SA faces historic shortage of new Chartered Accountants in 2022

South Africa is on the brink of a historic shortage of new Chartered Accountants (CAs) in 2022, as the allure of higher salaries, political stability, and social security is luring many professionals overseas. The country's CAs are highly esteemed globally, despite recent corporate scandals involving auditors in companies like Steinhof, Tongaat, and EOH. This global wave of hiring CAs from South Africa is being driven by stringent audit requirements worldwide, creating a scarcity of skilled auditors. James Hobson, Director at Blue Recruiting, sheds light on this phenomenon. He explains that the CA qualification offered by SAICA (South African Institute of Chartered Accountants) remains a coveted certification due to its rigorous standards and global recognition. The demand for CAs is intensifying globally, with audit firms seeking talented professionals. This demand is being met by South Africans seeking international exposure and the opportunity to earn foreign currency. The discrepancy in pay scales between working for local companies and offshore firms is a significant factor pushing CAs to seek opportunities abroad. Local companies are struggling to match the attractive salary packages offered by international employers. Some foreign organizations are even hiring South African CAs to work remotely from South Africa while servicing clients in the U.S., allowing them to pay premium salaries in USD while saving on local expenses. This currency advantage puts local businesses at a disadvantage when attempting to compete for talent. To address the challenge of retaining talent and attracting newly qualified CAs, South African companies may need to increase their salary offerings. In recent years, the rates for newly qualified CAs in South Africa have stagnated, making it difficult to compete with higher-paying international firms. Companies are also advised to start their recruitment processes earlier to secure the best candidates before they are snapped up by foreign employers. By moving up their recruitment timelines, local businesses can better position themselves to attract and retain top talent in the competitive market. The shortage of CAs in countries like the UK, the Netherlands, and the Middle East is also attributed to various factors. Stringent audit requirements, shifting career preferences among CAs, and the enduring reputation of the SAICA qualification contribute to the scarcity of professionals in the field. Despite challenges and controversies, the demand for South African CAs remains strong globally, underscoring the need for local companies to adapt their recruitment strategies to remain competitive.