Internal document formalising a need before a PO is issued.
The purchase requisition is the formal entry point of the procure-to-pay cycle. A requester (team lead, operations, project manager) describes the need, goods or services, quantity, justification, preferred vendor. Once approved per the policy in force, it triggers either an RFQ or a direct PO issuance. The requisition is also the document that allows budget commitment ahead of contractual signature.
Commitment contract between buyer and vendor.
The purchase order materialises the company's commitment to a vendor: line items, prices, quantities, terms, dates. Under OHADA law it also serves as supporting evidence for deductible VAT and audit traceability. Once goods are received and the invoice cleared via three-way matching, the PO is closed.
Procedure consulting several vendors before award.
The RFQ lets the buyer consult several vendors on the same need, compare their responses (price, lead time, terms) and award the deal. In the OHADA context, the RFQ becomes mandatory above thresholds defined by public procurement regulations or by the organisation's internal policy. For the private sector, the RFQ remains a tool of competition and documentation for the auditor.
Automated reconciliation between PO, goods receipt and invoice before posting.
Three-way matching (3WM) compares three documents, the purchase order, the goods receipt and the supplier invoice, on line items, quantities, prices and VAT. Any variance beyond configured tolerances pauses posting until review. It's an internal control expected by OHADA-zone external auditors and a globally recognised anti-fraud mechanism.
Full cycle from business need to settled liability.
Procure-to-pay refers to the full chain: requisition, RFQ, PO, goods receipt, invoice, payment, accounting posting. It contrasts with source-to-pay (S2P), which adds upstream sourcing strategy and vendor selection. P2P is the daily operations work of a finance department.
Vendor identity and compliance verification at onboarding.
Vendor KYC (Know Your Customer applied to vendors) bundles the collection of legal documents (trade register, tax ID), bank details, tax and social-security compliance certificates (CNPS, CNSS, tax good-standing), and screening against international sanctions lists. In the OHADA zone, those documents are required by external auditors and lenders.
ICC international rules defining responsibilities between buyer and seller.
Incoterms (International Commercial Terms) are rules published by the International Chamber of Commerce (ICC) that define, for each international sales contract, who bears transport, insurance, customs duties, and when risk transfers from seller to buyer. The current version is Incoterms 2020 (11 rules in two categories: all transport modes and sea/inland waterway only). Most used in African trade: EXW (Ex Works — minimum seller obligations), FOB (Free On Board — used for maritime exports), CIF (Cost Insurance Freight — common for imports), DDP (Delivered Duty Paid — seller handles everything to delivery). For African SMEs importing equipment or raw materials, the Incoterm is stated on the PO and determines who pays customs and insurance.
Systematic evaluation of vendors against quantifiable criteria.
Vendor scoring (or supplier evaluation) consists of assigning a score to each vendor based on measurable criteria, in order to prioritise reliable vendors and identify high-risk ones. Common criteria: on-time delivery rate, quality compliance rate, responsiveness to claims, financial soundness (balance sheet, years in operation), regulatory compliance (valid RCCM, NIF/IFU, no sanctions), price vs market, production capacity. ISO 9001:2015 (section 8.4 on externally provided processes, products and services) mandates surveillance and evaluation of external providers. For African SMEs, a simple 5-criterion scoring tool rated out of 20 is sufficient to objectify procurement decisions and prevent single-vendor dependency.
Number of days between invoice receipt and actual payment disbursement.
Payment terms (Days Payable Outstanding, DPO) is the KPI measuring how many days a company takes on average to pay its vendors. A long DPO improves the buyer's cash position but strains the vendor's. Common timelines: 30 days net as international standard, 45-60 days in negotiated contracts, up to 90 days for public procurement (some African codes set a maximum legal deadline). The OHADA Uniform Act on General Commercial Law (AUDCG) recognises contractual freedom on payment terms but provides for late-payment interest. For African SMEs, payment terms are often negotiated based on available mobile money: an Orange Money or MTN MoMo payment can be instant, reducing effective DPO to 1 day.
Safaricom mobile payment service, pioneer in East Africa since 2007.
M-Pesa (M for mobile, Pesa for money in Swahili) is a mobile payment service launched in 2007 by Safaricom in Kenya. It enables sending money, paying merchants, settling bills and accessing financial services via a basic phone (even without a smartphone). M-Pesa operates in Kenya, Tanzania, Ghana, Mozambique, Egypt, Ethiopia and South Africa. In Kenya, M-Pesa represents a significant share of GDP in transaction volume (GSMA Mobile Money Report). For B2B procurement, M-Pesa Business enables paying vendors directly from a corporate M-Pesa account. M-Pesa APIs (Safaricom Daraja API) allow direct integration into procurement software.
Zimbabwe's leading mobile money service since 2011.
EcoCash is the mobile payment service of Econet Wireless Zimbabwe, launched in 2011. It has become Zimbabwe's most widespread payment system, in a context of monetary crisis (abandonment of the Zimbabwe dollar in 2009, dollarisation, then introduction of the RTGS dollar / ZiG since 2024). EcoCash enables P2P transfers, merchant payments, bill payments, and B2B payments. In an environment where bank account access is limited for part of the population, EcoCash plays a structural role. For companies procuring in Zimbabwe, EcoCash Business is an alternative to RTGS bank transfers and offers shorter settlement times.
Payment and collection platform used by the Nigerian federal government.
Remita is a Nigerian fintech platform developed by SystemSpecs. It is used by the Nigerian federal government for revenue collection and civil servant salary payments via the IPPIS (Integrated Payroll and Personnel Information System). For businesses, Remita offers: customer payment collection (Remita Biller), bulk disbursement (Remita PayOut), inter-bank bank transfers via the platform, and direct debit. For Nigerian SMEs or companies selling to the Nigerian government, Remita is often a prerequisite to receive government payments. The Nigeria Interbank Settlement System (NIBSS) is the underlying interbank network processing transactions.
Document inviting vendors to submit a technical and commercial proposal.
A Request for Proposal (RFP) is a procurement document by which the buyer solicits qualified vendors to submit a complete proposal including technical approach, references, team, timeline and price. It differs from the RFQ (Request for Quotation) by its qualitative dimension: not only price but also methodology, experience and added value are evaluated. RFPs are common for professional services (consulting, IT, audit), construction works, and complex supplies. In African public procurement, the RFP often corresponds to the Open Tender with a Dossier de Consultation des Entreprises (DCE).
Price solicitation from multiple vendors for a defined requirement.
A Request for Quotation (RFQ) is the document by which a buyer asks multiple vendors to submit a price for a precise specification (quantity, specs, deadline, delivery location). It is the basic competitive solicitation tool in the procure-to-pay cycle. Unlike the RFP, there is no qualitative evaluation: the main criterion is price. A well-written RFQ includes: precise description of goods/services, quantities, units, delivery conditions (Incoterm), offer submission deadline, desired payment terms. CIPS (Chartered Institute of Procurement and Supply) recommends a minimum of 3 quotes for any significant purchase.
Multi-year agreement setting general terms with a selected vendor.
A framework contract (or master agreement) is a multi-year commercial agreement signed between a buyer and a vendor, setting general terms: pricing, lead times, quality, intellectual property, confidentiality, termination. Individual orders (call-off orders or purchase orders) are issued under the framework without renegotiating terms each time. Benefits: shorter procurement cycle (no repeated tender), volume-negotiated prices, stable vendor relationship. Standard practice in sectors with repetitive purchasing (IT, maintenance, office supplies, recurring services). In African public procurement, the framework agreement is recognised in most procurement codes for common supplies.
Purchase order executed in multiple partial deliveries over a set period.
A blanket purchase order (or standing order) is a purchase order placed for a total quantity or global amount, delivered in multiple releases as needed by the buyer over a defined period (quarter, year). Example: ordering 10,000 reams of paper in January for weekly delivery of 200 reams for one year. Benefits: single approval process, locked price for the duration, no renegotiation for restocking. Used mainly for office supplies, spare parts, regularly consumed raw materials. The undelivered balance is tracked in the procurement system; at expiry, the remaining PO is closed.
List of pre-approved products and services with negotiated prices for internal buyers.
A procurement catalog is a reference of pre-approved products and services with unit prices negotiated with selected vendors. Internal buyers order directly from the catalog without going through a tender. Objective: speed up routine purchases, secure negotiated prices, reduce maverick spend. The catalog can be hosted in the procurement software (Procura) or connected to a vendor punchout catalog. Best practice: review catalog prices at least once a year and expand it with panel vendors. For African SMEs, the catalog simplifies procurement of office supplies, consumables, IT equipment and recurring small equipment.
Purchases made outside approved channels, contracts and panel vendors.
Maverick spend (or rogue spend) refers to purchases made by operational staff without going through the procurement department, without competitive bidding, and/or from non-approved vendors. It represents on average 20-40% of total spend in companies without a P2P system (CIPS Procurement Performance Benchmarks). Consequences: inflated prices (no competition), unevaluated vendor risks (no KYC), potentially non-deductible VAT (vendor without IFU/NIF), budget non-compliance (unrecorded commitment). Digital P2P reduces maverick spend because every purchase goes through the mandatory approval workflow, pre-approved catalog, or tracked RFQ.
Classification and analysis of procurement spend to identify savings and risks.
Spend analytics consists of collecting, cleaning, classifying and analysing an organisation's spending data to answer key questions: who spends what, with which vendors, in which categories, over which periods? It identifies vendor consolidation opportunities, price anomalies, maverick spend, underoptimised categories and dependency risks. Classification typically follows the UNSPSC (United Nations Standard Products and Services Code) for global organisations, or a company-specific internal taxonomy. In Procura, spend analytics is available in real time via AI Insights, which automatically segment spend by vendor, category, department and period.
Restricted list of pre-qualified, evaluated vendors for each spend category.
A vendor panel (approved vendor list or preferred vendor list) is the list of authorised vendors for each procurement category, having passed qualification steps (KYC, technical, financial and quality capacity). Only panel members can be solicited without an exceptional approval process. Panel management includes: onboarding (initial qualification), annual update (KYC document renewal, performance re-evaluation), and delisting (exclusion for poor performance or detected fraud). For African SMEs, a panel of 3-5 vendors per key category is sufficient; for large companies, the panel can reach several hundred pre-qualified vendors.
Process of qualifying and registering a new vendor.
Vendor onboarding is the set of steps to integrate a new vendor into the procurement system: document collection (RCCM, IFU/NIF or TIN, criminal record extract, social and tax compliance certificates, references), KYC verification (real identity, no sanctions, solvency), creation of a vendor record in the ERP/procurement software (legal name, bank details, payment terms), approval by the procurement or compliance department. Rigorous onboarding is the first line of defence against procurement fraud (fictitious vendors). In Africa, onboarding must also verify the validity of the RCCM (local commercial register) and the entity's physical existence.
Maritime transport document constituting the title of ownership over goods.
A Bill of Lading (B/L) is a document issued by the maritime carrier (shipping company) to the shipper (exporter) after the goods are loaded on board. It serves three functions: (1) receipt of loaded goods, (2) proof of the transport contract, (3) negotiable title of ownership (endorsable to a third party). In African import-export trade, the B/L is essential for customs clearance: the importer must present the original B/L (or a seaway bill for shipments without a letter of credit) to customs and the freight forwarder to release the goods. Incoterms FOB and CIF terms necessarily involve a maritime B/L.
Logistics intermediary specialised in international transport and customs clearance.
A freight forwarder (or customs broker) is a logistics provider that organises the international transport of goods on behalf of the buyer or seller: maritime or air freight booking, document management (B/L, customs invoices, certificates of origin), import or export customs clearance, and delivery to the client's warehouse. In Africa, the freight forwarder is a key actor for importing SMEs because customs procedures are complex and vary by country. Freight forwarders are licensed by national customs administrations. For an African SME importing equipment or raw materials, working with a trusted freight forwarder reduces customs clearance times and the risk of overpayment on duties.
Official procedure for declaring and releasing goods at borders.
Customs clearance is the mandatory administrative procedure by which the importer (or freight forwarder) declares goods to the customs authority, pays applicable duties and taxes, and obtains the release authorisation (bon à enlever, BAE) to collect the goods. Main steps: (1) submission of the customs declaration (Single Goods Declaration or national equivalent), (2) tariff classification of goods under the Harmonised System (HS), (3) calculation of customs duties (customs value × HS rate × any preferential regime), (4) physical or documentary inspection by customs officers, (5) payment and release. Duration varies from 1 to 10 days depending on port and country. In Africa, customs digitalisation (ASYCUDA) is accelerating procedures at many ports.
International 6-digit nomenclature for classifying all traded products.
The Harmonised System (HS) is the international customs nomenclature developed by the World Customs Organization (WCO). It assigns a 6-digit numeric code to each type of product traded worldwide, enabling the correct customs duty rate (tariff) to be applied. HS codes are organised into 21 sections, 96 chapters, and broken down into headings (4 digits) and subheadings (6 digits). Countries can add national subheadings (up to 8 or 10 digits). In Africa, HS classification is the basis of the EAC Common External Tariff, the UEMOA CET and the CEMAC CET. Incorrect HS classification can result in: underpayment of duties (customs fraud) or overpayment (financial loss). The HS code appears on the commercial invoice, B/L and customs declaration.
Automatic extraction of invoice data by artificial intelligence.
Invoice OCR (Optical Character Recognition) refers to AI technologies that read an invoice as an image or PDF and automatically extract structured data: invoice number, date, net amount, VAT, total, vendor name and address, tax number (IFU/NIF/TIN), line items. Modern OCR models combine traditional optical recognition with language models (LLMs) to handle layout variety and languages (French, English, Arabic for North Africa). In Procura, the AI OCR module extracts data from each submitted invoice and pre-fills the matching form, reducing manual entry and human errors. OCR is especially valuable in Africa where scanned paper invoices and variably-formatted PDFs coexist.
Migration of the paper/email procurement cycle to an integrated automated P2P system.
Digital procurement transformation refers to the shift from an informal procurement process (paper, email, WhatsApp, spreadsheets) to an integrated Procure-to-Pay software covering the full cycle from purchase request to vendor payment. Documented benefits: AP cycle reduction of 50-70% (Ardent Partners, State of ePayables 2023), maverick spend reduction of 30-40%, improved tax compliance (better VAT deductibility tracking), fraud reduction (automatic matching), and real-time visibility on commitments. In Africa, digital transformation is facilitated by mobile money penetration, availability of cloud SaaS accessible from a smartphone, and rapid deployments (Procura: live in under one week). Main barriers: change resistance, variable internet connectivity in rural areas, and digital skills gaps among some buyers.
Banking instrument guaranteeing payment to an exporter against document presentation.
A letter of credit (or documentary credit) is an irrevocable commitment issued by a bank at the buyer's (importer's) request to pay the seller (exporter) upon presentation of compliant documents. It is governed by the Uniform Customs and Practice for Documentary Credits (UCP 600) published by the International Chamber of Commerce (ICC). In Africa, LCs are frequently used for imports of raw materials, equipment and goods from Asia and Europe.
Bank's commitment to pay a beneficiary if its client fails to meet obligations.
A bank guarantee is a contract whereby a bank (the guarantor) undertakes to pay a specified amount to a beneficiary if the principal (its client) fails to meet contractual obligations. It covers situations such as non-delivery, poor performance, or failure to return an advance. Bank guarantees are governed by the ICC Uniform Rules for Demand Guarantees (URDG 758). They are common in public procurement and large commercial transactions across Africa.
Structured category-level procurement optimisation process through market analysis and competitive tendering.
Strategic sourcing is a procurement methodology that encompasses spend analysis by category, supplier market study, supply strategy definition, competitive tendering and selection on criteria (price, quality, lead time, risk). Popularised by large companies and consulting firms (McKinsey, A.T. Kearney), it is now applicable to African SMEs to reduce costs and improve supply quality. According to CIPS, strategic sourcing can generate savings of 5-15% on analysed categories.
Reducing the number of active suppliers to increase negotiating power and simplify management.
Supplier consolidation involves concentrating purchases with a reduced number of qualified suppliers to increase volumes per supplier, improve commercial terms (price, lead time, quality) and reduce administrative burden. It is one of the levers of strategic sourcing. However, excessive consolidation can create dependency risk: best practice is to maintain at least two qualified sources per critical category.
Contractual agreement defining minimum service levels required from a supplier.
A Service Level Agreement (SLA) is a contractual clause or document that formalises a supplier's performance commitments: service rate (OTIF — on time in full), response time, quality conformance rate, dispute resolution lead time, system availability for IT vendors. SLAs are accompanied by financial penalties or contractual maluses for non-compliance. They are an essential tool in supplier relationship management for measurable performance.
Key performance indicators measuring the effectiveness of the procurement function.
Procurement KPIs (Key Performance Indicators) are the quantitative indicators that evaluate procurement department performance across several dimensions: achieved savings (% of spend), contract coverage (% of spend under contract), average PO cycle time, supplier compliance rate, invoice dispute rate, average payment days, catalogue adoption rate and cost per order. ISO 20400 on sustainable procurement also includes sustainability indicators.
Competitive tender procedure open to suppliers from multiple countries.
An international competitive tender (ICB) is a public or private procurement procedure open to bidders from multiple countries. It is generally required by international financiers (World Bank, AfDB, BOAD) for projects they fund above a certain threshold. The procedure includes: publication in national and international journals, a standardised tender dossier, a submission period ≥ 45 days, public bid opening, and technical then financial evaluation.
Set of methods to optimise stock levels to meet demand without tying up unnecessary cash.
Inventory management is an essential component of the supply chain. It seeks to balance having sufficient stock to meet demand (service level) against minimising holding costs (financial immobilisation, rent, insurance, depreciation). Key methods are: ABC analysis (classifying items by importance), safety stock, reorder point, EOQ (Economic Order Quantity), and lean / just-in-time (JIT). In Africa, international supply chain disruptions reinforce the importance of appropriate safety stock.
Operational function ensuring availability of raw materials, supplies and services needed for operations.
Supply (or purchasing) refers to all operations that allow a company to have the goods and services needed for its activity at the right time, in the right quantity and at the best cost. It includes: needs planning, order quantity calculation, issuing supplier orders, delivery monitoring and inventory management. Supply is distinct from strategic sourcing (which covers supplier selection and qualification): it is the operational execution of the procurement strategy.
Physical validation step of a supplier delivery, confirming conformity in quantity and quality.
Goods receipt is the step where a company verifies that what it receives matches what it ordered (purchase order) in terms of quantity, quality and timing. It results in a goods receipt note (GRN) which triggers the recording of the supplier liability and forms the basis for 3-way matching (PO + GRN + invoice). Any discrepancy noted (short quantity, non-conforming product) must be formalised in a reservation or dispute document sent to the supplier.
Structure grouping several entities to pool purchases and increase negotiating power.
A purchasing cooperative (or group buying structure) is an organisation (often a GIE or association) that pools purchases from several member companies to increase volumes and thus obtain better supplier terms (price, lead time, quality). In Africa, purchasing cooperatives are growing in distribution, health (medicines), agriculture and hospitality. They allow SMEs to access conditions reserved for large companies. Managing a purchasing cooperative requires clear governance on order allocation and billing between members.
Document precisely defining the technical, functional and quality requirements of a purchase.
The specification (or statement of work) is the reference document that precisely describes what the buyer expects from a supplier regarding products or services: technical specifications, required performance, applicable standards, installation or delivery constraints, acceptance procedures, service levels and quality criteria. A well-written specification is the basis of rigorous supplier consultation (RFP, tender) and allows bids to be evaluated on objective criteria. It also serves as the reference for contract management and dispute resolution.
One-off purchase made outside a framework contract, typically for an urgent or exceptional need.
A spot purchase is an unplanned purchase made outside negotiated framework contracts and catalogues, typically to meet an urgent or one-off need. Spot purchases generally carry a cost premium compared to contracted purchases as they lack negotiated terms. They are also harder to control (fraud risk, unverified quality). A good procurement policy aims to reduce spot purchases in favour of contracted or catalogue purchases, while maintaining a fast-track for genuinely urgent needs.
Structured discussion process with suppliers to obtain the best commercial terms.
Procurement negotiation is a core skill for any professional buyer. It aims to obtain the best conditions (price, lead time, quality, warranties, penalties) in a win-win relationship with suppliers. Key techniques include: preparation (value analysis, market knowledge, BATNA alternatives), anchoring (advantageous first offer), planned concessions, and multi-issue negotiation (not focusing on price alone). In Africa, negotiation often includes a strong relational dimension, with contract terms sometimes adjusted over time.
Preliminary document resembling an invoice but not payable, used to trigger a payment or customs procedure.
A proforma invoice is a commercial document issued by a seller before final sale confirmation. It states products, quantities, prices and sale conditions but is not a payable invoice. It is used to: allow the buyer to obtain an internal purchase order or payment authorisation, initiate a letter of credit opening, or allow provisional customs clearance of goods. African banks use it as the base document for import international wire transfers.
Visual steering tool summarising the key performance indicators of the procurement function.
A procurement dashboard is a steering tool that presents the key performance indicators of the procurement function in a concise visual format: total spend by period, achieved savings, contract coverage rate, number of open orders, average PR processing time, invoice dispute rate, and supplier performance (OTIF). It allows CPOs and CFOs to make informed decisions in real time. In Procura, the procurement dashboard is natively integrated with interactive charts.
Process of monitoring, renewing and ensuring compliance of commercial contracts with suppliers.
Supplier contract management covers the entire contract lifecycle: drafting and negotiation, signing, secure storage, obligation and SLA monitoring, deadline alerts, renewal or termination. A poorly managed contract can expose the company to penalties, unwanted automatic renewals, or lack of recourse in supplier disputes. CLM (Contract Lifecycle Management) systems automate these processes. In the OHADA zone, commercial contracts must comply with the AUDCG and national commercial codes.
Set of rules and procedures defining how an organisation conducts its purchases.
The procurement policy is the governance document that frames all purchasing activities of an organisation. It defines: approval thresholds by level (requester, department head, CFO, CEO), competitive tendering rules by amount, referenced and non-referenced supplier categories, emergency procedures, ethical rules (gifts, conflicts of interest), and reporting obligations. A well-written procurement policy is the basis of effective internal control and anti-corruption compliance. It must be approved by senior management and communicated to all employees.
Integrated flows of goods, information and payments from suppliers to end customers.
The supply chain in Africa has important specificities: fragmented logistics infrastructure, port bottlenecks (Port of Abidjan, Lagos, Mombasa, Durban), varying customs along corridors, dependence on imports for equipment and raw materials, and development of shared warehousing. The African Union Trade Facilitation Programme and Regional Corridors (Abidjan-Lagos, Northern Corridor, Trans-Kalahari) aim to reduce logistics costs. African SMEs must plan for longer delivery times (4-8 weeks from Asia) and higher safety stocks.
Two main modes of international goods transport, with different cost-time trade-offs.
Air freight is fast (1-7 days) but expensive (5-10 times the sea rate per kg). It suits urgent, high-value or perishable goods. Sea freight is slow (15-35 days from Asia to Africa) but cheaper for large volumes. Maritime container types include: FCL (Full Container Load) and LCL (Less than Container Load, groupage). In Africa, main shipping lines serving African ports are: MSC, Maersk, CMA CGM, Evergreen. Freight costs have fluctuated significantly since 2020.
Real-time monitoring of a shipment's progress from supplier to recipient.
Delivery tracking allows the buyer to know the status of a shipment at any time. In sea freight, shipping lines and freight forwarders provide tracking tools via Bill of Lading number. In air freight, the AWB (Air Waybill) number enables tracking. For local road transport in Africa, GPS tracking solutions are growing (embedded systems, mobile apps). Effective tracking enables delay detection, proactive stock management and supplier claims when issues arise.
E-commerce platforms facilitating transactions between African businesses.
B2B e-commerce in Africa is growing rapidly with specialised platforms: Jumia Business (office supplies), TradeKey Africa (import/export), Sokowatch/Wasoko (FMCG distribution), MarketForce (rural sales agents), and sector-specific agriculture platforms (Twiga Foods, Apollo Agriculture). These platforms digitise orders, invoicing and payments between wholesalers, distributors and retailers, reducing inefficiencies in traditional distribution chains. Mobile Money payment is often the preferred mode.
Mechanisms enabling African SMEs to respond to public tenders.
SME access to African public procurement is a major economic development challenge. Obstacles exist: high bond requirements, long state payment terms, heavy documentation requirements and preference for large companies. Reforms are underway: in Senegal and Burkina Faso, quotas reserve a share of contracts for domestic SMEs. The AfDB encourages simplified procedures for small contracts. SMEs can also access public contracts through business groupings (consortia), reducing individual requirements.
Set of risks linked to supplier dependency: supply disruption, insolvency, quality, fraud.
Supplier Risk Management identifies and mitigates risks associated with suppliers: supply disruption risk (single supplier, natural disasters), financial risk (supplier insolvency), quality risk (repeated non-conformities), compliance risk (fraud, corruption, human rights), and geopolitical risk (sanctions, political instability). In Africa, specific risks include: power outages affecting production, customs risks, and financial fragility of SME suppliers. The criticality matrix (impact × probability) allows prioritising mitigation actions.
Formal validation process for expenditure requests according to defined authority levels.
The budget approval circuit defines who can authorise what expenditure amounts in an organisation. It is organised in authority levels (Delegation of Authority or DoA): requester (creating the request), department head (operational validation), CFO (budget control), CEO (final approval for large amounts). Value thresholds determine the required approval level. This circuit is fundamental for internal control and anti-fraud compliance. In Procura, the approval circuit is configurable by policy, expense type and amount.
Integrated management systems hosted in the cloud, available by subscription for African companies.
Cloud ERPs (Enterprise Resource Planning) are management systems integrating all company functions: accounting, procurement, sales, inventory, HR and production. Unlike on-premise ERPs (installed on local servers), cloud ERPs are accessible via internet subscription without initial hardware investment. In Africa, main cloud ERPs used are: SAP S/4HANA Cloud, Oracle NetSuite, Microsoft Dynamics 365, Sage Business Cloud, Odoo (open source), ERPNext. African SMEs prefer modular solutions accessible on mobile due to variable connectivity.
The ISO 20022 format for euro credit-transfer orders deposited with European banks.
The SEPA transfer executes euro payments within the single payments area. Batched orders are transmitted to banks in the ISO 20022 pain.001 format: a header (ordering party, execution date) and transactions carrying IBAN, BIC, amount and label. The SEPA service level only applies to all-euro batches. File quality depends on vendor data: check-digit-validated IBAN, structurally correct BIC, labels without forbidden characters.
Electronic funds transfer in Payments Canada's standard 005 for paying suppliers.
EFT (electronic funds transfer) is the Canadian rail for batched supplier payments. The file follows Payments Canada's standard 005: fixed-length records with an A header, C credit details (amount in cents, date, 3-digit institution, 5-digit transit, 7-12 digit account, names) and a Z control-total record. Banks (RBC, TD, BMO, Desjardins) accept it through their business portals. Quality rests on validating the institution-transit-account triplet on the vendor record.
Accounting framework applicable across OHADA member states.
SYSCOHADA (Système Comptable OHADA) is the accounting framework of the 17 OHADA member states. It defines the general chart of accounts, valuation rules, summary financial statements (balance sheet, P&L, cash flow statement, notes) and recording methods. The major revision effective 1 January 2018 (SYSCOHADA Révisé) brought the framework closer to IFRS on several points.
Codified list of accounts used by businesses in the OHADA zone.
The OHADA general chart of accounts organises accounts into 9 classes: 1 (equity), 2 (fixed assets), 3 (inventories), 4 (third parties, including vendors in 401 and customers in 411), 5 (cash), 6 (expenses), 7 (revenues), 8 (other), 9 (cost accounting). The structure keeps the accounting language interoperable across the 17 member states.
Sources and Uses of Funds Statement, the SYSCOHADA equivalent of the cash-flow statement.
The TAFIRE is one of the summary financial statements required under SYSCOHADA. It traces internal sources (operating cash flow, asset sales) and external sources (capital increases, borrowings) along with their uses (investments, debt repayment, distributions). Presented annually, it complements the balance sheet and P&L.
Overview of African currencies and management challenges for continental SMEs.
Africa has approximately fifty national currencies. The main ones by economic zone: CFA (UEMOA CFA Franc — 8 countries including Ivory Coast, Senegal, Benin, Togo, Mali, Burkina Faso, Niger, Guinea-Bissau, issued by BCEAO); XAF (CEMAC CFA Franc — 6 countries including Cameroon, Gabon, Congo, Chad, CAR, Equatorial Guinea, issued by BEAC); NGN (Nigerian Naira, Central Bank of Nigeria); KES (Kenyan Shilling, Central Bank of Kenya); ZAR (South African Rand, South African Reserve Bank); GHS (Ghanaian Cedi, Bank of Ghana); EGP (Egyptian Pound, Central Bank of Egypt); MAD (Moroccan Dirham, Bank Al-Maghrib). For SMEs operating across multiple African countries, multi-currency management involves: functional currency accounting, conversion at the exchange rate on the transaction date (SYSCOHADA and IFRS standards), foreign exchange risk, and currency restrictions in some countries (Nigeria, Algeria foreign exchange controls).
Accounting record of the company's debts to its vendors.
Accounts Payable (AP) encompasses all short-term debts of the company to its vendors, resulting from received goods or services not yet paid. In the revised SYSCOHADA chart of accounts, they appear in Class 4 (third-party accounts), account 401 'Suppliers' for current goods and services purchases. AP management includes: invoice recording, matching with purchase orders and goods receipt (three-way matching), validation, payment scheduling and settlement. The DPO (Days Payable Outstanding) metric measures average vendor payment time. Well-managed AP prevents duplicate payments, delays (which generate penalties) and vendor disputes.
Management of cash flows to ensure operational solvency.
Corporate treasury (cash management) refers to the management of available liquidity to cover short-term obligations: vendor payments, salaries, social charges, taxes. It covers: cash flow forecasting (cash budget), working capital optimisation (WCR), AP management, AR management, and investment of surpluses. In the OHADA zone, BCEAO regulations govern international transfers and investments. For an African SME, cash challenges are amplified by long customer payment terms (public procurement), difficulty accessing bank credit, and currency volatility (NGN, KES, ZAR). Digital P2P improves treasury by shortening the AP cycle (faster validation = on-time payment = no penalties).
Budget envelope allocated to procurement spend by category and period.
The procurement budget is the annual (sometimes quarterly) projection of purchasing expenditure by category (operating, investment, sub-contracting, etc.) and by department. It is established at the beginning of the fiscal year in collaboration between the CFO, operational directors and the procurement manager. Its role: authorise expenditure (any purchase beyond budget requires exceptional approval), enable in-year budget monitoring (actual vs budget variance), and track procurement savings achieved. In Procura, each PO is checked against the available budget of the relevant category before approval. Overrun alerts are sent in real time to the CFO and procurement manager.
Reservation of a budget envelope at the time of PO issue.
Budget commitment (encumbrance accounting) reserves the available budget the moment a PO is approved, before the invoice arrives. This practice prevents surprise overspend and gives the CFO real-time visibility on future commitments. At invoice posting, the commitment converts to actual spend. Standard in the public sector and increasingly in the private sector.
Assignment of trade receivables to a factor in exchange for immediate financing.
Factoring is a financing technique whereby a business assigns its trade receivables to a specialised institution (the factor), which immediately advances cash. The factor then handles collection. Factoring is particularly useful for African SMEs facing long payment terms (60-90 days) from large companies or government entities.
Assignment of a trade bill to a bank in exchange for funds before maturity.
Trade discounting is the operation whereby a company remits an unmatured trade bill (draft, promissory note) to its bank in exchange for an advance of funds. The bank deducts interest (charges) for the remaining time to maturity. It is a short-term cash credit widely used in OHADA countries and the Maghreb. Different from factoring: discounting covers a single instrument, factoring covers a portfolio of receivables.
Lease-to-own contract enabling asset financing without immediate capital outlay.
A finance lease (leasing) is a contract whereby a lessor (leasing company) makes an asset (equipment, vehicle, real estate) available to a lessee who pays periodic rentals and has a purchase option at the end. Unlike outright purchase, there is no large upfront outlay. Under SYSCOHADA (aligned with IFRS 16), finance lease contracts are recorded on the lessee's balance sheet. Across Africa, leasing is an important channel for SME equipment financing.
Long-lived assets recorded on the balance sheet and depreciated over their useful life.
Fixed assets are the non-current assets of a company intended for lasting use in its operations. Under SYSCOHADA Revised 2018, they are divided into: intangible assets (patents, software, goodwill), tangible assets (land, buildings, equipment and tools, furniture) and financial assets (equity investments, loans). They are recorded at acquisition cost and are depreciated (and possibly impaired). The SYSCOHADA chart of accounts classifies them in class 2.
Accounting recognition of the progressive decrease in value of a fixed asset over its useful life.
Depreciation is the allocation of an asset's cost over its estimated useful life. Under SYSCOHADA, accepted methods are: straight-line (equal annual charge) and declining balance (decreasing annual charges). Useful life is estimated by asset category: 20-50 years for buildings, 5-10 years for IT equipment, 3-5 years for software. Depreciation charges are recorded as a credit to accumulated depreciation accounts (28xx) and a debit to expenses (681). Tax depreciation may differ from accounting depreciation.
Periodic verification that the accounting cash balance matches the bank statement.
Bank reconciliation is an essential cash control that compares, at a given date, the bank account balance per the accounting books with the balance shown on the bank statement. Differences are explained by: issued cheques not yet presented to the bank, received transfers not yet recorded, bank charges (fees, interest) and any errors. Under SYSCOHADA, bank reconciliation is a recommended internal control procedure to perform monthly.
Annual financial statement presenting an entity's assets, liabilities and equity at a given date.
The balance sheet is one of the mandatory annual financial statements under SYSCOHADA (alongside the income statement, TAFIRE and notes). It presents at the closing date: assets (uses) = fixed assets + current assets (inventories, receivables) + cash; liabilities (sources) = equity + financial debt + current liabilities (trade payables, tax liabilities). Assets must always equal liabilities. Under SYSCOHADA, the balance sheet is presented at gross value less depreciation and provisions.
Charges certain in principle whose amount or due date is not yet known at year-end.
Accrued expenses are certain debts corresponding to services received or goods delivered for which the invoice has not yet been received or posted at the closing date. Examples: outstanding service invoices, accrued interest on loans, untaken paid leave. Under SYSCOHADA, they appear in current liabilities under accrual accounts (47x). They ensure compliance with the matching principle, attaching expenses to the period to which they relate.
Issues and risks from African currency fluctuations for importing and exporting companies.
Exchange rate management is a major challenge for African companies because most raw materials and equipment are invoiced in USD or EUR. Countries in the UEMOA and CEMAC zones benefit from a fixed exchange rate with the euro (CFA and XAF = 655.957 CFA francs per euro), eliminating intra-zone currency risk. Outside the CFA zone, fluctuations can be significant: Nigerian naira, Ghanaian cedi, Kenyan shilling, South African rand. Exposed companies can hedge via forward contracts, currency options or invoicing in hard currencies.
Value added tax paid on purchases and recoverable on the VAT return.
Deductible VAT (or input VAT) is the VAT a company has paid to its suppliers on acquisitions of goods and services used in its taxable business activity. It is deducted from collected VAT (output VAT) to remit only the net difference to the state. If input VAT exceeds output VAT, the company has a recoverable or imputable VAT credit. Under SYSCOHADA, deductible VAT is recorded in account 4456.
Difference between a company's liquid assets and its short-term financial liabilities.
Net cash position is the financial indicator measuring a company's immediate liquidity. It is calculated as: Active cash (petty cash + bank balances + short-term investments) - Passive cash (bank overdrafts + short-term commercial paper). A positive net cash position indicates the company has sufficient liquidity. A negative position (dependence on bank credit lines) is a risk signal. Under SYSCOHADA, net cash is part of the Cash Flow Statement (TFT) and the TAFIRE.
Annual financial planning document detailing revenue and expenditure targets.
The budget is the central financial steering tool. It translates strategic objectives into projected figures for a fiscal year: projected revenue, cost of goods sold, operating expenses (personnel, purchases, rent, overheads), investments, and projected profit. It serves as the reference for budget control (actual vs budget variance tracking) and decision-making. Within procure-to-pay, purchase requisitions are validated against the budget before PO issuance.
Inflows and outflows of cash in a company over a given period.
Cash flow measures the actual movements of liquid funds in a company. Three types are distinguished: operating cash flow (generated by core activity), investing cash flow (asset purchases and disposals), and financing cash flow (borrowings, repayments, dividends). Free cash flow = operating cash flow - capital expenditures. It is the preferred investor indicator as it reflects the company's ability to generate liquidity regardless of its financing structure.
Formal double-entry bookkeeping records of each financial transaction.
Journal entries (or accounting entries) are the formal records of each financial transaction in the double-entry bookkeeping system. Each entry affects at least two accounts (debit = resource entry or use; credit = resource exit or financing source) and respects the debit = credit equality principle. Under SYSCOHADA, entries are organised by journal: purchases journal, sales journal, bank journal, cash journal and miscellaneous operations journal (OD). They form the basic record for accounting audit.
Document issued by a supplier reducing the amount of an existing invoice due to a return, discount or error.
A credit note (or supplier credit) is a commercial document issued by a supplier to partially or fully cancel a previous invoice. It is issued for: return of defective or non-conforming goods, invoicing error (wrong price, wrong quantity), commercial discount granted after invoicing, or early payment discount. Under SYSCOHADA accounting, the credit note is recorded as a deduction from the purchase account (account 60x credit) or the supplier account (401 debit). It must reference the original invoice.
Accrual to cover a probable risk or loss whose amount is uncertain.
A provision is a liability of uncertain timing or amount. Under SYSCOHADA and IAS 37, a provision must be recognised when: (1) there is a present obligation arising from a past event, (2) it is probable that an outflow of resources will be required to settle the obligation, and (3) a reliable estimate can be made. Examples: provisions for supplier disputes, provisions for doubtful receivables, provisions for personnel costs (untaken leave, year-end bonuses). Provisions reduce the period's profit and appear as liabilities on the balance sheet.
Preparation of financial statements combining accounts of a parent company and its subsidiaries as if the group were a single entity.
Consolidated accounting consists of preparing consolidated financial statements for a group of companies. It eliminates intra-group transactions (inter-subsidiary sales, internal dividends, reciprocal receivables) to give a true picture of the group's financial position vis-à-vis third parties. Consolidation methods are: full consolidation (subsidiaries controlled at > 50%), proportional consolidation (joint ventures), and equity method (20-50% significant holdings). In Africa, regional groups (Ecobank, SIFCA, Dangote, etc.) publish consolidated accounts under IFRS or SYSCOHADA.
Independent verification of annual financial statements by a certified third-party auditor.
External audit is the financial statement certification mission performed by an independent auditor (commissaire aux comptes under OHADA law or certified public accountant). It aims to provide reasonable assurance that the accounts give a true and fair view of the entity's financial position. In the OHADA zone, SAs and SARLs exceeding certain thresholds (revenue, headcount or total assets by country) are mandatorily subject to statutory audit. The external auditor issues one of four opinions: unqualified (clean), qualified, adverse, or disclaimer of opinion.
Function aimed at measuring and steering the financial and operational performance of an organisation.
Management control is the performance steering function of an organisation. It produces analyses comparing actuals against budgetary targets, identifies variances and their causes, and provides management with the information needed for decision-making. Its main tools are: management dashboard, monthly budget monitoring, analytical accounting (costs by activity/product), management reports and rolling forecasts (reforecast). In Africa, management control is rapidly developing in SMEs as they grow and attract investors.
Transition from manual accounting processes to digital tools to improve efficiency and compliance.
Accounting digitalisation in Africa is accelerating due to electronic tax obligations (DGI, FIRS, KRA, SARS), availability of cloud software accessible on mobile, and investor requirements. Benefits include: reduced closing cycle (from 45 days to 5 days), automatic VAT compliance, automated bank reconciliation, and real-time reporting. Solutions like Sage, QuickBooks, CEGID Africa, EBP Afrique, and Comptia (Procura module) are adapted to SYSCOHADA realities. Training accountants in digital tools is a key challenge in the OHADA zone.
Measurement of an SME's financial health and profitability via key indicators.
Evaluating an African SME's financial performance relies on several indicators: revenue and growth rate, gross margin (revenue - cost of goods sold), EBITDA (earnings before interest, taxes, depreciation and amortisation), WCR (Working Capital Requirement), net cash position, debt ratio (debt / equity), and average debtor days (DSO). African investors and banks use these indicators for financing decisions. SYSCOHADA provides the accounting framework to produce these indicators.
Amounts owed to the company by its customers for goods or services delivered but not yet paid.
Accounts receivable represent the amounts customers owe to a company following credit sales. They appear as current assets on the balance sheet. Accounts receivable management includes: granting payment terms, collections monitoring, dunning (amicable and contentious), provision for doubtful accounts, and possibly factoring. Under SYSCOHADA, trade receivables are recorded in class 4 (accounts 411-416). DSO (Days Sales Outstanding or average collection period) is the key performance indicator for accounts receivable.
African financial markets where shares, bonds and long-term financial instruments are traded.
The main African capital markets are: JSE (Johannesburg Stock Exchange, South Africa — Africa's largest exchange), NSE (Nairobi Securities Exchange, Kenya), NGX (Nigerian Exchange Group), BRVM (Regional Securities Exchange, UEMOA zone — 8 countries), GSE (Ghana Stock Exchange), EGX (Egyptian Exchange). These markets allow companies to raise funds via IPOs or bond issuances. African capital markets remain shallow but are developing with development bank support (AfDB, World Bank).
Set of daily operations aimed at optimising cash inflow and outflow.
Daily cash management (operational treasury) covers: monitoring bank balances each morning, forecasting the week's inflows and outflows, arbitrating between different bank accounts, placing short-term cash surpluses, and managing bank credit facilities (credit lines, overdrafts). In Africa, treasurers face specific challenges: multiple accounts in different currencies, variable value dates by bank, and foreign exchange risks for importers. Cash pooling tools are developing for regional groups.
The French accounting framework: 8 account classes, from balance sheet to income statement, required of every company keeping accounts in France.
The Plan Comptable Général is the framework that standardises accounting for French companies. Set by Autorité des normes comptables (ANC) regulation 2014-03, it organises accounts into eight classes. Classes 1 to 5 form the balance sheet: 1 equity, 2 fixed assets, 3 inventory and work in progress, 4 third parties (including 401 suppliers and 4456 deductible VAT), 5 financial. Classes 6 and 7 form the income statement: 6 expenses (including 607 goods purchased and 606 non-stored purchases), 7 income. Class 8 holds special accounts. In a procurement cycle the chain is direct: a supplier invoice credits 401 and debits a class 6 expense account plus deductible VAT in 4456; payment clears 401 against a class 5 account. Comparison with SYSCOHADA, used across the OHADA zone, is common: both share the class logic but differ in numbering and reporting obligations.
Credits (GST) and refunds (QST) of the tax paid on business purchases.
The input tax credit (ITC) recovers GST paid on purchases used in commercial activities; the input tax refund (ITR) is its QST equivalent. Both are claimed on the return (lines 108 and 208 of the FPZ-500) and require compliant documents: an invoice in the business name carrying the supplier's registration numbers. Some expenses are restricted (meals and entertainment generally at 50 percent, passenger vehicles capped). In accounting, ITCs and ITRs accumulate in dedicated asset accounts until filing.
Canadian accounting standards for private enterprises (Part II of the CPA Canada Handbook).
Accounting Standards for Private Enterprises (ASPE, NCECF in French) are the accounting framework of most unlisted Canadian SMEs: Part II of the CPA Canada Handbook. Simpler than IFRS, they cover financial statement presentation and the recognition of assets, liabilities, revenue and expenses. A typical North American ASPE chart organizes accounts into assets (1xxx), liabilities (2xxx), equity (3xxx), revenue (4xxx) and expenses (5xxx onward), with, in Québec, dedicated tax accounts: GST and QST payable, ITCs and ITRs receivable.
National Social Security Fund, social security body of Bénin, Cameroon and other countries.
The CNSS collects social contributions on salaries and funds retirement, sickness, work-injury and family benefits. Rates and ceilings vary by country. In Bénin, the employer declares and remits contributions monthly to the CNSS through official forms. An undeclared employee exposes the employer to a tax reassessment.
National Social Security Fund, Côte d'Ivoire's social security body.
Côte d'Ivoire's CNPS collects social contributions (employer and employee) and funds retirement, work-injury, maternity and family benefits. Monthly returns flow through the e-CNPS platform. Failure to declare or remit exposes the employer to penalties defined in Ivorian social security law.
Senegal's national pension institution.
IPRES manages pay-as-you-go retirement in Senegal. Contributions are deducted on gross salaries (employer and employee shares). In Senegal, social security (sickness, family) is managed separately by the Caisse de Sécurité Sociale (CSS). Companies file IPRES and CSS separately, each on its own schedule.
Personal income tax, tax on net salary in several OHADA countries.
The IRPP is withheld at source by the employer on the employee's taxable net salary. The scale is progressive and set by each country's annual finance law (Bénin, Côte d'Ivoire, Senegal, Cameroon, Togo, etc.). The calculation accounts for allowances, family quotients and specific deductions. Declaration and remittance are monthly.
Progressive tax withheld at source on salaries, in Burkina Faso and Togo.
The Impôt Unique sur les Traitements et Salaires is the tax on employment income withheld at source from employees' pay, under that name, in Burkina Faso and Togo. Its features: a progressive bracket scale, family allowances, withheld by the employer and remitted monthly to the tax authority. Neighbouring countries call the same mechanism something else: in Ivory Coast, personal income tax (IRPP) on salaries; in Bénin, the Impôt sur les Traitements et Salaires (ITS) under article 119 of the tax code, with five brackets from 0% below 60,000 FCFA a month to 30% above 500,000 FCFA, withheld by the employer and remitted before the 10th of the following month; in anglophone Africa, PAYE (Pay As You Earn). Rates and thresholds are set each year by the relevant country's finance law.
Agreement binding an employee and employer under applicable national labour law.
Employment contracts in Africa are governed by the national labour code of each state. In the OHADA zone, each country maintains its own labour legislation (not harmonised by OHADA). Main types are: fixed-term contract (CDD), time-limited with strict renewal rules; open-ended contract (CDI), which is the norm; and internship or apprenticeship contracts. The contract must specify remuneration, working hours, place of work, and termination conditions.
Minimum remuneration set by each state to protect workers.
The minimum wage is set by each African state via its labour code or periodic decrees. In the UEMOA/ECOWAS zone, it is called SMIG (Salaire Minimum Interprofessionnel Garanti). In Benin the SMIG is set by ministerial order (Ministry of Labour). In Côte d'Ivoire it is reviewed by tripartite agreement (government, employers, unions). In South Africa the National Minimum Wage Act is reviewed annually. SMEs must ensure all remuneration, including contractors, exceeds the applicable legal floor.
Statutory compensation paid to an employee when an open-ended contract is terminated by the employer.
Severance pay is calculated under the national labour code, generally based on seniority and average gross salary. In most French-speaking African countries (Côte d'Ivoire, Benin, Senegal, Mali), the standard formula is: n months of salary × a coefficient per seniority bracket. Wrongful dismissal (without genuine and serious cause) can result in higher damages set by the labour tribunal.
Payroll levies funding social benefits (pension, health, accidents).
Mandatory social security contributions vary by African country and its social protection body: CNSS (Benin, Togo, Niger, DRC), CNPS (Côte d'Ivoire, Cameroon), IPRES/CSS (Senegal), CNRA/FSSF (Gabon), NSSF (Kenya, Uganda), NSITF/NHF (Nigeria), UIF/COIDA (South Africa). They generally cover three branches: old age/pension, work accidents/occupational diseases, and family benefits. Employer and employee rates differ by country and branch.
Monthly document provided to the employee detailing gross pay, deductions and net pay.
The pay slip is the official document that the employer must provide to each employee when paying their remuneration. It must state: employer and employee details, collective agreement classification, pay period, gross salary, employee and employer social security contributions, tax deductions (IUTS in French-speaking Africa or PAYE in English-speaking Africa), benefits in kind, and net pay. The employer must retain copies for 5-10 years depending on the country.
Supplementary scheme alongside mandatory pension systems allowing employees and employers to build retirement savings.
Supplementary retirement savings plans are growing in Africa, alongside mandatory schemes (CNSS, CNPS, NSSF, etc.). In South Africa, provident and pension funds are widespread and supervised by the FSCA. In Kenya, the Retirement Benefits Authority (RBA) supervises company pension funds. In French-speaking Africa, individual retirement savings products are offered by insurance companies (life insurance, capitalisation funds). The IFC and World Bank encourage pension fund market development to finance African infrastructure.
Certified Electronic Invoicing Machine, Bénin's electronic invoice system.
MeCEF is the mandatory electronic invoicing scheme set up by Bénin's Tax Authority (DGI) to secure VAT collection. Every issued invoice is transmitted to the tax server, certified, and carries a verifiable unique identifier. Merchants cannot issue invoices outside this loop. Software publishers must implement the MeCEF protocol.
Standardised Electronic Invoice, Côte d'Ivoire's electronic invoice system.
The Standardised Electronic Invoice (FNE) is the electronic invoicing scheme set up by Côte d'Ivoire's Tax Authority. Every issued invoice is sent to the tax platform, secured by a digital fiscal sticker, and carries a verification QR code. Revenue thresholds triggering FNE compliance are defined by the Ivorian DGI.
Mobile-phone-based payment and transfer service, an alternative to bank accounts.
Mobile Money allows sending, receiving and storing value without a traditional bank account. In West and Central Africa, the main operators are MTN MoMo, Orange Money, Wave and Moov Money. The ecosystem is regulated by regional central banks (BCEAO for UEMOA, BEAC for CEMAC) and national licences. For businesses, Mobile Money supports vendor payouts, day-worker payroll and reimbursements.
Value Added Tax: rates and mechanics across major African economies.
VAT is collected in virtually all African countries. Common rates: 18% in Ivory Coast, Senegal and Cameroon (OHADA); 7.5% in Nigeria (FIRS); 16% in Kenya (KRA); 15% in South Africa (SARS); 12.5% in Ghana (GRA). The mechanism is identical everywhere: output VAT collected on sales is remitted to the state, input VAT paid on purchases is deductible subject to conditions (compliant invoice, goods used for taxable activity). Certified e-invoicing (FNE, MeCEF, eTIMS Kenya, e-Invoice Nigeria) is increasingly required to validate deductibility.
Invoice digitalisation mandates across major African economies.
Mandatory electronic invoicing is rolling out across the continent. Active systems: FNE in Ivory Coast (DGI CI), MeCEF in Benin (DGI Benin), eTIMS (Electronic Tax Invoice Management System) in Kenya via the KRA, Smart Invoice in Zambia via ZRA, e-Invoice in Nigeria via FIRS (mandatory for large enterprises since 2023). The common principle: the invoice is sent in real time to the tax authority which signs it cryptographically; only a certified invoice is legally enforceable and tax-deductible. For SMEs, the challenge is connecting their procurement software to the administration's system to automate certification.
Regulatory framework for government and public-entity procurement in Africa.
Public procurement accounts for an average 15-20% of GDP in sub-Saharan Africa according to the World Bank. Most African states have a public procurement code imposing open tendering above a threshold, notice publication, submission timelines, and transparent evaluation criteria. At the continental level, the African Union adopted African Public Procurement Guidelines in 2011. SMEs supplying the state must master: qualification files, bid bonds and performance bonds, legal payment deadlines (90 days maximum in most national codes), and remedies in case of contested award.
Independent function that evaluates and improves the effectiveness of internal controls.
According to the Institute of Internal Auditors (IIA), internal audit is "an independent, objective assurance and consulting activity designed to add value and improve an organization's operations". In the African context, procurement internal audit covers: process compliance (PR → PO → receipt → payment), vendor compliance (KYC, RCCM, valid IFU/NIF), fraud prevention (duplicate invoices, fictitious vendors), and tax compliance (VAT, withholding tax). The reference international standards are the IIA International Standards for the Professional Practice of Internal Auditing (IPPF), applicable in any country.
Set of processes put in place to manage operational and financial risks.
Internal control refers to all the mechanisms put in place by an organization to ensure that operations are conducted in line with set objectives, risks are identified and managed, and financial information is reliable. The most widely used global framework is the COSO (Committee of Sponsoring Organizations) Internal Control Integrated Framework (2013), which distinguishes five components: control environment, risk assessment, control activities, information and communication, monitoring. In procurement, internal control specifically covers: segregation of duties (requester / approver / accountant / payer), signature delegations, competitive bidding rules, vendor payment controls.
Misconduct in the procurement cycle: fictitious vendors, duplicates, overbilling.
According to the ACFE (Association of Certified Fraud Examiners, Report to the Nations 2024), organisations lose a median 5% of annual revenue to fraud. Procurement frauds are among the most frequent: (1) fictitious vendors — creating a non-existent vendor and paying fake invoices; (2) duplicate invoices — the same invoice submitted twice or for two different amounts; (3) overbilling — inflated prices through vendor collusion; (4) asset misappropriation — goods ordered but never received or diverted. In Africa, the ACFE notes that both the private and public sectors are exposed, with a median fraud duration of 12 months before detection. Prevention relies on: segregation of duties, automated three-way matching, rigorous vendor KYC, and AI anomaly detection.
Free trade agreement covering 54 African countries, in force since January 2021.
The African Continental Free Trade Area (AfCFTA) is a trade agreement adopted by the African Union and signed in March 2018 in Kigali. It entered into force on 30 May 2019 after ratification, and AfCFTA trading officially commenced in January 2021. The agreement aims to: eliminate tariffs on 90% of goods between member states, liberalise trade in services, and eventually create a single African market. For African SMEs, the AfCFTA progressively reduces intra-African import costs and opens new sales markets. Cross-African procurement (equipment from one country, raw materials from another) will benefit from tariff reduction. However, implementation remains gradual and rules of origin must be respected to benefit from tariff preferences.
Kenya Revenue Authority and its mandatory electronic invoicing system.
The Kenya Revenue Authority (KRA) is Kenya's tax administration, responsible for collecting direct and indirect taxes including VAT (standard rate 16%). eTIMS (Electronic Tax Invoice Management System) is the mandatory electronic invoicing system deployed by the KRA. Any VAT-registered business in Kenya must issue invoices via eTIMS; the system generates a Control Unit Invoice Number (CUIN) which validates the invoice. Purchases made from vendors not using eTIMS are not deductible for VAT. The KRA has also deployed i-Tax, its online portal for tax filings. For Kenyan SMEs, integration of procurement software with eTIMS is now a compliance prerequisite.
Federal Inland Revenue Service — Nigeria's federal tax authority.
The Federal Inland Revenue Service (FIRS) is Nigeria's federal tax authority, responsible for collecting corporate income tax (Companies Income Tax, CIT: 30% for large companies, 20% for SMEs with turnover between NGN 25-100 million, 0% for micro-enterprises below NGN 25 million per the Finance Act 2020), VAT (7.5% since 2020, Finance Act 2019), and other federal taxes. The FIRS launched an e-Invoice programme now mandatory for large enterprises. The tax number assigned by FIRS is the Tax Identification Number (TIN), the Nigerian equivalent of the IFU/NIF. For any SME operating in Nigeria or with Nigerian vendors, the TIN is an essential KYC element.
South African Revenue Service — South Africa's tax authority (VAT 15%).
The South African Revenue Service (SARS) is the tax authority of the Republic of South Africa. It collects corporate income tax (27% since 2022), VAT (15%), customs and excise duties. The tax number assigned by SARS is the Tax Reference Number (TRN). VAT-registered businesses receive a separate VAT Registration Number. SARS requires compliant invoicing: every tax invoice must state the seller's VAT Registration Number, goods/services description, net amount and VAT separately. eFiling is the mandatory online portal for returns. For SMEs with South African vendors, verifying the VAT Registration Number via the SARS portal is the baseline KYC step.
Ghana's tax authority — VAT 12.5%, E-VAT since 2022.
The Ghana Revenue Authority (GRA) is Ghana's tax authority, responsible for corporate tax (25%), VAT (12.5% + 2.5% National Health Insurance Levy + 1% Ghana Education Trust Fund Levy, totalling 16.5% under the standard scheme) and customs duties. The GRA deployed E-VAT, a mandatory certified electronic invoicing system for VAT-registered businesses since 2022. The tax number is the Ghanaian Tax Identification Number (TIN). For procurement from Ghanaian vendors, the TIN and GHIPSS (Ghana Interbank Payment and Settlement Systems) facilitate domestic bank transfers.
Uganda's tax authority — VAT 18%, EAC member.
The Uganda Revenue Authority (URA) is Uganda's tax authority, responsible for corporate tax (30%), VAT (18%), customs duties and excise. Uganda is a member of the East African Community (EAC) and applies the EAC Common External Tariff (CET) for imports from outside the EAC. The Ugandan tax number is the Taxpayer Identification Number (TIN). The URA introduced the Electronic Fiscal Receipting and Invoicing System (EFRIS), an electronic invoicing system similar to Kenya's eTIMS. For SMEs procuring goods in Uganda or with Ugandan vendors, the URA TIN is the reference KYC identifier.
Tanzania's tax authority — VAT 18%, Electronic Fiscal Devices (EFD).
The Tanzania Revenue Authority (TRA) is Tanzania's tax authority (including Zanzibar for federal taxes). It collects corporate tax (30%), VAT (18%), and EAC customs duties. The TRA mandates Electronic Fiscal Devices (EFD) for B2B transactions: invoices must be issued via a certified EFD that transmits data to the TRA in real time. The Tanzanian tax number is the TIN. For SMEs in East Africa, Tanzania is an important procurement market for agricultural raw materials (coffee, tea, sisal, gold), and TRA/EFD compliance is essential for VAT deduction.
Rwanda's tax authority — VAT 18%, Electronic Billing Machines (EBM).
The Rwanda Revenue Authority (RRA) is Rwanda's tax authority. It collects corporate tax (30% general rate, 15% for listed companies, 0% for companies in certain Special Economic Zones), VAT (18%), and EAC customs duties. Rwanda is recognised as one of Africa's most digitalised economies. The RRA mandates the Electronic Billing Machine (EBM), Rwanda's version of Tanzania's EFD or Kenya's eTIMS: every invoice must pass through an EBM to obtain a certification number. The Rwandan tax number is the TIN. With Kigali being the seat of the African Union and AfCFTA, the RRA is often cited as a model of African tax digitalisation.
Central bank issuing the CFA Franc XAF for the 6 CEMAC countries.
The Bank of Central African States (BEAC) is the joint central bank of the six countries of the Economic and Monetary Community of Central Africa (CEMAC): Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, Chad. It issues the CFA Franc XAF (ISO 4217 code: XAF), pegged to the euro at the fixed rate of 655.957 XAF per €1, under agreement with France. It defines the joint CEMAC monetary policy, regulates international capital transfers and manages foreign exchange reserves. For companies operating in the CEMAC zone, international transfers above certain thresholds must be declared to the BEAC through commercial banks.
Central bank issuing the CFA Franc CFA for the 8 UEMOA countries.
The Central Bank of West African States (BCEAO) is the joint central bank of the eight countries of the West African Economic and Monetary Union (UEMOA): Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, Togo. It issues the CFA Franc CFA (ISO 4217 code: CFA), pegged to the euro at the fixed rate of 655.957 CFA per €1. The BCEAO regulates mobile financial services (Mobile Money) in the UEMOA zone via a specific instruction on electronic money institutions. It also publishes monetary and financial statistics used for country risk analysis.
Economic integration zone grouping 7 East African countries.
The East African Community (EAC) is a regional integration organisation founded in 2000, grouping Burundi, Democratic Republic of Congo (since 2022), Kenya, Rwanda, Somalia (since 2023), South Sudan, Tanzania and Uganda. The EAC established a common market (free movement of goods, services, capital, people) and a Common External Tariff (CET) with three bands: 0% on raw materials, 10% on semi-finished goods, 25% on finished goods. Unlike UEMOA and CEMAC, the EAC has no single currency (national currencies — KES, TZS, UGX, RWF — coexist). Regional payment systems (M-Pesa, Pesalink) nevertheless facilitate intra-EAC transactions.
Digital document approval procedure with legal value in many African countries.
An electronic signature enables the approval of digital documents (contracts, purchase orders, approvals) with recognised legal value. Types: (1) simple electronic signature ("I approve" click with timestamped audit trail), (2) advanced electronic signature (identity verification by email/SMS), (3) qualified electronic signature (digital certificate from an accredited certification authority). In Africa: OHADA recognises electronic signatures in the Uniform Act on General Commercial Law (AUDCG, articles 13 ff.) since 2010. Kenya has the Information Communication Technology (ICT) Act recognising electronic signatures. Tunisia, Morocco and Egypt have specific legal frameworks. For POs and vendor contracts, electronic signatures reduce approval delays from several days (post + printing) to a few hours.
Zimbabwe Revenue Authority: Zimbabwe's tax and customs authority.
The Zimbabwe Revenue Authority (ZIMRA) is the government body responsible for collecting taxes and customs duties in Zimbabwe. It administers VAT, Corporate Tax, excise duties and customs duties. Companies operating in Zimbabwe must register with ZIMRA, submit periodic returns, and use approved electronic invoicing systems.
Mauritius Revenue Authority: tax authority of the Republic of Mauritius.
The Mauritius Revenue Authority (MRA) is the public body responsible for tax and customs administration in Mauritius. It manages income tax, VAT, customs duties and excise taxes. Mauritius is known for its attractive flat 15% tax rate on income and profits, and its extensive tax treaty network, making it a hub for sub-Saharan African investments.
Ethiopian Revenue and Customs Authority: Ethiopia's tax and customs administration.
The Ethiopian Revenue and Customs Authority (ERCA) is the federal Ethiopian authority responsible for collecting taxes and customs duties. Ethiopia applies a 15% VAT, a 30% corporate income tax, and withholding tax on supplier payments. ERCA has deployed an e-Tax electronic invoicing programme to improve compliance among large enterprises.
Morocco's General Directorate of Taxes: the national tax administration.
The Direction Générale des Impôts (DGI) is Morocco's tax authority under the Ministry of Finance. It administers Corporate Income Tax (IS), Personal Income Tax (IR), VAT, and the Professional Tax. The standard VAT rate is 20%. DGI has deployed the SIMPL platform for electronic filing and payment, making tax digitalisation mandatory for large enterprises.
Zambia Revenue Authority: Zambia's tax and customs authority.
The Zambia Revenue Authority (ZRA) is the government body responsible for collecting taxes, customs and excise duties. It administers VAT (16%), corporate income tax (30%), excise duties and customs duties. ZRA has deployed an electronic invoicing system (Smart Invoice System) for VAT-registered businesses, with mandatory real-time transmission.
Thorough verification of a supplier's legal, financial and ethical standing before contracting.
Supplier due diligence is the set of pre-contractual checks aimed at evaluating risks associated with entering into a relationship with a new supplier. It covers: verification of legal documents (commercial register, tax ID), financial solvency, commercial references, anti-corruption law compliance (FCPA, Sapin II, national laws), international sanctions screening (OFAC, EU), and ESG assessment (environmental, social, governance practices). In Africa, due diligence is reinforced by risks of document fraud and shell companies.
Integration of environmental, social and governance criteria into purchasing decisions.
Sustainable procurement involves integrating ESG (Environmental, Social, Governance) criteria into procurement strategy and processes, beyond the purely economic criterion. ISO 20400:2017 (Sustainable Procurement — Guidance) provides the international reference framework. In Africa, typical criteria include: use of local SMEs, local employment criteria, working conditions at subcontractors, environmental impact of products, anti-corruption compliance. Organisations funded by donors (AfDB, IFC, BOAD) are subject to ESG procurement requirements.
Environmental, Social and Governance indicators used to assess organisational sustainability.
ESG criteria are a set of non-financial standards for assessing an organisation's sustainable practices. E (Environmental): carbon footprint, water and energy consumption, waste management. S (Social): working conditions, diversity, human rights in the supply chain. G (Governance): transparency, anti-corruption, board composition. In Africa, institutional investors (IFC, DEG, Proparco, CDC) impose ESG assessments on companies they finance. The Global Reporting Initiative (GRI) provides the most widely used reporting standards.
Common Market for Eastern and Southern Africa: free trade area with 21 member states.
COMESA (Common Market for Eastern and Southern Africa) is an African regional organisation founded in 1994 grouping 21 member states in Eastern and Southern Africa. Its objective is to create a free trade area and customs union. COMESA also manages: the Simplified Trade Regime (STR) for small cross-border traders, the Regional Customs Transit Guarantee (RCTG) for transit goods, and the COMESA Court of Justice for commercial disputes. African SMEs exporting to the region should check their eligibility for COMESA tariff preferences.
Southern African Development Community: regional organisation of 16 member states.
SADC (Southern African Development Community) is an African regional organisation founded in 1992, grouping 16 member states in southern and eastern Africa. It aims at economic integration, sustainable development and regional security. SADC established a Free Trade Area (FTA) in 2008 and is working towards a customs union. Companies from member states can benefit from tariff preferences for intra-SADC trade subject to rules of origin. Public procurement in SADC countries is subject to national rules, but SADC guidelines encourage transparency and regional access.
Economic Community of West African States: regional organisation of 15 member states.
ECOWAS (Economic Community of West African States / CEDEAO) is a regional organisation founded in 1975, grouping 15 West African states. It aims at economic integration, free movement of persons and goods, and regional peace. The ECOWAS Common External Tariff (CET) has been in force since 2015 and applies to imports from outside the zone. Companies importing or exporting in the zone must know the ECOWAS CET rules and ECOWAS procedures for certificates of origin.
Tax withheld at source by the payer on certain payments made to third parties.
Withholding tax is a fiscal mechanism whereby the company paying certain income (fees, dividends, royalties, interest) must withhold a percentage of the gross amount and remit it directly to the tax authority. In the OHADA zone, rates vary by country and payment type: for example, in Côte d'Ivoire, withholding on professional fees is 15% for non-residents. For SMEs, this obligation applies particularly to payments to service providers, consultants and unregistered suppliers.
Tax authority verification of the accuracy of a company's tax returns and payments.
A tax audit is the procedure by which the tax authority verifies that companies have correctly declared and paid their taxes. In Africa, audits are initiated by notification or may be unannounced. They cover: VAT, corporate income tax, withholding taxes and customs duties. Large companies are typically audited every 3-5 years. In case of a reassessment, penalties and late interest apply. Good document management (invoices, contracts, supporting documents) is essential to respond to audits.
Prices of transactions between entities of the same multinational group, subject to the arm's length principle.
Transfer pricing refers to the prices charged in transactions between related parties (subsidiaries, parent company, sister companies) within the same multinational group. The OECD and African tax authorities require these prices to comply with the arm's length principle: they must be comparable to those between independent parties. Transfer pricing documentation is mandatory in many African countries (Morocco, Senegal, Côte d'Ivoire, South Africa, Nigeria, Kenya) for groups exceeding certain thresholds. Tax adjustments and penalties apply for non-compliance.
Taxes levied by the state on goods crossing a customs border.
Customs duties are taxes levied by customs administrations on goods when crossing a border. In West Africa, the ECOWAS Common External Tariff (CET) applies to extra-zone imports with 5 tariff bands (0%, 5%, 10%, 20%, 35%). In Central Africa (CEMAC), the CEMAC CET is in force. In Southern Africa, the SACU (Southern African Customs Union) defines the external tariff. Customs duties are calculated on the customs value (transaction price + insurance + freight). Customs value is determined using the WTO Customs Valuation Agreement methods.
Geographic area with tax and customs advantages to attract investment.
A free trade zone (or special economic zone) is a delimited territory where companies benefit from tax, customs and regulatory advantages to promote investment and exports. In Africa, these include export processing zones (EPZs like in Mauritius, Madagascar, Senegal, Morocco), special economic zones (SEZs like in Djibouti, Ethiopia, Rwanda), and free port zones. Companies in free zones generally benefit from customs duty exemptions, VAT exemptions, corporate income tax holidays (for an initial period) and reduced social charges.
Banking services accessible via mobile phone, complementary or alternative to traditional bank accounts.
Mobile banking provides access to financial services via a mobile phone: balance enquiry, transfers, bill payment, savings, credit. It differs from Mobile Money (mobile wallet operated by a telecom operator): mobile banking is operated by a regulated bank via an app. In Africa, banks like Ecobank, UBA, KCB, Standard Bank offer advanced mobile apps. Central banks provide interoperability conditions between mobile banking and Mobile Money systems.
Ability for users of different Mobile Money systems to transact with each other.
Mobile Money interoperability is the technical and regulatory capability allowing a user of one operator (e.g. MTN MoMo) to send funds to a user of another operator (e.g. Orange Money) without friction. The BCEAO mandated interoperability in the UEMOA zone via the Interbank Electronic Money System (SIME) since 2020. In Kenya, GSMA and the Central Bank facilitated interoperability between M-Pesa, Airtel Money and T-Kash. Interoperability is a key financial inclusion factor and simplifies inter-operator B2B settlements for SMEs.
Raising funds from a large audience via the internet to finance a project or business.
Crowdfunding allows African project promoters to raise funds via online platforms from a large number of investors or donors. Types include: donation (philanthropic), reward (non-financial return), lending (crowdlending), and equity investment (equity crowdfunding). Platforms like Afrikstart, Wefund, M-Chango (Kenya), Thundafund (South Africa), and Kickstarter/Indiegogo extensions are active in Africa. Crowdfunding regulation varies by country and is evolving.
Access of individuals and businesses, particularly the unbanked, to useful and affordable financial services.
Financial inclusion refers to the access and use of formal financial services (bank account, credit, insurance, savings, payments) by people and businesses previously excluded. In sub-Saharan Africa, according to the World Bank (Global Findex 2021), approximately 55% of adults have a formal financial account (bank account or Mobile Money), compared to 76% in developed countries. Mobile Money has been the main driver of financial inclusion in Africa, notably in Kenya (M-Pesa) and West Africa (Orange Money, MTN MoMo). The BCEAO and BEAC have national financial inclusion strategies.
Insurance protecting a company against the risk of non-payment of its trade receivables.
Trade credit insurance protects exporting companies and credit sellers against the risk of insolvency or payment default by their customers. In Africa, public bodies like BOAD (West African Development Bank), CAO, ATI (African Trade Insurance Agency), and private insurers (Euler Hermes/Allianz Trade, Atradius, Coface) offer trade credit insurance products. It is particularly useful for SMEs exporting to high-risk countries.
Voluntary corporate commitment to sustainable development by integrating social and environmental concerns.
Corporate Social Responsibility (CSR) is the voluntary corporate contribution to sustainable development challenges. It covers environmental (carbon footprint reduction, waste management), social (working conditions, local employment, human rights), and governance (transparency, anti-corruption) dimensions. In Africa, CSR is driven by listed large companies, multinationals and companies financed by donors (IFC, AfDB). ISO 26000 provides the international reference framework. CSR in procurement translates into ESG criteria in supplier selection.
Technology companies offering innovative financial services tailored to African markets.
African fintechs are revolutionising access to financial services: payments (Flutterwave, Paystack, Wave), loans (Branch, Pezesha, Jumo), insurance (BIMA, Turaco, MicroEnsure), savings (M-Shwari, Cowrywise), and B2B services (Procura for procurement). According to GSMA and Partech Africa, Africa is the continent where Mobile Money is most used globally, with over 620 million active accounts. African fintech hubs include: Lagos (Nigeria), Nairobi (Kenya), Cape Town (South Africa), Dakar (Senegal), Accra (Ghana).
International standard defining the requirements of a quality management system.
ISO 9001 is the world's most widespread international standard for quality management systems (QMS), published by the International Organization for Standardization (ISO). It applies to any type of organisation. The current version is ISO 9001:2015. In Africa, ISO 9001 certification is required by many buyers (large companies, international public procurement, foreign clients). It covers: leadership, planning, support, operations, performance evaluation and continuous improvement. For procurement, ISO 9001 requires supplier qualification and evaluation procedures.
The monthly or quarterly VAT return under the French normal regime: VAT collected by rate, deductible VAT, then VAT payable or credit.
The CA3, form 3310-CA3, is the VAT return for companies under the French normal regime. It is filed electronically, monthly, or quarterly when annual VAT due stays below €4,000. It reads in two parts. At the top, VAT collected on taxable transactions is ventilated by rate: box 08 for the standard 20% rate, box 9B for the intermediate 10% rate, box 09 for the reduced 5.5% rate, box 11 for the special 2.1% rate. At the bottom, deductible VAT is split between capital goods (box 19) and other goods and services (box 20). The difference yields either net VAT payable (box 32) or a VAT credit (box 25), carried forward or refunded. Ventilation by rate is precisely why a supplier invoice must keep its VAT line by line: an invoice carrying several rates cannot be declared correctly if the system stores only one aggregate VAT amount.
The public portal through which invoices addressed to the French State and public bodies must be sent.
Chorus Pro is the shared e-invoicing solution for the French public sector, operated by AIFE. Since 1 January 2020, any company invoicing the State, a local authority or a public body must submit invoices through it: paper or email submission is no longer accepted. The supplier submits by online entry, file upload or automated flow, identifying the recipient entity by SIRET and, where applicable, its service code and legal commitment number. The portal then tracks status from receipt through to payment. For a company selling to both public and private sectors, Chorus Pro and the business-to-business e-invoicing reform coexist: the former governs invoices to the public sphere, the latter exchanges between companies.
The details an invoice must carry in Québec for the buyer to claim input tax credits and refunds.
In Québec, the buyer's right to recover taxes depends on the invoice received. Revenu Québec and the Canada Revenue Agency impose content that grows with the amount. Under $30, the invoice must show the supplier's name, the date and the total tax amount. From $30, the supplier's GST and QST registration numbers are added, along with the amount of each tax or a statement of the rates applied. From $150, the invoice must also identify the buyer, describe the goods or services and state the payment terms. Without these details, an input tax credit or refund claim can be denied on audit even when the expense is genuine: the practical reason a vendor register must retain tax numbers, and why three-way matching checks the invoice before payment.
The standardised file every French company keeping computerised accounts must be able to hand to the tax authority during an audit.
The Fichier des Écritures Comptables is required by article L47 A-I of the French tax procedures code. Any company keeping its accounts on computerised systems must be able to produce it during an audit. Its structure is set by the order of 29 July 2013: eighteen mandatory columns, including journal code and label, entry number and date, account number and label, sub-account details, supporting document reference and date, entry label, debit and credit amounts, reconciliation marker and date, validation date, currency amount and identifier. The filename follows a strict convention: the SIREN number, the letters FEC, then the financial year-end date as YYYYMMDD. An incomplete or non-compliant FEC exposes the company to a fine and, in the most serious cases, rejection of its accounts.
The Franco-German e-invoice format: a readable PDF with an embedded structured XML file.
Factur-X is a hybrid e-invoice format developed jointly by France (FNFE-MPE) and Germany (ZUGFeRD). It combines a human-readable PDF/A-3 and an embedded machine-readable XML file (CII syntax). Compliant with the European EN 16931 standard, it is one of the core formats of the French e-invoicing reform, alongside UBL and CII. Every line carries its description, quantity, price and VAT rate, enabling automatic matching against the purchase order and VAT ventilation by rate.
Intermediary registered with the French tax administration to transmit electronic invoices.
In the French e-invoicing reform, the approved platform (formerly PDP) is an operator registered with the tax administration. It transmits invoices between suppliers and clients, extracts the data the administration needs and circulates lifecycle statuses, four of which are mandatory: deposited, rejected, refused, cashed. Since 1 September 2026 every VAT-registered business must have designated a PA to receive its invoices, whatever its size. Business software (purchasing, invoicing, accounting) connects to PAs as compatible solutions: they issue and receive through the PA without being one.
The European standard defining the semantic content of an electronic invoice.
EN 16931, published by the European Committee for Standardization, defines the semantic model of the e-invoice: the information it must contain (identities, dates, lines, VAT rates and amounts, totals) and its precise meaning. The French core formats (Factur-X, UBL, CII) are compliant syntaxes of it. The practical consequence for a business is interoperability: an EN 16931 invoice issued by any compliant tool is usable by any other.
A company's European tax identifier: FR + 2-digit key + SIREN.
The intra-community VAT number identifies a company for trade within the European Union. In France it derives from the SIREN: FR, then a two-digit check key computed as (12 + 3 × (SIREN modulo 97)) modulo 97, then the nine SIREN digits. It must appear on invoices and can be verified in the European Commission's VIES database. An invalid number on a supplier invoice jeopardizes VAT deduction.
French identifiers for the company (9 digits) and the establishment (14 digits).
The SIREN identifies a French company: nine INSEE-assigned digits validated by the Luhn algorithm. The SIRET identifies each establishment: the nine SIREN digits followed by a five-digit NIC, fourteen digits also Luhn-checkable (with a special rule for La Poste). These identifiers appear on invoices, contracts and filings; the SIREN also builds the intra-community VAT number and the FEC's regulatory filename.
France's obligation to receive, then issue, invoices through an approved platform, in force since 1 September 2026.
Since 1 September 2026, every VAT-registered business established in France must be able to RECEIVE its supplier invoices electronically, through an approved platform. The obligation does not depend on size, revenue or legal form. The obligation to ISSUE arrives in two waves: 1 September 2026 for large companies and mid-sized enterprises, 1 September 2027 for SMEs, small businesses and micro-enterprises. Having no approved platform carries a €500 fine, rising to €1,000 for each three-month period the situation lasts; an invoice issued outside the scheme costs €15. Two practical consequences are often missed: an SME that does not yet issue must nonetheless receive today, and its purchasing software has to read a structured invoice, not merely archive it.
Sending the tax authority the transaction and payment data that e-invoicing does not cover.
E-reporting is the reform's second component, and the forgotten one. E-invoicing covers exchanges between businesses established in France; everything else goes through e-reporting: sales to individuals, transactions with foreign companies, and payment data for services. It is not the invoice that is transmitted but an aggregated data set. Frequency depends on the VAT regime: on the monthly standard regime, transaction data goes out in ten-day blocks, within ten days; payment data once a month. The timetable follows the issuance one — 1 September 2026 for large and mid-sized companies, 1 September 2027 for everyone else. A business selling only to French professionals has nothing to report; the moment it sells to a consumer or exports, it is in scope.
The central register saying which approved platform an invoice must be sent to for a given company.
The directory is what makes the scheme workable: it maps every company, identified by SIREN or SIRET, to the approved platform that receives its invoices. It is what frees two companies from having to pick the same provider — the sender deposits on its own platform, which queries the directory and routes the invoice to the recipient's. A missing or stale address in the directory is one of the most mundane causes of technical rejection, and it has nothing to do with the invoice's content. Two practical consequences: a company must keep its entry current, especially when changing platform or opening a site; and a newly created supplier may be unfindable for the first few days after registration.
The four states an approved platform must report: deposited, rejected, refused, cashed.
The reform does not merely move the invoice: it circulates its state. Four statuses are mandatory and reported to the tax authority. Deposited: the supplier has handed the invoice to its platform. Rejected: the platform refuses it on technical grounds — a missing mention, an invalid format, a recipient absent from the directory. Refused: the customer disputes it on business grounds, a price, a quantity, work not done. Cashed: payment has been received. Confusing rejected with refused is the expensive mistake: the first is fixed in the file, the second is settled with the customer, and treating one as the other loses days. Other, optional statuses exist and platforms may exchange them.
What a French invoice must carry, including the four details added by the e-invoicing reform.
A French invoice has long carried both parties' identity and address, the issuer's SIREN, its intra-community VAT number, a unique sequential invoice number, the issue date, each line's description and quantity, the unit price excluding tax, the VAT rate per line, totals excluding and including tax, the due date, the late-payment penalty rate and the mention of the €40 fixed recovery indemnity. The reform adds four: the CUSTOMER's SIREN, which the tax authority uses as the pivot for matching flows; the delivery address for goods when it differs from the billing address; the category of the transaction, supply of goods, supply of services or both; and, where applicable, the election to account for VAT on debits. They apply on the issuance timetable: 2026 for large and mid-sized companies, 2027 for everyone else.
France's statutory ceiling: 60 days from the invoice, or 45 days end of month where the contract provides for it.
France's economic modernisation act caps the terms professionals may agree. Absent an agreement, payment falls due on the thirtieth day after the goods are received or the service performed. Where the parties do agree a term, it cannot exceed sixty days from the invoice date, or forty-five days end of month where that form is expressly stipulated in the contract. Some sectors have derogations. Lateness triggers penalties as of right, at a rate no lower than the European Central Bank's plus ten points, together with a €40 fixed recovery indemnity per invoice. Exceeding the cap is not merely a private matter: the DGCCRF issues administrative fines of up to €75,000 for an individual and €2,000,000 for a legal entity, doubled on repeat within two years, and publishes them.
The mechanism where the buyer accounts for the VAT itself, on an invoice issued without tax.
Under the reverse charge, the supplier invoices without tax and the customer accounts for the VAT, entering it as both output and input tax on its CA3 return. The operation is cash-neutral where the right to deduct is full, but it is not neutral for reporting: forgetting to account for it distorts the return in both directions. The commonest cases for an SME are intra-community acquisitions of goods, services supplied by a provider established outside France, construction subcontracting, and import VAT, reverse-charged on the return since 1 January 2022. The invoice must carry the mention Autoliquidation, and its absence is a common rejection ground. In practice the supplier record must carry the flag: that record, not the invoice keying, should trigger the right treatment.
The annual return of fees, commissions and brokerage paid to third parties above €2,400 per beneficiary.
Any business paying fees, commissions, brokerage, rebates, sessional pay or royalties in the course of its activity must declare them, beneficiary by beneficiary. The threshold has doubled: it moved from €1,200 to €2,400 per year per beneficiary, by a BOFiP update of 12 February 2025 applying to amounts paid from 2024. The return is in principle filed by 31 January, with a tolerance allowing it to accompany the income tax return. Its practical interest goes beyond the formality: the DAS2 is rebuilt from the general ledger's fee accounts, provided third parties are identified properly. Books where the lawyer, the accounting firm and the consultant all post to one account with no sub-ledger make the exercise manual every year.
The 5 percent Canadian federal tax computed on the net amount of taxable sales.
GST is the Canadian federal tax on most goods and services, at 5 percent. In Québec it coexists with QST and both are administered by Revenu Québec. GST is computed on each line's net (pre-tax) amount. Registered businesses collect it on sales, recover what they paid on eligible purchases through input tax credits (ITCs), and file, in Québec, on the combined FPZ-500 form. The registration number takes the form 123456789RT0001.
The 9.975 percent Québec tax computed on the net amount, not compounded on GST since 2013.
QST is Québec's provincial sales tax, at 9.975 percent. Since January 1, 2013, it is computed on the net amount, like GST and independently from it: the effective combined rate is 14.975 percent. Registered businesses collect QST on sales and recover what they paid on purchases through input tax refunds (ITRs). The registration number takes the form 1234567890TQ0001. In accounting, QST requires its own accounts, separate from GST's, so the FPZ-500 return reads straight from the books.
The combined GST/QST return form administered by Revenu Québec.
The FPZ-500 is the return by which a Québec business remits GST and QST: line 101 for total supplies, 105/108/109 for GST (collected, ITCs, net), 205/208/209 for QST (collected, ITRs, net). The rhythm (monthly, quarterly, annual) depends on volumes. When accounting keeps GST and QST in separate accounts and carries taxes line by line from purchase time, the return generates from the books instead of being rebuilt at period end.
The ten-digit identifier assigned by the Québec enterprise registrar.
The NEQ identifies any business registered with the Québec enterprise register: ten digits assigned by the registrar, used in exchanges with the Québec administration and on official documents. It is distinct from the tax registration numbers (GST RT0001, QST TQ0001) and from the federal business number. In a clean vendor process, the NEQ is collected and validated at onboarding, alongside tax numbers, to secure document compliance.
The Québec law modernizing personal information protection in businesses.
Law 25 modernizes Québec's personal information framework: designating a privacy officer, keeping a confidentiality incident register and notifying the Commission d'accès à l'information when serious harm is at risk, conducting privacy impact assessments before certain processing and before communicating information outside Québec, strengthened individual rights (access, rectification, portability). For business software selection it motivates precise questions: where data is hosted, what safeguards govern transfers, how rights are exercised.
The strengthened right to work in French in Québec, software tools included.
Bill 96 modernizes the Charter of the French language and strengthens Québec workers' right to carry out their activities in French: employer communications, work documents and, by practical extension, the software used daily. For purchasing and finance tools this shapes evaluation: complete French interface (screens, settings, error messages), documents issued in French (purchase orders, invoices), French notifications and support, and parity between languages over time.
Organisation for the Harmonisation of Business Law in Africa.
OHADA is a treaty signed in 1993 in Port-Louis (Mauritius) harmonising business law across 17 African states: Bénin, Burkina Faso, Cameroon, Central African Republic, Comoros, Congo, Côte d'Ivoire, Gabon, Guinea, Guinea-Bissau, Equatorial Guinea, Mali, Niger, Democratic Republic of Congo, Senegal, Chad, Togo. Its Uniform Acts cover accounting law (SYSCOHADA), corporate law and security law, among others.
Trade and Movable Credit Register, OHADA's equivalent of the commercial register.
The RCCM is governed by OHADA's Uniform Act on General Commercial Law. Every commercial company must be registered at incorporation. The RCCM number is the official identifier used on invoices, POs and contracts. In procurement, it is a mandatory KYC document to qualify a vendor.
Unique tax identifier, the OHADA equivalent of the tax number.
The IFU (Bénin's Unique Tax ID) or NIF (Tax Identification Number in other OHADA countries) is assigned by each country's Tax Authority (DGI). It appears on every invoice, return or tax correspondence. It is a mandatory KYC item for local vendors and a prerequisite for deductible VAT.
Economic and monetary integration zone grouping 8 West African countries sharing the CFA.
The West African Economic and Monetary Union (UEMOA) groups eight member states: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, Togo. It was created by the Dakar Treaty of 10 January 1994. UEMOA has a common currency (the CFA managed by BCEAO), a Common External Tariff (CET) for imports from outside the zone, a single market with free movement of goods and services between member states, and a harmonised accounting framework (revised SYSCOHADA 2018 for businesses). For SMEs in the zone: duty-free import of goods between the 8 countries, harmonised VAT (common minimum rate), and the same legal framework for commercial contracts (OHADA).
Economic integration zone grouping 6 Central African countries sharing the XAF.
The Economic and Monetary Community of Central Africa (CEMAC) groups six member states: Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, Chad. It shares a common currency (the XAF issued by BEAC) and a common market with a Common External Tariff. Unlike UEMOA, CEMAC does not apply OHADA law to the same extent: Cameroon, Congo, Gabon, Chad and CAR are OHADA members, but Equatorial Guinea is a special case. For inter-CEMAC procurement, goods originating in the zone circulate without customs duties. CEMAC has its own stock exchange (BVMAC, Douala).
Supranational legislative text adopted by the OHADA Council of Ministers, directly applicable in all member states.
Uniform Acts are the fundamental legal instruments of the OHADA system. Adopted unanimously by the Council of Ministers, they apply directly in all 17 member states without requiring national transposition. They take precedence over national law in case of conflict. The main Uniform Acts are: general commercial law (AUDCG), commercial companies (AUSC), security interests (AUS), collective insolvency proceedings (AUPC), labour law (AUDT, in preparation), accounting and financial information (SYSCOHADA). Uniform Acts are published in the OHADA Official Journal.
Set of rules governing commercial activities in the 17 OHADA member states.
OHADA commercial law is primarily governed by the Uniform Act on General Commercial Law (AUDCG), revised in 2010. It covers: trader status (commercial acts, RCCM registration), business (acquisition, sale, pledge of business), commercial contracts (commercial sale, commercial lease), commercial proof and trade instruments (bill of exchange, promissory note, cheque). The Trade and Credit Register (RCCM) is the central registration file for traders and companies in each member state.
Limited liability company form with share capital, governed by the OHADA AUSC.
The Société Anonyme (SA) is the most sophisticated company form under OHADA law, governed by the Uniform Act on Commercial Companies (AUSC). It is characterised by: a minimum capital of FCFA 10 million (approx. EUR 15,000), freely negotiable shares, shareholder liability limited to their contributions, and two governance modes (board + CEO, or supervisory board + management board). The SA is required for listed companies, banks, insurance companies and public enterprises.
Set of tangible and intangible elements enabling a trader to carry on business.
The business (fonds de commerce) is the totality of elements needed to operate a commercial activity. Under OHADA law (AUDCG), it comprises intangible elements (clientele, lease rights, trade name, commercial name, patents, licences, trademarks) and tangible elements (equipment, tools, stock). The clientele is the essential element. The business can be sold (assignment), put under management lease, pledged to a creditor, or contributed to a company. Its value is often assessed based on revenue or operating profit.
Commercial dispute resolution through the OHADA Common Court of Justice and Arbitration.
The OHADA Common Court of Justice and Arbitration (CCJA) is both a supranational court (cassation court for disputes involving Uniform Acts) and an arbitration centre. CCJA arbitration is an alternative to national courts for international commercial disputes in Africa. A CCJA award is directly enforceable in all member states. The OHADA Uniform Act on Arbitration (AUA) governs ad hoc arbitrations in the OHADA zone. Arbitration is increasingly preferred for major commercial contracts and investments in Africa.
Chart of accounts organised in 9 classes used in the 17 OHADA member states.
The SYSCOHADA chart of accounts is the standardised account nomenclature applicable in the 17 OHADA member states. It is organised into 9 classes: Class 1 (long-term resources), Class 2 (fixed assets), Class 3 (inventories), Class 4 (third parties), Class 5 (cash), Class 6 (expenses), Class 7 (income), Class 8 (other expenses and income), Class 9 (analytical accounts). SYSCOHADA revised 2018 integrated relevant IAS/IFRS (fixed assets, finance leases, provisions). Any accounting software approved in the OHADA zone must incorporate this chart of accounts.
All definitions are based on official texts (OHADA Uniform Acts, SYSCOHADA Révisé 2018, national finance laws, circulars from national Tax Authorities and social-security bodies). For the official wording in your country, consult the source text.