Dealing with income inequality in SA

The skills deficit in South Africa needs to be addressed to boost employment and tackle income inequality says CIMA.

The Chartered Institute of Management Accountants (CIMA) is today calling for South Africa to invest more in professional education in order to deal with the high levels of unemployment and address income inequality across the country.

The level of unemployment in South Africa is at a record low and income inequality remains worryingly behind advanced economies, yet recruitment surveys (Robert Walters Survey, Manpower Talent Shortage survey) show that a lack of skills is fuelling unemployment - with professional jobs in particular becoming increasingly difficult to fill. The failure of the education system to produce graduates and train professionalswith the necessary skills for the work place was acknowledged earlier this year by South African President Jacob Zuma at the World Economic Forum in Durban.

In the face of the twin challenges of high unemployment and a lack of skilled workers, CIMA is highlighting the value of investing in professional qualifications to help people to obtain jobs and build careers.

Recent research among accounting professionals carried out by CIMA showed that students studying the CIMA qualification received an average salary of R393,000 in 2017 compared to an average of R863,000, once fully qualified.These statistics clearly demonstrate the value of securing a professional qualificationin order to improve skills and demonstrate competence.In addition, this benefits companies and society at large.

Commenting on the issue of skills deficit, Regional Vice president: Africa, Management Accounting,BadibangaPromesse, FCMA, CGMA said:

“There are lots of skilled jobs in South Africa that are just waiting to be filled by the right candidate but there is a need for more investment in training professionals to satisfy the demand. Not only is a better trained work force good for employers but it also helps to drive the economy and could make a significant step towards bringing down the worryingly high levels of unemployment and income inequality.

Here at CIMA, we are calling for more career opportunities to be opened up for people byasking employers, including the government, to increase their investment in professional educationand training for employees.”
Further information on the earning potential of management accountants can be found at our Salary Insights tool.