The Union Cabinet has approved a mutual recognition agreement (MRA) between the Institute of Chartered Accountants of India (ICAI) and South African Institute of Chartered Accountants (SAICA) which will aid the Indian accountancy professionals to explore employment opportunities in South Africa. “The MRA is likely to lead to greater employment opportunities for the Indian Chartered Accountants in the region and also lead to greater remittances from them to India,” an official statement said Wednesday.
MRAs pave the way for recognition of the professional bodies of one country by the other. Regulatory bodies of various professional services like engineering, accountancy and architecture 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. The agreement will facilitate recognition of Indian accountancy professionals with local accountancy qualification in addition to existing ICAI qualification, which will increase their professional avenues in South African markets.
It will also foster strong working relations between the two accounting institutes. Besides, the pact will increase mobility of professionals at either end and herald a new dimension for small and medium businesses in both the countries. In general, a skilled professional from sectors, including medical and accountancy, can currently get a job in other country but signing of such agreements make it more easier to find employment.