In the current economic landscape, where geopolitical and macroeconomic environments are constantly changing, the role of the CFO has become increasingly dynamic. ICPAR director of strategy Julian Ingabire, ICPAR vice president John Bugunya, and Exim Bank Tanzania founder Hanif Jaffer, who form part of the 2025 CFO Awards judges’ panel, offer their perspectives on the most pressing issues facing CFOs today.
The Fourth Industrial Revolution poses a special challenge to today’s finance leaders, who must grapple with the evolving demands of the CFO role. One such challenge is automation. A In a 2023 survey of key priority areas for CFOs, 69 percent of global finance leaders cited the automation of key tasks as the main factor behind the evolution of the role. The report also showed that 90 percent of companies all over the world are making more capital allocations toward digital transformation.
John Bugunya shares this view, saying, “I think the biggest challenge CFOs are facing is automation. There's a lot of information out there about automation, big data, and AI, but the reality is that in this part of the world, we don't know what this means yet. How do we take advantage of this? This agenda is largely being driven by the IT functions within the different institutions based on the recommendations of either the auditors, risk departments or the regulators, but the CFOs are not central in the process of ensuring that there's value before investing in these systems and asking the necessary questions.”
John believes being able to appreciate the benefits of automation and transfer them to the business is the main sticking point for CFOs. Similarly, a 2023 survey that assessed the adoption and integration of AI in the financial services sector revealed a lack of proper infrastructure, clear commitment from leadership, and governance frameworks were the main barriers to the uptake of AI in organisations.
“For example, what systems do we need? What is the lifetime value of these systems? And how do we then ensure that there's benefit in the long term? So, you find that a lot of CFOs are struggling to understand how to leverage this automation and justify investments being made to management and the board. Obviously, there's the other side of the coin, where a lot of accountants are scared that these systems will render us obsolete. That is something also that possibly holds us back from embracing these systems,” he explains.
Julian concurs, identifying regulatory changes and economic volatility as significant challenges. In 2023, for instance, Rwanda’s new Payment Service Providers (PSP) regulation, required all existing PSPs to recategorise their licenses by 18 September 2024.
“For a CFO to be able to manage such challenges, they need to be resilient. They need to be adaptable. They need to be able to upskill and re-skill because sometimes, you're the best today, but tomorrow, because of different disruptions, you are no longer the best,” she says.
Julian recommends continuous learning to keep pace with developments that place new demands on the finance function.
“What other skills do you need to drop and pick up to be able to navigate the complexities, but also be effective in what you're doing? So, they have to be forward thinking and make sure they have the right skills to manage the changes,” she says.
Hanif believes CFOs must expose themselves to international trends and build flexibility into their financial planning to stay ahead of potential disruptions.
“If a CFO doesn't grow, then there's a problem. Finishing your degree and working doesn't help. The biggest problem is exposure. If you cannot understand what's happening outside your country, outside your environment. I think it's also important to attend a lot of seminars abroad. It gives you a lot of exposure to what's happening outside. Another thing is continuous education. If the CFO can continue with his education outside his degree, that will help him grow,” he says.
