Ethiopia’s Audit Regulator Raises Concerns Over Foreign Competition

July 20, 2026
By Mintesinot Nigussie

Ethiopia’s Accounting and Auditing Board has raised concerns over increasing pressure to open the country’s accounting and auditing profession to foreign practitioners, warning that the sector needs stronger local capacity before facing international competition. The board said international institutions have been requesting Ethiopia to allow foreign accounting and auditing professionals to obtain licences, but argued that opening the market without first developing domestic expertise could weaken the local profession and increase dependence on foreign service providers.

“If we open the sector without making local professionals competent, foreign experts could dominate the market, weakening the accounting profession and causing income generated from the sector to leave the country,” the board said. The discussion comes as Ethiopia expands economic reforms and attracts foreign investment, increasing demand for qualified accountants and auditors. The board said businesses, including those linked to the emerging capital market, require more professionals with internationally recognised skills.

Fikadu Agonafir, deputy director-general of the Ethiopian Accounting and Auditing Board, said Ethiopia currently has about 230 professionally qualified auditors and around 500 recognised accounting professionals. The board has conducted a three-year assessment of auditors and taken regulatory measures against professionals who failed to meet required standards, including suspending licences in some cases, Fikadu told Sheger FM.

The regulator said it is focusing on improving professional standards through training and certification before taking stronger disciplinary action. It recently launched the Institute of Accounting Professionals to register, develop and certify accounting professionals. Fikadu said the shortage of qualified professionals could become more significant as demand grows, warning that foreign practitioners, including those from neighbouring countries, could increasingly fill positions if Ethiopia fails to expand its domestic talent pool.

The board said all accounting and auditing professionals will eventually be required to obtain professional certification through the institute. It is also working with training institutions, including Addis Ababa University, to provide opportunities for professionals to improve their technical capabilities. The Ethiopian Accounting and Auditing Board is responsible for licensing accounting and auditing professionals, monitoring compliance with professional standards and taking regulatory measures against violations.

Source: FSX Business News