RwM & Co Certified Public Accountant

RwM & Co Certified Public Accountant RwM & Co. Certified Public Accountant is a firm of reknown experience and expertise tailored on the Big4 rigorous training in both private & public secto

25/05/2026

Could the guy he is speaking about

08/07/2025

Much as the African continent is seen as the next investment destination by 2040 much is desired.
While it has a young population, the question remains is it employable?
Little is being done to transform the development models around from informal to formal sectors. The population growth which is mostly seen in the former economic models, where demand is created by population numbers, yet the quality of life is rather low than those in a more structured economic growth models. One can give examples of African countries with population lead development model;
Nigeria, Ethiopia and Egypt could be some of them, while the likes of Mauritius, South Africa and to some extend Kenya have structured economic models, with skilled and semi-skilled manpower. Today Kenyans must be appreciating President Moi's move from education models left by the colonialists preparing people for white color jobs which remain a myth, where students were compelled to do technical studies in the 90s, which made his government unpopular. Today Kenyans traverse the whole world delivering their semi-skilled labour services than the skilled ones. This can be manifested by Safaricom's mobile money remittances back home.
African countries which have remained unstructured need to do manpower planning by firstly training their population into being semi-skilled/skilled labour hence job creators. Because if that is not done their birth rates will supercede their economic growth rates and will simply result in negative economic development.
What this means is that the job creation rate (through development) will be superceded by the birth rates, hence resulting in no significant job creation impact. There would always be gaps in job creation. This is worse when the population is rural based, this will result in environmental degradation.
Some countries seen to be overshadowed, where their population explosions seems not to be checked e.g Uganda or DRC, which has moved from 44 to 51 million and 89 to 106

01/01/2023

Happy new year my dear followers and equally my observers. Let the new year be filled with blessings, peace, hope and prosperity. In Jesus's name Amen.

14/07/2021

GOVERNANCE TIPS
What is meant by reasonable assurance from a governance perspective?
When auditor give reasonable assurance on the preparation of financial statement (FS) is because they do audits on a sample basis.
Their assurance on these FS is not absolute, and even if they did a full audit (100%), you cannot rule out management conspiracy to perpetrate and conceal fraud or even human errors. Because auditor rely on information that has been provided by their audit client. However their test can sight gaps and variation that are inconsistent from a high level analytical review which is done at the inception of an assurance engagement for purposes of placing reliance on FS preparation.
The FS preparation and operational environment is what they audit.
From an environment perspective its the internal controls (IC) in place to minimise fraud and errors, and the design of IC is a management responsibility. The auditor will review those control to give reasonable assurance that there are minimal leakages and gaps, and where there are gaps, the auditors will raise then in a Management Letter. or "Letter of Internal Management Weaknesses" as they refer to it in some jurisdictions.
The control environment also includes the system processes within which these FS are prepared and therefore need to be reviewed to check whether there are minimal errors, misstatement, misrepresentation, leakages or no overrides.
Assurance is therefore needed on the Information Technology General Controls (ITGC) environment,.which is carried out with a specialised team of Certified Information System Auditors (CISA) . However this ts also not an absolute assurance, because in a flash of a second hackers and fraudsters can go around controls on firewalls and Operating Systems to perpetrate fraud and can cause great financial losses, harm and damage to databases.Therefore vigilance on the computing environment needs to be enhanced and always on lookout for any possible attacks.

22/06/2021

Strategies and Operational management tips
Do entities move to other markets for only financial benefits?
Not at all times do entities go into markets for financial gains, at times they spread in regions that makes them appear to be commendable market foot print.
When companies grow in size they also like being seen as giants on a given continent(s). There are some that are measured in numbers of subscriber or turnover, while others its the geographical spread.
Whereas AT&T, Verizon, Nippon, Deutsche, T-Mobile, or Vodaphone could be considered the biggest telecoms companies globally, Airtel may be considered widely spread on the globe in terms of geographical and subscribers as well.
Indeed it makes more sense in as far as spreading the risk. Let's take China Mobile as an example which has similar number of subscribers, had Covid_19 taken a serious impact on the population and the economy of China. It would certainly have impacted the company's overall performance as well. But as I had earlier said Airtel would not suffer as much even if Covid-19, impacted India, because it operates in more than one continent. Why I compare Airtel and China Mobile is their huge subscriber numbers.
Its important to spread(footprint) in more than a single market to avoid risks like that of Covid;19.
Therefore companies do not only choose to enter markets for purposes of financial gains, but also by spreading their operational risks (avoiding putting eggs in the same basket).

03/05/2021

STRATEGIC & OPERATIONAL MANAGEMENT TIPS.
Why do group formation move to diverse market and acquire other entities?
There are group formations that have difficulties in entering a given market, there are many strategies, however Mergers & Acquisition commonly referred as (M&A) could be one of them. There are entities out there that struggle to keep their heads above water. These are heavily targeted by these groups that have resources and synergies and acquire the weaker companies.
The targeted companies commonly referred to as "prey" are taken over by these financial giants. The "prey" could be having resources, copy or patents rights or rare technology or knowhow which these group acquirer may wish to benefit from this acquisition.
Most of the times the acquired entity looses control to the incoming merger. And most of the times their management tries to resist the takeover. for fear of loss of their jobs.
Most mergers come with their own challenges especially conflicting corporate culture. Its very difficult for the incoming entities management style to fit well with the acquired company.
There is a brand phaseout of the acquired company and gradually their name gets dropped.
The acquiring entity maintains their strategic interest in the company while the rest is discarded.

30/03/2021

STRATEGIC & OPERATIONAL MANAGEMENT TIPS
How do group formation devise means of increasing their shareholders' return on Investment?
Groups operate from different jurisdictions with diverse tax regimes. while there are a number of reasons why they would expand in a given market, tax avoidance schemes are one of them. They often take advantage and purposely move to a different market for purposes of tax avoidance. This can only be easily achieved where there are bilateral tax agreements. Commonly referred to as double tax agreements (TDA). These are tax agreement between intending countries to ease and also give tax incentives to investors in order to repatriate back profits to the groups' country of origin or residence.
They overprice when they sell to their subsidiaries in these tax heavens to maximise on the tax benefit derived from the existing DTA.
For example they sell to subsidiaries raw material at prices higher than would have been in normal course of business, thereby transferring costs to this regime in view of the tax benefits. Commonly referred to as transfer pricing, and most of the times leaves the subsidiary as a loss making unit, for purposes of tax avoidance scheme. Upon consolidation of results at group level, the group's tax liability is reduced as a result.

16/03/2021

STRATEGIC & OPERATIONAL MANAGEMENT
How can entities in group formation improve their performance?
In most group formations, entities mature under their maturity path model, and as they grow profitability reduces.
This is mostly due to maturity of their products along their product cycles, due to reduced innovation, excessive advertising costs, and other stakeholders making competitive and complementing goods.
What needs to be done other than extending in other new markets, is cutting costs at the operational level of the group through outsourcing services that were previously provided in-house.
Most groups outsource services like Networks in telecommunication companies, payroll services, finance, HR, Marketing e.t.c for example through franchises.
In so doing they remain concentrated on their core businesses.
However those in-house provided services that are very strategic like; Corporate & Secretarial services and Research & Development may be retained for matters of strategic interests and being very confidential nature.
In outsourcing in-house provided services costs such as human resources are reduced tremendously .
Confidential strategic information should be well protected by for example not being on shared mail servers,away from intending hackers.

24/02/2021

STRATEGIC & OPERATIONAL MANAGEMENT TIPS.
Other than strategic tax planning initiatives, an investor may chose to move to a new market, to increase his turnover where the domestic market is getting saturated or appears matured. As products life cycles get to their upper quartile, their profitability reduces and sales drop, due to a saturated market.
The symptoms of a saturated market are high advertising costs, and cut throat completion where complementing goods are gaining ground. Hence a redused profitability on products margins..
In an effort to benefit from from fast mover advantage, entities look else where in a virgin market, where they can make a higher profit to compensate for the low profit margins in the domestic markets. It can also be a carbon foot print in global market coverage. And its also a yard stick in measuring how extensive is their market coverage.
As fast mover the risk is high. Hence the risk and rewards that comes with taking risks.
Feasibility studies need to be well studied, take for example an Indian pharmaceutical producing generic products, the company needs to be careful when launching in a genuine product market. While the East African market does very well with generic drugs, as opposed to a French or Portuguese markets that are more sophisticated

09/02/2021

STRATEGIC & OPERATIONS MANAGEMENT TIPS.
Indeed proximity to the market and final consumers can be one of crucial factors that an investor may consider when locating his industry.
Some industries move closer to their final consumers(FC), especially where the FC has a variety of choices available and after sales service is needed to sustain a product in the market.
The investor gets the required consumption pattens on the product demand and may choose to bring closer his products to the FC. For example the automobile manufacture can set up an assembly plant, or spare part factory to service a given market depending on demand. South Africa is a good example for BMW, Mercedes Benz, and Toyota.
This is a market driven strategy meaning the market dictates your investment decisions.
However other considerations have to come into play, as technical manpower, the relative cheapness of energy, cost of production, proximity to the sea, level of infrastructure development such as rail network., relative stability of the currency(inflation), stringent foreign exchange rules, overall security, repatriation of profits and tax incentives e.t.c. Angola is a mineral rich country but with very strict foreign exchange rules, which makes investors way their choices.

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