The Institute of Chartered Accountants of India (ICAI) is now a recognized professional body in South Africa and it opened greater employment opportunities for the Indian Chartered Accountants in South Africa. The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the Mutual Recognition Agreement (MRA) between the ICAI and the South African Institute of Chartered Accountants (SAICA), which will aid the Indian accountancy professionals to explore employment opportunities in the region.
This MRA between the two accounting bodies of India and South Africa is to establish a mutual co-operation framework for the advancement of accounting knowledge, advancing the interests of their respective members, professional and intellectual development and positively contributing to the development of the accounting profession in both the countries i.e South Africa and India.
The MRA between ICAI and SAICA is likely to lead to greater employment opportunities for the Indian Chartered Accountants (CAs) in the region and also lead to greater remittances from them to India.
The agreement will facilitate recognition of Indian Accountancy professionals with local accountancy qualification in addition to existing ICAI qualification, which will increase their professional route (career) in South African markets.
Strategically it is very important for the ICAI to maintain a close relationship with SAICA, which will significantly help the Institute to further the interests of its members and strengthen the ICAI brand in the region. The relationship developed over the past few years is strategic in nature and of Mutual benefits.
It will also promote strong working relations between the two accounting bodies. The pact will increase the mobility of professionals at either end. In general, a skilled professional from accountancy, engineering or any other sector can get a job in other country but the signing of such agreements make it easier for them to find employment in that country.
Mutual recognition agreements (MRA) pave the way for recognition of the professional bodies of one country by the other. Regulatory bodies of various professional services like accountancy, architecture and engineering are encouraged to enter into these pacts. These agreements are part of free trade pacts that India has signed with several regions, including Singapore, Japan, South Korea and ASEAN.
MoUs with National Board of Accountants and Auditors (NBAA), Tanzania; Saudi Organization for Certified Public Accountants (SOCPA); Institute of Certified Public Accountants of Kenya and CPA Afghanistan are going to be signed once cleared by Government of India. The agreement would facilitate recognition of Indian Chartered Accountants (accountancy professionals) in a foreign land and would increase the mobility of professionals.