The debate over whether university education or professional qualifications like CPA or ACCA are more valuable for national development is long-standing. In truth, both play distinct and complementary roles in building strong economies and societies.

University accounting education provides a broad foundation, equipping graduates with theoretical knowledge, critical thinking skills, and an understanding of ethics and governance. This holistic approach prepares individuals not only for accounting roles but also for leadership in finance, policy, and entrepreneurship.

Before discussing how Ethiopia’s academic institutions and the newly established Ethiopian Institute of Certified Public Accountants (ETiCPA) can work together, it is useful to outline the critical function of accountancy itself.

Accountancy is essential for creating and sustaining trust in economic systems. It ensures proper stewardship and accountability, holding managers and officials responsible to investors and the public. It facilitates decision-making by translating complex activities into clear, standardized information. By building trust and comparability through standards like IFRS, it enables capital markets and economic growth, directing resources to their most productive uses.

Furthermore, the profession protects stakeholders through audits and controls, ensures legal compliance in areas like taxation, and drives efficiency by tracking costs and performance. Today, it continues to evolve to meet new demands in sustainability reporting and data analytics.

In Ethiopia, however, the accounting landscape faces specific challenges. For decades, universities have produced thousands of accounting graduates. In the domestic workplace, an “accountant” is often defined simply as a university graduate in the field. Internationally, however, an “accountant” is recognized as a professional—with or without a degree—who possesses advanced, continuously updated skills validated by a professional body.

Many Ethiopian accounting graduates encounter a divergence between their university syllabi and the workplace which manifests fragmented industry practices and a lack of structured professional support after graduation. It has therefore become painfully evident that, while academic education provides an essential base, it has become insufficient to keep pace with rapid technological, regulatory, and competitive changes.

The inescapable reality is that there is currently a critical gap where most graduates are unable to meet the practical demands of the workplace without lengthy, expensive and often unstructured on-the-job training. The problem is further exacerbated by a lack of an affordable, local pathway to further their professional qualifications.

This is where professional bodies excel. Globally, qualifications like the CPA and ACCA are designed for precision and practical competence, ensuring financial reporting meets international benchmarks. The rigor behind these professional programs builds investor confidence, strengthens governance, and reduces risk.

The establishment of the ETiCPA is a timely opportunity to bridge this local gap. By offering a practical, globally-aligned syllabus, the Institute can complement —not replace—the academic system. It will create a new, accessible pathway for a wider audience: diploma holders, TVET graduates, working professionals, career changers, and those currently licensed as “authorized accountants.”

This model, common in many Commonwealth countries, democratizes the profession and fosters social mobility. Given Ethiopia’s significant shortage of qualified accountants, the ETiCPA can rapidly scale up the talent pipeline through accredited providers and online platforms, which is far quicker than expanding physical university infrastructure.

The Institute will also create synergy with universities, which could become accredited teaching partners. This relationship may encourage universities to enhance the practical relevance of their own programs and could lead to credit-transfer systems, creating a ladder of opportunity for all learners.

With control over its syllabus, the ETiCPA can nimbly integrate new national laws and regulations, ensuring the profession remains responsive to local needs. It will stand as the central platform for lifelong professional development of accountants in Ethiopia.

Perhaps its most profound impact will be on Ethiopia’s vast small business and informal sectors. These enterprises often cannot afford experienced university graduates  or fully qualified accountants. ETiCPA can cultivate a cadre of qualified accounting technicians to improve record-keeping, tax compliance, and access to finance. In doing so, it will be a key agent in formalizing the economy and strengthening the national tax base.

In summary, accountancy is far more than bookkeeping. It is the essential infrastructure that allows economic and social systems to function with trust and efficiency. It reduces uncertainty by providing reliable financial information—a public good that underpins market trust, efficient capital allocation, and institutional accountability.

One should think of accountancy as society’s GPS and mirror when it comes to understanding the activities of economic agents. Like a navigation system, it provides the data needed for informed economic decisions. Like a mirror—combined with an X-ray—it reflects true financial reality and, through auditing, verifies an entity’s health beneath the surface.

University education can sometimes lack immediate practical exposure, while professional certifications may focus heavily on compliance. Neither is sufficient alone. Together, they form a powerful synergy: universities cultivate thinkers and innovators; professional bodies produce practitioners who uphold transparency and trust.

In an era that demands both integrity and innovation, the question is not which path is better, but how to integrate both. By valuing academic depth alongside professional competence, Ethiopia can build a skilled workforce capable of driving sustainable economic and social development.

This article reflects my personal views, which are based on my own research, and does not represent the views of HST, its partners, or its directors.