Africa loses $45B due to weak financial accounts system

Weak public finance accounts system was responsible to the loss in Africa of resources worth $45 billion annually, said the head of Peace and Security Finance with the African Union Commission.

Speaking to Anadolu Agency on the sidelines of a three-day forum on Public Finance Management, Selidji Gbaguidi said: “African governments should adopt a common path to implementing International Public Sector Accounting Standards.”

The Public Financial Management Forum, 2019 was held under the theme: Strengthening Public Sector Accounting in Africa.

“Governments across Africa need to put in place mechanisms that will make public finances management more efficient,” Gbaguidi said.

According to him, there have been problems in Africa in terms of accountability of auditors general. “Independence of auditors general and auditing that is free of political influences have been discussed thoroughly,” he added.

Gbaguidi said, the participants also discussed and reached understanding on the need to establish an African Association of Accountants General (AAAG).

The forum, according to the African Union Commission, “[…] seeks to stimulate dialogue and enhance leadership and collaboration between Member States, professionals and accounting bodies, with the view to urgently accelerate progress towards sound public sector accounting.

Earlier in a speech delivered at the Forum, Ethiopian State Minister of Finance Admassu Nebebe said: “An effective public financial management system is important for macro-economic stability, effective use of available resources, and promotes inclusive growth through pro-poor investment.”