoring teacher training and maths competitions, and promoting digital learning tools. Maths educator workshops in partnership with the Maths Foundation focusing on the GET (General Education and Training) phase as opposed to Further Education and Training (FET), which is too late
SAICA’s participation at the National Education Trust Committee (NECT) a committee tasked with a National Maths Development Plan which reports to the Minister of Basic Education. SAICA is in the forefront to help solve the maths crisis in the country
Learner development – Hosting mathematics camps in partnership with provincial education departments to enhance student skills
Tertiary support – Collaborating with universities to improve pass rates through initiatives such as the Thuthuka Bursary Fund and advocating for Postgraduate Diploma in Accounting (PGDA) programme enhancements

Outlook

Short to medium term – Collaborating with stakeholders to enhance teaching and address racial disparities in pass rates
Long term – Advocating for a comprehensive improvement strategy for mathematics education while diversifying training pathways and leveraging technology for better learning opportunities

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Building Resilient Businesses in a Dynamic World

Challenge

In a dynamic world, businesses are increasingly embracing digitalisation, sustaining hybrid models, and prioritising upskilling and mental well-being to build resilience

Context

As the business environment evolves, SAICA is addressing emerging challenges like shifting employee attitudes, digital risks, and the need for greater agility. Building resilient businesses requires a dynamic approach to talent management, governance, innovation, and the integration of technologies such as artificial intelligence (AI)

How This Affects Our Strategy/Response

SAICA’s strategy focuses on employee engagement, innovation, operational excellence, and leveraging AI for resilience in a dynamic environment:

Employee engagement – Implementing quarterly performance reviews, regular manager-employee meetings, and annual surveys to enhance productivity
Talent development – Expanding training programmes and integrating the MIPART Values and Ethics Programme to uphold integrity
Wellness and ethical leadership – Prioritising employee wellness and reinforcing ethical leadership to maintain SAICA’s reputation
Emerging risks and cyber resilience – Strengthening cybersecurity measures and reviewing conflict of interest policies
AI integration – Piloting AI tools and developing an AI strategy to mitigate risks and improve member support

Outlook

SAICA aims to enhance employee engagement and support through change management and talent initiatives, strengthen wellness and connectivity within the workforce, and develop an AI strategy to manage risks while boosting professional capabilities
By embracing digital transformation and AI, SAICA seeks to empower its members to thrive in a rapidly changing landscape

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Elevation of ESG / Sustainability

Challenge

A strong focus on ESG is a business imperative for creating a thriving society and driving economic growth for a greener sustainable future

Context

Sustainability has become a key business priority, driving societal well-being and economic growth toward a greener future. With global challenges such as climate change and resource depletion, its role in ensuring long-term resilience is more crucial than ever

The evolving regulatory landscape, particularly with the 2023 ISSB Global Sustainability Disclosure Standards and IFRS S1 and S2, marks a significant shift in sustainability reporting. These standards enhance transparency and trust, requiring businesses to adapt and integrate sustainability into their core strategies

How This Affects Our Strategy/Response

SAICA actively promotes global sustainability frameworks and encourages member participation in shaping these standards
Through collaborations with the International Financial Reporting Standards (IFRS), regulators, and sustainability organisations, SAICA empowers members to influence reporting frameworks and advance the UN SDGs
Aligned with its strategic objectives, SAICA has developed an internal sustainability plan and assessed its readiness for ISSB reporting standards. This positions SAICA as a leader in sustainability, driving transformation within the organisation while supporting members in adapting to evolving standards

Outlook

The importance of ESG-related risks is expected to grow, affecting businesses’ long-term performance and access to capital
SAICA is committed to ensuring its members are equipped with the necessary tools and knowledge to succeed in an increasingly sustainability-focused business environment

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