Somalia is making significant strides towards strengthening its financial ecosystem and fostering economic development through the establishment of the Somali Institute of Bankers and Accountants (SIBA). This vital initiative aims to regulate the accounting profession in the country, ensuring adherence to international standards and promoting professionalism among practitioners.
In a recent address, a spokesperson for SIBA highlighted the institute’s key objectives, which include streamlining the operations of the accounting profession in Somalia, ensuring compliance with laws and regulations, monitoring and improving professional conduct, and advancing the field through research and knowledge dissemination.
The role of SIBA in regulating the accounting profession is crucial for fostering a robust business environment, sustaining economic growth, and mitigating the increasing financial risks faced by companies and individuals globally. With the ever-growing need for highly skilled professionals capable of managing financial situations in accordance with international rules and regulations, SIBA’s establishment comes at an opportune time.
Recognized accounting professionals play a vital role in the financial ecosystem, contributing to the financial management of companies and organizations by providing advisory services and ensuring compliance with tax laws and revenue regulations. This, in turn, enhances the credibility and reliability of financial information, instilling confidence in businesses and economic entities within the country.
The Office of the Auditor General of the Federal Republic of Somalia recognizes the establishment of SIBA as a significant step towards enhancing accountability and transparency. This aligns with the office’s mandate to ensure the implementation of good governance principles, prevent the misuse of government resources, and ensure that government revenue is fully deposited into the public treasury. Accredited SIBA professionals are expected to play a crucial role in supporting these critical national objectives, as outlined in the Auditor General’s strategic plan for 2023-2027, which emphasizes supporting the development of accounting professionals’ skills.
Somalia’s aspiration is for SIBA to nurture highly skilled professionals who can contribute to improving the integrity of institutions, businesses, and tax compliance in accordance with the Somali Companies Law No. 18/12/2010. The establishment and implementation of SIBA are catalysts for enhancing economic resilience and advancing the accounting profession in the country.
It is noteworthy that over 40 out of the 54 African countries have established recognized professional accounting bodies. Therefore, it is imperative for the Ministry of Finance, Parliament, and the Council of Ministers to strengthen the legal framework and recognition of SIBA, positioning it as a driving force for the development of the African accounting profession under the guidance of the Pan-African Federation of Accountants (PAFA) and the Eastern, Central and Southern African Federation of Accountants (ECSAFA).
Additionally, the establishment of SIBA presents an opportunity for Somalia to tap into the local talent pool and benefit from the expertise of its citizens, rather than relying on foreign accounting and auditing firms, which have cost the country approximately half a million dollars over the past two years.
In conclusion, the speakers at this event, representing the government and parliament, urged the Ministry of Finance to support the efforts to establish and develop SIBA, recognizing it as a significant achievement that the legal framework for the institute has successfully navigated the legislative process and is awaiting the President’s signature. They expressed their gratitude and hope for the law’s enactment, paving the way for the completion of this crucial initiative.
