CAIRO: Whoever thought that accountants could be the life of the party? Well, on Tuesday afternoon at the Cairo Capital Club in Garden City, they became just that.
Mazars Mostafa Shawki, one of Egypt’s premier auditing and accounting firms, hosted a reporters’ lunch to discuss pressing issues of the day.
Mazars has a little extra swagger in its step these days – and not without reason.
The firm’s diverse offerings and the continued demand for audits despite the global economic downturn has allowed the firm, and the industry as a whole, to weather the crisis effectively.
Headlining the lunch were the firm’s managing partner, Dr Ahmed Shawki, and marketing and communications czar Muriel Bachelier.
International accounting and business advisory firm Mazars merged in 2006 with Mostafa Shawki, a regional accounting operation.
By all accounts, the two-year old partnership has been a success. Mazars has found a way to further extend its international reach – it’s now in 47 countries and is opening in five more this December -which Mostafa Shawki has benefited from the expertise imported by Europe’s fifth largest accounting firm.
While in many countries Mazars has simply taken the name of a preexisting local firm, in Egypt law dictates that the name be shared between the local firm and the international one.
This, in many ways, has worked to the company’s advantage as it now markets itself aggressively as a firm with local roots and international expertise.
Mazars is also building itself into an attractive option for the large multinational firms, which might have accounting needs all over the globe.
“It is a wish, said Bachelier, “to have a client and follow them all over the world.
And with 10,000 in staff worldwide and 450 in Cairo, Mazars is well on its way.
Shawki began his talk by offering his interpretation of the roots of the global economic crisis.
He expounded on the same litany of causes that many have become accustomed to. Unqualified borrowers, unsupervised lenders, complicated financial products, an inappropriate “dilution of credit risk were all to blame, he said.
Home ownership, he argued was “part of the social weaving of America and primarily culpable for the beginnings of the crisis.
Egypt, he went on, is two months behind the US in its feeling the effects of the crisis. He was pleased though, that because of the simplicity of Egypt’s banking system, it seemed to be weathering the economic crisis better than many developing and developed countries.
“Egypt was not much affected. This is because the banks did not offer sophisticated products, he said.
Shawki also discussed a handful of ways that the country might come out of the crisis stronger than before.
One major priority, he said, is to rebuild the banking system in the country.
“Now there is no confidence in the banking system, and we have to renew this confidence, he said.
Shawki also argued that commitment to building infrastructure is a good means to stimulate the economy at a time where there is a risk for economic stagnation.
Building infrastructure, he said “should be done by the government, otherwise they will not be able to circulate funds.
Finally, he argued, presenting Egypt as a cheaper alternative to Europe will insure continued influx of tourists. Growth in the tourism industry, he argued, might serve as a critical life raft in the midst of this economic monsoon.
“Tourism is the first industry in Egypt, he said.
Shawki also expressed continued optimism for his firm and the accounting industry as a whole. Firms struggling with the crisis, he argued, “want to reduce costs, and they need consultants to help them.
By offering consultancy services, the company has been able to compensate for the slowed growth on the accounting side.
Fortunately for auditors, though, argued Shawki, all firms must have their books audited, in good times and in bad.
Looking ahead, Shawki is optimistic in the continued growth of the firm, noting that they are maintaining their 2009 growth projects.
That said, Bachelier argued, the firm is placing a premium on quality over quantity.
“Maybe our objective is not to be number one in size, she said, stressing the firm’s commitment to cultural integration and civic engagement as a means of illustrating the firm’s commitment to being number one in services provided.
If Shawki’s optimism is to be believed, Mazars Mostafa Shawki may emerge unscathed from the economic maelstrom.
And who would dare doubt an accountant?
