6 minute read
FINANCIAL SERVICES
BY THE NUMBERS
Although there are there are many more black accountants in South Africa today than ever before, the industry still has a way to go when it comes to transformation, writes DELIA DU TOIT
CHANGING FACE
Freeman Nomvalo
The fi rst black chartered accountant in South Africa, Wiseman Lumkile Nkuhlu, qualifi ed in 1976 and became president of the South African Institute of Chartered Accountants (Saica) in 1998. Today, the picture in the fi nancial services sector, and the myriad challenges he faced, looks very different. Estimations indicate that black Africans occupy 42 per cent of jobs in the sector, according to the Sector Education and Training Authority (SETA) for the Finance, Accounting, Management Consulting and Other Financial Services sector (FASSET).
“The black demographic (black African, coloured and Indian) occupies 63 per cent of jobs in the sector, while the white demographic occupies 35 per cent. Not only has the number of black people employed in the sector vastly increased, but we’ve also seen empowerment in top occupational categories, leadership and management – 2020 numbers show that most employees in the fi nance and accountancy sector are women (56 per cent) and that women occupy 48 per cent of managerial positions,” says Ayanda Mafuleka, CEO.
FAST FACT
A Thomson Reuters Institute investigation in 2020 shows that South Africa is not the only country facing transformation issues in the sector. Black professionals in the tax and accounting fi eld in the United States face slow career advancement. One of the reasons cited was the need for cultural transformation to remove the “too-prevalent bias that African-Americans aren’t as qualifi ed or capable as their white counterparts”. Source: www.thomsonreuters.com/en-us/ posts/tax-and-accounting/black-cpasearl-fagan/
But there is still a long way to go. When it comes to the accountancy profession alone, the numbers differ signifi cantly. Of the 50 996 accountants registered with Saica, only 7 740 are black and only 19 979 are women.
“Transformation of the sector is taking longer than expected because it takes at least six years to train an accountant,” says Mafuleka. “Saica makes provision for trainee membership, and at the end of 2020, 94 per cent of its trainees were black and 67 per cent were female.”
In May this year, Saica commissioned a comprehensive, independent study to understand why the pass rate for African candidates in the industry is decreasing – leaving many stuck in the trainee phase of their career for longer than expected. “We need to understand the root cause of this problem, despite the numerous initiatives in this regard. If necessary, we will review the full value chain of the qualifi cation process. We continue to implement initiatives to support candidates to close the inequality gap and ensure that no prospective chartered accountant (CA)(SA) is left behind,” says Saica chief executive Freeman Nomvalo.
To combat such challenges, FASSET and several other institutions have developed initiatives to fast-track transformation in the sector – the Thuthuka bursary fund for prospective accountants is one of the better known.
Some of FASSET’s initiatives include a learnership programme for chartered accountant trainees, a bursary scheme for “missing middle” students that narrowly surpass NSFAS funding criteria, academic and career support, and funding for CTA qualifi cations. FASSET also pays R20 000 to NSFAS for each year that a trainee remains in their learnership. This relieves trainee accountants of their NSFAS debt while completing their articles.
One of FASSET’s most popular initiatives, according to Mafuleka, is an employer grant scheme that incentivises employers in the sector to implement skills development initiatives. “It allows large and medium levy-paying members to claim back a portion of their contributions. Small- and non-levy-paying members also have access to grants.”
The sector is still grappling with transformational issues, she says, but the tide is slowly turning. “The black demographic together occupies only 48 per cent of managerial positions, 58 per cent of professional and 60 per cent of technical positions in the industry – and African black people occupy the majority of lower-level occupations. But despite the challenges, there has been a seven per cent increase in equity numbers across the fi nance and accounting sector this past year. This presents a positive outlook in terms of transformation and gender equity.”
Preparing employees for a successful and sustainable career requires a combination of formal and informal training and skills development opportunities. This combination will provide them with a solid foundation, build self-sufficiency and provide the ability to adjust to changing business environments. On-the-job training and mentoring are vital aspects of skills development.
Specific to the industries Omnia engages in, access to quality vocational, technical, management and leadership is pivotal. In South Africa alone, through Omnia’s collaboration with an educational institution, 50 junior to senior management employees have access to a rigorous, comprehensive supervisory learnership programme.
BUSINESS AND SOCIETAL FUTURE FITNESS ENGRAINED IN omnia’s SKILLS DEVELOPMENT
Omnia is deeply invested in facilitating quality vocational, technical and management learning to ensure that individuals and businesses are future-fit
Omnia focuses heavily on softer skills such as creative problem-solving, emotional intelligence, decisive judgment and effective project management and negotiation. In addition, the business encourages curiosity and contrasting ideas, which challenge teams and elevate the quality of thinking, products, services, and partnerships.
The business has invested in establishing accredited technical training centres in South Africa, which aim to convert skills (sometimes informal) into recognised competencies. Omnia is also deeply invested in critical apprenticeships, such as boiler-making and welding) and learnerships that help employees achieve qualifications (such as NQF levels in South Africa). Several unemployed individuals continue to benefit from this access, with some going on to secure employment within the business.
SUCCESS STORIES
Nthati Kutoane seized an opportunity to pursue a skill through an apprenticeship with Omnia Fertilizer and has broken barriers in the process. One of few women in the programme, she earned a Red Seal qualification, achieving her dream of becoming an electrician.
Employees can also access bursaries to pursue part-time studies at recognised institutions. Their managers often play a supporting role in this process, as was the case for Jabulani Dlamini, BME Dryden Mechanical Artisan Fitter, whose manager motivated him to be awarded a BME bursary to complete his studies with Regent Business School.
Meaningful learning and development must happen at every touchpoint. For this reason, safety and security; compliance and governance; customer service; and financial, mental and physical wellness training must also be prioritised. Understanding that people have different ways and paces of learning, a blend of in-person and virtual training is offered, with written/video content available for consumption at employees’ convenience. This helps make the learning process less overwhelming and employees more receptive to participation. Vincent Joseph, a junior financial accountant at Omnia’s Protea Chemicals division, successfully leveraged learning opportunities at Omnia. Starting as a forklift driver, he has progressed to his current role and aspires to be a fully-fledged accountant when he completes his BCom degree.
The world is progressing at an unprecedented rate and keeping pace to remain agile and relevant is imperative. Businesses that fail to envisage and invest in skills required for future fitness do so at their peril.
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For more information:
+27 11 709 8888 info@omnia.co.za www.omnia.co.za
