TAY Authorized Accountants & Auditors
April 11, 2024
April 11, 2024
Tarek Zouari is a seasoned chartered accountant with over 20 years of international experience in Finance and Audit, serving as the Regional Chair for Kreston’s Africa Steering Committee & Advisory Group. He is also the past President of Exco Africa, the first African network of independent accounting and auditing firms.
January 16, 2024
Recently, our Kreston Global expert in Tunisia Tarek Zouari, Managing Partner Exco Tunisie wrote a piece on the trend of investing in Africa for Trade Finance Global magazine. You can read the full article here or the summary below.
The United Nations Conference on Trade and Development’s World Investment Report 2023 highlights that foreign direct investment (FDI) flows to Africa reached $45 billion in 2022.
A significant trend is the insistence by African governments on local transformation of extracted resources, ensuring local value addition and potentially boosting FDI.
It’s crucial to understand the economic, legal, and cultural diversity across African regions for successful investment and engagement.
Essential Steps Before Expanding into Africa
Regulatory and Financial Aspects
If you are interested in doing business in Africa, please get in touch.
November 28, 2023
Congratulations to Kreston Pedabo in Nigeria, that recently celebrated its 25 anniversary with an Anniversary Symposium. The event was celebrated with clients and attended by Kreston Global Chief Executive, Liza Robbins, virtually. Kreston Pedabo marked its 25th anniversary in November 2023 with a strategic rebranding to expand its international services. Comprising 10 partners and 150 staff across three Nigerian locations, Kreston Pedabo specialises in audit, tax compliance, financial advisory, and more.
Kayode Oni is an accomplished finance analyst with a proven track record of accounting and consulting. Experienced in finance, accounting, financial analysis, investment appraisal, tax laws and regulations, consulting, project management, and data analytics, Kayode is a valuable asset in the financial sector at Kreston Pedabo.
With over 12 years of experience spanning diverse sectors such as financial services, real estate & hospitality, consumer markets, and oil & gas, Tyna Adediran is a resourceful and self-motivated Business Analyst and Management Consultant. Specialising in areas like Strategy Design & Execution, Project Management, and SME Transformation, she is known for her strong skills in data collection, diagnostics, and critical thinking. Beyond her professional expertise, Tyna is a passionate advocate for continuous learning, sustainable business practices, and youth empowerment, reflecting her commitment to making a positive impact on both the business world and society at large.
November 20, 2023
Sector: Energy
Agenda 2063 is Africa‘s development blueprint for inclusive and sustainable socioeconomic growth and development. African Heads of State and Governments adopted the continental agenda during the golden jubilee celebrations of the Organisation of African Unity (OAU)/African Union (AU) in May 2013. Agenda 2063 seeks to deliver on seven development aspirations, each with its own goals to move Africa closer to achieving “The Africa We Want.”
The blueprint contains key activities to be carried out in five Ten-Year implementation plans, ensuring that Agenda 2063 delivers quantitative and qualitative transformational outcomes for Africa’s people over a 50-year timeframe.
The implementation of Agenda 2063 at continental, regional, and national levels has progressed steadily during the reporting period. This is attributed to remarkable progress and achievements made towards the realisation of several goals and targets of the First Ten-Year Implementation Plan of Agenda 2063.
The data in the second continental progress report on the implementation of Agenda 2063 indicates that Nigeria has achieved a 40% score concerning the goals set for the seven development aspirations. This marks a significant increase of 208%, up from the 13% recorded in the first continental progress report on implementing Agenda 2063.
Key areas where Nigeria has contributed significantly to the implementation of Agenda 2063 include:
No specific, unified legislation applies to all international businesses looking to expand into Africa. The legal landscape in Africa is diverse, and each country has its own set of laws, regulations, and policies governing international business activities.
However, some regional economic communities in Africa/Trade blocs, such as the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), have taken steps to harmonise certain aspects of business laws among member states to facilitate trade and investment.
International businesses aiming to expand into Africa typically need to navigate a range of legal considerations, including investment laws, taxation, employment laws, industry-specific regulations, trade agreements, intellectual property laws, and local content laws, among others.
Businesses must conduct thorough due diligence and seek legal advice tailored to the country or countries in which they plan to operate. Additionally, regulations and business environments can change, so it is advisable to consult legal experts with the most recent and relevant information.
In Nigeria, however, efforts have been made to attract foreign direct investment (FDI) through its investment promotion agency, the Nigerian Investment Promotion Commission (NIPC). The NIPC Act provides the legal framework for investments in Nigeria and incentivises investors in various sectors.
The Federal Government of Nigeria has adopted rigorous efforts to ensure that areas of concern for foreign investors, such as bureaucratic red tapes, incorporation processes, taxation, capital repatriation, and visa policies, are relaxed to the fullest extent possible to open up Nigeria’s economy to fair competition and prosperity.
Consequently, in line with the NIPC Act 22, the Nigerian Investment Promotion Commission regularly consults with crucial Government agencies to negotiate specific incentive packages in identified strategic areas of investment interest. These consultations have led to an increasingly attractive business environment with tax holidays for pioneer companies producing exportable goods, newly established industries in manufacturing, or expansion of production in sectors vital to the economy. The Government also grants non-tax incentives to non-pioneer firms in addition to industry-specific incentives.
Section 24 of the NIPC Act provides that a foreign investor in an enterprise to which the Act applies shall be guaranteed unconditional transferability of funds through an authorised dealer in a freely convertible currency of:
Foreign investors can set up businesses directly in Free Trade Zones (FTZs) without incorporating a company in the customs territory. Registered companies may also apply as a separate entity to operate in an FTZ that would append the company’s name with the FZE (Free Zone Enterprise) suffix to gain the FTZ benefits.
FTZ incentives include:
October 3, 2023
Sector: Finance
Kreston Global has welcomed Nigerian firm, Pedabo, to the Kreston Global network.
Kreston members can learn more about the Kreston Pedabo team here.
Founded in 1998 by Ajibade Fashina and Albert Folorunsho, Pedabo will mark its 25th anniversary in November with a rebrand to Kreston Pedabo, part of a strategy to extend its international services offering to a wide range of private and listed companies. Made up of 10 partners and 150 staff across three locations in Nigeria, the firm specialises in audit, assurance, tax compliance and advisory, financial advisory and risk management, management consulting and other support services.
The addition of Pedabo to Kreston Global’s network further strengthens its African regional presence, which consists of 30 member firms across 29 countries providing a range of financial, audit and accounting, taxation and other advisory services to businesses exploring inbound and outbound growth opportunities.
Liza Robbins, Chief Executive of Kreston Global, said:
“Pedabo has built an exceptional reputation in the Nigerian tax, audit and advisory landscape over the past 25 years. The breadth and depth of their expertise make them a trusted business partner for inbound and outbound clients. We look forward to working with them to build their standing in the international market, forging links across the network and beyond. They will be a great asset to our network and our African firms are extremely excited to be working with them.”
Ajibade Fashina, Managing Partner at Pedabo said
“Pedabo is indeed excited to begin this new phase; as founding partners, Albert and I are elated and proud of the progress that we have made in building the Pedabo we see today having truly established a Legacy of Excellence, but we are even more enthusiastic about the next 25 years and the new leadership that will take the firm to new heights with the Kreston brand. The choice of Kreston was not one that was made lightly, and we intend to establish a truly successful collaboration as we explore the Pedabo future leveraging the strengths and opportunities of the 13th largest accountancy network worldwide. So… Hearty cheers to Pedabo and on to the next 25 years of excellence on a global scale!”
To learn more about doing business in Nigeria, click here.
October 2, 2023
September 28, 2023
September 11, 2023
August 3, 2023
Recently, International Accounting Bulletin invited Kreston Global members to comment on global M&A trends in accounting. Mergers and acquisitions (M&A) have become a critical competitive strategy for companies worldwide. However, the landscape varies significantly across developed and developing markets. Kreston Global members Alexandre Kouame partner at Exco ECA in the Ivory Coast, George Itotia from Kreston KM in Kenya, and Chairman of the Board, Rich Howard from CBIZ MHM, share valuable insights to the discussion. Read the full article here or the summary below.
In developed markets like the US and Canada, M&A activity in 2022 was largely driven by a skills shortage. Companies have had to adapt, embracing remote working environments and supplementing resources through outsourcing and offshoring. Here, M&A provides a platform for immediate resource and capability amalgamation. Another surprising driver for M&A in these markets is succession. As Rich Howard points out, many partners in accounting firms approaching retirement age are seeking mechanisms to monetise their contributions, and M&A provides a sustainable solution.
Technology has played a significant role in M&A activity. To stay competitive, firms are investing heavily in technological development and implementation. Private equity investment, while creating some buzz, is not the dominant investment form in the US, according to Howard. Regulatory scrutiny may accompany the introduction of third-party capital, ensuring that relationships between firms and private equity groups adhere to the rules and regulations of the accounting sector.
Despite the M&A trends in developed markets, businesses in Africa face serious challenges. The lack of liquidity is a crippling factor, and raising funds or attracting investment for crucial M&A operations is difficult. Alexandre Kouame, accountant and statutory auditor at Exco ECA (a Kreston Global member firm), believes the issue lies with the financial sector, particularly European banks operating in African markets. These banks often support European companies established in Africa rather than local businesses.
George Itotia, a partner at Kreston KM, highlights that M&A in Africa isn’t merely about promoting growth, but survival. High taxes and low lending contribute to liquidity problems, resulting in many companies folding. He notes a shift by local lenders to invest in long-term government securities rather than in the private sector, deemed too risky. Thus, foreign direct investment is essential for local M&A to thrive.
However, M&A’s financial, tax, and legal challenges in Africa make partnerships a more viable alternative. Strategic partnering helps local companies collaborate on technology and enhance local personnel’s skills. Although private equity is gaining traction in Africa, Kouame asserts that the margins attracting PE companies are shrinking due to increased competition and tax pressure.
In South America and the Middle East, inflation and other economic challenges have created an uncertain environment for M&A. However, M&A continues to be discussed as a possible path forward.
In conclusion, while M&A offers a significant competitive advantage in developed markets, several obstacles hinder its effectiveness in developing regions. Experts from Kreston Global, including Rich Howard, Alexandre Kouame, and George Itotia, contribute to a more nuanced understanding of this global trend and its various implications. Kreston Global Chief Executive, Liza Robbins, recently wrote a blog on private equity investments in accounting firms. Read her full blog here.
July 7, 2023
Read our July Client Update 2023, with a wealth of insights from our experts across the network.
Read, share, and let us know your thoughts!
Kreston Global Chief Executive, Liza Robbins, discusses the challenges of doing business internationally, as we enter a “low-growth, low-investment and low-cooperation era” in an interview with Raconteur.
VAT expert, Luc Heylens from the Kreston MDS network in Belgium, discusses the VAT in a Digital Age package. This package is a set of measures developed to modernise and make the EU’s Value-Added Tax (VAT) system work better for businesses and more resilient to fraud by embracing and promoting digitalisation.
In an article published by the International Accounting Bulletin, Doron Rozenblum from Kreston IL in Israel and Herbert M. Chain from CBIZ MHM in the US elaborate on the profound changes sweeping across the profession, driven by the adoption of cloud technology and the emergence of digital assets such as cryptocurrencies.
Investments in Africa are rising, particularly within the burgeoning African “green economy”. Tarek Zouari, the Managing Partner and founder of Exco Tunisia highlights this area as a prime opportunity for foreign investors in an interview with Wealth Briefing Magazine.
Doron Rozenblum, Kreston IL, was featured in Accounting Today, sharing insights on why internal audit is the key to cyber risk management.
Dr J.P. Gupta, Chairman of the Kreston SNR Advisors LLP Board in India, has been appointed chair for the upcoming International Climate Summit: 2023.
This summit, taking place on 14 and 15 September 2023 in New Delhi, will explore utilising green hydrogen and alternative fossil fuels.
With a focus on the theme “Sustainability Through Green Growth,” this event aims to gather global leaders and experts to engage in meaningful discussions about combating climate change. The event already has over 58,000 online registrants.
Read the latest guidance in your region from our experts from the Kreston Global ESG Committee.
ExxonMobil, Mauritania
Exxon Mobil, one of the world’s largest oil and gas companies, appointed member firm Exco GHA Mauritanie to carry out accounting, tax and payroll services for three of their subsidiaries in Mauritania.
If you are interested in expanding into Mauritania, read the latest tax guide and investment advice, written by experts from EXCO GHA Mauritanie.
Doing business in The Netherlands
This useful new guide offers practical insights and tips to facilitate a smooth transition into the Netherlands business landscape.
Doing business in Chile
The comprehensive, 62-page guide offers legal and regulatory frameworks, financial activities, industry-specific scenarios and more.
Stuart is an FCA-qualified chartered accountant with more than 10 years of practical accounting and audit experience.
He leads the technical developments for Duncan & Toplis. This covers audit, financial reporting and maintaining quality of work.
He has recently been appointed to Duncan & Toplis’ operations board and become a member of the ICAEW’s influential Ethics Advisory Committee. Stuart also sits on the Kreston Global ESG Committee.
June 28, 2023
Sector: ESG
On 26 June 2023, The International Sustainability Standards Board (ISSB) issued its first two reporting standards, IFRS S1 and IFRS S2.
The issuing of these inaugural standards signifies the “ushering in a new era of sustainability-related disclosures in capital markets worldwide”.
One of the most significant limiting factors to the effectiveness of climate reporting has been the number of different bases on which entities report on. There has been a desperate need for global consistency. It is hoped that the release of these standards will be a turning point for the disclosure of climate-related risks and opportunities specific to individual entities.
These first two standards build on the ISSB’s objectives to;
S1 covers the general requirements for disclosure of sustainability-related financial information.
S1 sets the scene for the specific requirements of S2 and for future sustainability standards covering areas other than climate.
S1 adopts the structure of the Task Force on Climate-Related Financial Disclosures (TCFD). S1 also refers to other standards and frameworks in the absence of a specific ISSB standard.
The standard’s main objective is to “require an entity to disclose information about its sustainability-related risks and opportunities that is useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.”
There is a requirement that an entity discloses information about all such risks and opportunities that could reasonably be expected to affect the entity’s prospects.
S1 prescribes how an entity prepares and reports such disclosures, setting out general requirements for the content and presentation of those disclosures so that the information is useful to the users of that information.
In particular, the standard requires that an entity provides disclosures about:
S2 covers the specific requirements of climate-related disclosures.
The main objective of the standard is to “require an entity to disclose information about its climate-related risks and opportunities that is useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.”
S2 also incorporates the TCFD recommendations and guidance and includes a requirement to provide industry-specific disclosures. Industry-specific metrics are included as illustrative guidance, taken from SASB standards.
S2 specifically applies to:
In particular, the standard requires that an entity provides disclosures about:
Both standards are effective for periods beginning on or after 1 January 2024, early adoption is permitted as long as both standards are applied.
Adoption of the standards is voluntary. However, local jurisdictions may make their adoption mandatory for certain classes of entities.
At this stage there are no specific assurance requirements in place. However, analysis provided by IFAC would indicate that of the entities reviewed that did report some ESG information, over 50% have obtained some level of assurance on that information between 2019 – 2021.
Assurance has been gained from the entity’s auditor (who provides the majority) and other service providers.
Although there are no specific international ESG assurance standards currently set, the majority of assurance work was performed under ISAE 3000 (revised). The vast majority of reviews obtained limited assurance with c10% obtaining reasonable assurance.
The ISSB will be promoting the standards worldwide, working with local jurisdictions and focusing on the standard’s connectivity with financial statements. There is also currently a public consultation on four projects to further understand the standard-setting priorities covering ecosystems, human capital, human rights and integration in reporting. Further standards covering other elements of ESG are likely to follow.
In addition to the ISSB standards, EFRAG has been developing the European Sustainability Reporting Standards (ESRS – 12).
These standards have a mandatory implementation for applicable entities with a progressive phase-in period over several years, with early adoption being encouraged.
The standards have a comprehensive coverage of ESG matters, not just focusing on climate to start with.
The standards have the concept of double materiality and the ESG reports must be made in the management report, at the same time as the financial statements.
The standards also have a mandatory assurance element, starting as limited but moving to reasonable over time.
EFRAG is working with the ISSB to promote interoperability.
The European standards certainly seem to have built on the international ones so far, and are mandatory with a mandatory assurance element.
The introduction of the two SS standards is a pivotal moment in the reporting of ESG matters.
They provide a basis for international comparability and help bring ESG matters to the forefront of investors’ decision-making.
More will follow but this is a vital moment in the battle towards net zero. Read more about global ESG developments on our sustainability hub.
