Accession of the Democratic Republic of Congo to OHADA Accounting Standards: Challenges, Benefits, and Perspectives

Abstract

This study aimed at exploring the benefits and challenges resulting from the DRC’s accession to OHADA accounting principles. To this end, a review of the existing literature on OHADA accounting standards and their application in the DRC was supplemented by questionnaires and semi-structured interviews conducted among accountants, auditors, university professors and executives of foreign groups with subsidiaries in the DRC. This study concludes that the benefits of the DRC's membership of OHADA are gradually becoming apparent and include improved information exchange with foreign investors and greater attractiveness for certain companies. However, many companies face challenges in implementing these standards. These include lack of staff training and resistance to change as well as lack of technological and financial resources. The institutions in charge of regulating the accounting profession and popularizing the accounting standards also face challenges that are intrinsically linked to the vastness of the country and the lack of financial resources. Finally, the informal nature of the Congolese economy prevents full compliance with some standards, notably those based on IFRS. Given the DRC’s membership of OHADA, the country is faced with a need to overcome these challenges to fully benefit from the benefits attributed to the adoption of OHADA standards, which are more modern and adapted to international trends. The study made it possible to highlight a certain number of solutions such as a greater cooperation between practitioners, universities and accounting bodies, more studies and analyses, the establishment of regular conversations in companies about accounting standards, the formalization of market transactions and stabilization of tax regulations.