Entering new markets for your company is a carefully calculated risk that requires thorough consideration. Africa has increasingly captured the interest of businesses around the world over the past decade. The continent offers many business expansion opportunities due to its diverse economies, growing middle class, and untapped potential. However, Africa also presents a unique set of challenges for growing businesses.

Africa is the second-largest continent in the world, both in land area and population. It has a diverse range of national and regional identities. Africa has seen major economic growth in the past decade. This was driven by improvements in infrastructure, the extraction of natural resources, and the growth of the middle class. Naturally, Africa was severely impacted by the pandemic and is still suffering from its impacts. However, economists predict that by the end of 2024 and into 2025, this will stabilize and expand at a rate of 4.8% again.

Corporations should consider Africa a prime location for expansion due to its vast potential for business growth. The Africa Accounting Advisory Group is the first Japanese accounting and consulting company in Africa. They provide valuable support for companies wanting to establish themselves in Africa, especially in Rwanda, Uganda, Kenya, Tanzania, and Nigeria. Its wide array of services encompasses accounting, taxation, and financial expertise needed to navigate and thrive in the African market.

In conversation with Yuga Kasai, the Founder & CEO of Africa Accounting Advisory Group

Q. How did Africa Accounting Advisory Group start? How has the company grown since its foundation?

Companies outsourced accounting and tax services to local firms but encountered problems such as poor quality and slow response times. As Japanese certified public accountants, we started getting inquiries about our expertise. This led us to create a company that helps businesses expand into Africa.

Starting in Rwanda, our reputation spread, and we now provide services in Kenya, Uganda, Tanzania, Nigeria, and South Africa.

Q. Why did you choose to start a Japanese accounting and consulting company based in Africa? Did you realize how big the African market was when you started the company?

Local businesses in Africa are committed to developing the African market. However, they encounter various challenges in the business environment. I wanted to help local businesses by offering consulting services in accounting and taxation. I have expertise in this field and can provide support based on Japan’s high standards and quick response abilities.

I was fascinated by the size of the African market as I carried on with my activities. Its potential and growth opportunities really caught my attention. Africa Accounting Advisory Group wants to unlock potential by helping companies and investors in African countries. They aim to provide support and cover the entire African market. By supporting these companies, we want to help Africa’s economy grow, leading to better education, healthcare, technology, industries, and more jobs. This will benefit Africa and also contribute to the development, diversity, and sustainability of the global economy.

Q. What are the different types of services offered by Africa Accounting Advisory Group?

We offer different services, like international tax advice, local tax advice, bookkeeping, and filing services. Additionally, we offer CFO services such as financial planning, capital policy planning, preparation of departmental financial statements, and budget management. We also provide consulting services like due diligence and internal audits.

Q. What are the advantages customers receive from choosing to do business with Africa Accounting Advisory Group over its rivals?

The difference with Africa Accounting Advisory lies in the quality of the services we provide:

• Expertise and Technical Skills:

We employ certified public accountants (CPAs) from various countries, including those with experience at major accounting firms. Notably, experience at renowned Japanese accounting firms contributes to maintaining global standards of quality.

• Experience and Track Record:

By 2024, we will have been involved in African tax accounting for approximately nine years, supporting over 100 companies. Our CFO experience spans various sectors, such as agriculture, manufacturing, and healthcare, allowing us to provide customized guidance across different sectors and scales.

• Quality Management System:

We implement standardization of operations to ensure consistent quality. Additionally, we have introduced project management and quality audit processes to enhance the quality of service delivery to our clients.

Q. What were some of the most memorable projects you and the team at Africa Accounting Advisory Group have worked on? How did the company’s expertise help elevate the final outcome of the project?

The most memorable project we handled was a challenging due diligence assignment for an investor. The target company’s internal controls were lacking, accounting practices were poorly managed, and the tax situation was risky. Although we had conducted several due diligence assessments before, the issues were consistently similar. Despite great ideas and strong teams, poor accounting and tax management hindered informed decisions and accumulated hidden liabilities, eroding the company’s value. This realization led us to commit to improving local startups’ controls, promoting healthy growth, and encouraging investment.

Q. How does Africa Accounting Advisory Group enhance a company’s corporate value? Can you explain to our readers why it makes Africa Accounting Advisory Group unique?

From the perspective of accounting, taxation, and finance, we can explain how a company can enhance its corporate value from two main angles.

• Minimizing the Erosion of Corporate Value

It is crucial to reduce risks that could erode corporate value. Africa’s tax systems are often opaque, and there is a shortage of skilled accounting personnel. Neglecting these areas can lead to increased future tax liabilities, lowering the company’s value during valuation. Organizing accounting practices helps companies understand their current situation better, leading to improved decision-making. Similarly, organizing tax practices minimizes unnecessary tax risks.

• Maximizing Corporate Value

Maximizing corporate value involves improving management accounting practices. This includes analyzing departmental profitability, conducting budget variance analyses, and formulating capital policies and financial plans. These steps can elevate the company’s status. Additionally, by outsourcing routine tasks such as taxation and accounting, the company can focus more on core activities like strategic planning, dedicating more resources to growth and value-adding activities.

Q. What are Africa Accounting Advisory Group’s plans for the future?

In the future, I aim to support local startups in their management and fundraising efforts while also promoting investment and market entry from overseas. By doing so, a vibrant synergy between emerging companies and international corporations will be fostered. My goal is to pave the way for exciting growth opportunities for both local innovators and global companies, creating a dynamic link between entrepreneurship and cross-border collaboration.

Q. Would you like us to highlight something important happening in your company that we may have missed asking about?

We support clients in formulating their financial plans and capital strategies, indirectly assisting in fundraising efforts and contributing approximately $10 million in raised funds to date. We have also conducted due diligence for local companies, aiding in investment projects. Advisory clients have praised us for enabling them to focus on their core business. Recently, we were recognized by Asia Business Outlook as one of the “Top 10 Most Promising Back Office Support Service Providers in Japan,” by Global Business Leaders as one of the “20 Companies Who Are Escalating Innovation in the Market in 2023,” and by The Silicon Review as one of the “30 Best CEOs of the Year 2024.”

Meet the Founder and CEO

Yuga Kasai is the founder and CEO of Africa Accounting Advisory Group. Yuga is a Certified Public Accountant in Japan and Rwanda, specializing in management accounting. He worked as a lecturer at a certification school, an auditing firm, a consulting company, and an accounting firm. After that, he completed an MBA at Keio Business School.

Yuga founded Africa Accounting Advisory, the first Japanese accounting firm in Africa, and now runs accounting offices in Kenya, Uganda, Tanzania, Rwanda, Nigeria, and South Africa. He has 10 years of practical experience in Africa and has worked with many companies. He has helped Japanese companies with local research, market entry, and management support. Additionally, he serves as an external auditor, director, and CFO for several Japanese companies.

“We solve all our clients’ worries and issues so that they can enhance their corporate value and impact on Africa”