Report reveals alarming rise in procurement fraud across Africa

A new report from ACCA (the Association of Chartered Certified Accountants) titled Combatting Fraud in a Perfect Storm, has revealed a worrying trend in the fraud landscape across Africa, showing that procurement fraud, bribery, corruption, and payroll fraud occur at significantly higher rates than global averages. According to the report, procurement fraud alone has a staggering 34% prevalence, yet it is often dismissed as "operational leakage" or simply a cost of doing business — minimising its immediate and long-term financial and organisational implications.

Launched during International Fraud Awareness Week, the comprehensive study draws insights from over 2,000 professionals and 31 roundtable discussions held worldwide. It illuminates how weak governance, limited oversight, and fragmented internal controls render organisations susceptible to fraud. The findings point to bribery and corruption as pervasive issues affecting both public and private sectors, while the rapid adoption of mobile banking presents first-mover vulnerabilities that increasingly sophisticated fraud actors are keen to exploit.

In collaboration with prominent organisations including the Association of Certified Fraud Examiners (ACFE), Institute of Internal Auditors (IIA), Chartered Institute for Securities & Investment (CISI), and others, ACCA has introduced a new Prevalence vs Materiality matrix. This tool is designed to enhance decision-making and resource allocation in the fight against fraud, before it erodes organisational integrity. The report's companion Calls to Action and Thematic Typology serve to guide organisations in identifying effective strategies and incorporating behavioural insights into risk governance, shifting the focus of fraud prevention from mere compliance to operational reality.

Furthermore, Africa is witnessing a global trend of emerging ESG-related fraud, with significant cases linked to procurement processes for sustainability programmes and donor-funded initiatives. These schemes often evade oversight due to opaque vendor structures and ineffective consequence management, highlighting the critical need for more stringent controls.

Regional survey findings indicate reporting confidence is notably low among small and medium enterprises (SMEs) and public-sector entities, averaging just 3.79 out of 5. This statistic underscores the pressing need for committed leadership, independent investigation channels, and visible follow-through on reported concerns. Respondents to the survey expressed that speaking out about fraud often involves significant social and professional risks, hence advocating for anonymous reporting mechanisms and a culture of accountability led by organisational leaders.

Key Regional Findings:

• Procurement fraud (34%) remains the foremost risk in Africa, followed closely by bribery and corruption as well as payroll fraud.
• The continent reports substantially higher rates of bribery, corruption, and payroll manipulation compared to global averages.
• Vulnerabilities stemming from mobile banking are enabling sophisticated cyber-enabled theft and identity manipulation.
• Confidence in reporting fraud is lowest among SMEs and public sector organisations, with an average score of 3.79/5.
• Across all respondent groups, there is a strong demand for independent investigations, leadership commitment, and visible outcomes.
• Emerging episodes of ESG-related fraud highlight the necessity for scrutiny in procurement and sustainability-linked expenditure.

“Procurement fraud and bribery have become deeply embedded in organisational processes across the continent,” said Rachael Johnson, head of risk management and corporate governance in ACCA’s policy and insights team. “Africa’s swift digital adoption presents enormous opportunities, but also introduces vulnerabilities that necessitate enhanced risk governance and more transparent reporting structures.”

“Strengthening Africa’s resilience means elevating integrity to a board-level priority,” added Jamil Ampomah, director for Africa at ACCA. He added that there is an urgent need for clearer policies, independent investigations, and cultures within organisations where speaking up about fraud is both safe and expected. “Only then can we confront fraud effectively, preventing it from eroding value and public trust.”

The report calls for a collective reset among organisations to embed proactive detection measures, bolster accountability, and align governance structures with global best practices. It reinforces the notion that combating fraud in Africa necessitates uniting professionals, modernising oversight, and ensuring that consequence management is transparent, consistent, and trusted.

For those interested in delving deeper, the full report is available for download at https://www.accaglobal.com/gb/en/professional-insights/risk/combatting-fraud.html.