Addis Ababa,3rd May 2025, A strong and well-regulated accountancy profession is a cornerstone for economic growth, fiscal transparency, and efficient resource management. In Ethiopia, the Accounting and Auditing Board of Ethiopia (AABE) and the newly established Ethiopian Institute of Certified Public Accountants (ETiCPA) are driving critical reforms to strengthen this profession. Their joint efforts are positioning accountancy as a strategic enabler of GDP growth and sustainable development.
As the national regulatory authority, AABE sets accounting and auditing standards, enforces compliance, and ensures the credibility of financial reporting. By mandating the application of International Financial Reporting Standards (IFRS) and overseeing the work of licensed professionals, AABE promotes transparency and accountability across the economy. This improves investor confidence, supports efficient capital allocation, and fosters a more trustworthy business environment—all of which have a positive impact on GDP.
Similarly, ETiCPA serves as the professional body responsible for qualifying, licensing, and developing certified public accountants in Ethiopia. Through rigorous examinations, continuous professional development, and a strong code of ethics, it puts foundation for a high-integrity, high-capacity workforce. A competent accountancy profession improves financial management practices across all sectors, which enhances productivity, reduces risk, and supports economic expansion.
In addition to that, both AABE and ETiCPA contribute to national revenue mobilization. ETiCPA-certified professionals help businesses comply with tax laws, while AABE’s regulatory oversight minimizes malpractice in tax reporting and auditing. Their combined efforts improve tax compliance, reduce revenue leakage, and support a more effective tax system—contributing to the government’s capacity to fund infrastructure, social services, and development programs.
AABE and ETiCPA promote the application of sound financial practices in the public sector. Public sector accountants and auditors—trained and regulated under these institutions—support budgeting, auditing, and public expenditure tracking. This strengthens governance, reduces waste, and improves the efficiency of public investments, contributing directly to the quality of economic output and service delivery.
The ETiCPA members provide professional services to small and medium enterprises (SMEs), helping them formalize operations, maintain accurate records, and access finance. AABE’s efforts to enforce financial reporting standards among SMEs enhance their credibility and investment readiness. The growth and sustainability of SMEs are crucial to job creation and inclusive GDP growth.
In conclusion, the combined impact of AABE’s regulatory oversight and ETiCPA’s professional development is transforming the accountancy profession into a driver of economic development in Ethiopia. Through improved transparency, stronger institutions, better tax compliance, and enhanced public trust, AABE and ETiCPA are laying the groundwork for a more dynamic and resilient economy. Their sustained efforts will continue to elevate the profession’s contribution to Ethiopia’s GDP and broader development goals.
To enhance the accountancy profession in Ethiopia, AABE and ETiCPA expect collaborative efforts from various stakeholders. Government bodies should support regulatory frameworks that promote compliance and transparency. Educational institutions must align curricula with industry needs, ensuring future accountants are well-prepared. Practicing accountants are encouraged to engage in continuous professional development. Additionally, businesses should prioritize ethical accounting practices. Together, these actions will strengthen the profession, ultimately contributing to Ethiopia’s economic growth and development.