Training and Retaining Qualified Accountants in Malawi: Key Professional Challenges Ahead

By Cromwell Mpinganjira PhD, FCCA

The rise of private universities in Malawi has led to a rapid expansion of degree programs, which has, in turn, adversely impacted institutions offering professional courses and reshaped the landscape of professional education. Many colleges previously focused on professional training have either closed or shifted their focus to academic degrees. This article explores the implications of this trend for the accounting profession, considering its effects on both current and future accounting practitioners. The discussion also addresses why many accounting students are opting for academic degrees over professional qualifications. Furthermore, the article examines the role of accounting regulatory bodies, underscoring their responsibilities to ensure that institutions mandated to provide accounting training meet the standards required by the accounting profession in Malawi.

To become a qualified accountant, one must first achieve the designation of a chartered accountant. As defined by Wikipedia, a qualified accountant is "a chartered professional who has passed all necessary exams to manage and communicate financial information in a business." This journey is rigorous and challenging, demanding extensive dedication and effort.

Many accounting students—particularly those who have completed a diploma in accounting—are increasingly delaying the path to chartered accountancy. Instead, they opt to pursue a bachelor’s degree with the intention of advancing to chartered accountancy only after obtaining the first degree or even the master's degree. However, in practice, many do not follow through with this plan. After completing their undergraduate or postgraduate studies, which are generally less rigorous than the chartered accountancy program, they often decide against pursuing the additional professional requirements. As a result, they enter the workforce with academic qualifications but lack the essential professional credentials required to become fully qualified accountants.

If this trend continues, the number of qualified accountants in the country will eventually decline. This reduction may lead organizations to employ unqualified individuals in senior accounting roles, thereby raising concerns about the competency of those occupying these positions. The training provided to accounting students is rigorous, aiming to produce professionals who are thoroughly versed in essential accounting principles and practices

I was initially surprised to learn that the Malawi College of Accountancy (MCA) had begun offering academic degree programs. While this shift may be understandable given the increased competition from universities also offering accounting degrees, it raises concerns about the institution’s evolving priorities. Currently, it appears that MCA is placing greater emphasis on academic programs over professional ones. When the Malawi Government established MCA as a statutory body under the 1980 Education Act, its primary mission was to train and produce accounting professionals. For many years, the college served as a critical partner for both the Institute of Accountants in Malawi (ICAM)? and the Association of Chartered Certified Accountants (ACCA) in delivering specialized training and certification.

With many colleges that previously offered professional accounting courses now closing or reducing their offerings, it is crucial for the government, through the Malawi Accountants Board (MAB), to actively support the Malawi College of Accountancy (MCA) in prioritizing the training of skilled accountants. By strengthening the MCA’s commitment to high-quality accounting education, the government can help meet the increasing demand for qualified professionals in the financial sector. This investment would not only uphold the integrity of financial practices across various industries but also enhance the nation’s economic resilience by cultivating a workforce adept in accounting standards and regulatory compliance.

In 2013, the Malawi Accountants Board (MAB) was established under the Public Accountants and Auditors Act. Beyond its role in regulating financial reporting and overseeing accountants and auditors, the Board is tasked with supervising accountancy training institutions, including the Malawi College of Accountancy (MCA). MAB is mandated to ensure that MCA operates in accordance with its foundational objectives. As part of its responsibilities, MAB must advise and remind the MCA of its statutory obligation, outlined by an Act of Parliament, to prioritize professional training for accountants. Although academic programs are essential, emphasis must be placed on the professional training of accountants, because that is what MCA was established for.

It is concerning to observe that the Government, its agencies and the majority of NGOs often prioritize the recruitment of unqualified accountants over fully qualified professionals. Qualified accountants undergo extensive and rigorous training, which not only hones their technical skills but also emphasizes the importance of integrity, ethical standards, and accountability. As a result, their professional conduct is generally more reliable and transparent compared to that of unqualified accountants, whose lack of professional training may lead to greater risks in financial oversight. By investing in qualified professionals, organizations can strengthen their financial management and uphold higher standards of accountability.

In conclusion, the landscape of accounting education and professional qualification in Malawi faces significant challenges that require a strategic response from both regulatory bodies and educational institutions. The proliferation of academic degree programs, especially with the rise of private universities, has shifted many students’ focus away from rigorous professional qualifications toward less demanding academic paths. This shift has not only led to a decline in the number of qualified accountants but also threatens to weaken the overall competence of financial professionals within the workforce.

To mitigate these challenges, it is imperative for the Malawi Accountants Board (MAB), the Institute on Chartered Accountants in Malawi (ICAM) and the Malawi College of Accountancy (MCA) to reaffirm their commitment to high standards in professional accounting training. By prioritizing specialized, professional courses, MCA and other professional accountancy schools can realign their educational goals with the needs of the accounting profession, ensuring a steady supply of competent and ethical accountants who can meet the demands of the financial sector.

Furthermore, government agencies, NGOs, and private-sector employers must recognize the added value that professionally qualified accountants bring in terms of expertise, ethical conduct, and accountability. Prioritizing the recruitment of fully qualified accountants will not only enhance organizational financial integrity but also support Malawi’s economic resilience by fostering a workforce capable of upholding rigorous financial standards.

A collective effort from MAB, ICAM, and employers is essential to address these professional challenges. By supporting structured and quality-focused professional training, Malawi can secure a robust pipeline of skilled accountants who are well-equipped to navigate the complexities of today’s financial landscape and to contribute to the nation’s broader economic goals.