For organisations operating in francophone Africa with international partners, donors, or investors, this is one of the most frequently asked questions in finance. The answer is: it depends on who you report to and why.

Understanding the Two Frameworks

OHADA (Organisation pour l’Harmonisation en Afrique du Droit des Affaires) created SYSCOHADA — the Uniform Act on Accounting Law applicable across all 17 OHADA member states. It is a legal obligation for entities incorporated in OHADA jurisdictions. You cannot opt out of OHADA compliance if you operate in these countries.

IFRS (International Financial Reporting Standards), issued by the IASB, are the globally recognised standards used by publicly listed companies, multinational groups, development finance institutions, and international donors. IFRS is not a legal requirement in most OHADA states for private companies, but it is increasingly required by lenders, investors, and development partners.

The Decision Framework

Use SYSCOHADA ONLY if: You are a small-to-medium local entity with no international financing, no foreign investors, and no group reporting obligations. Your primary audience is local tax authorities and domestic stakeholders.

Use IFRS ONLY if: You are a subsidiary of a foreign parent company that consolidates under IFRS, or you are seeking financing from development banks (IFC, AfDB, Proparco, etc.) that require IFRS-compliant statements.

Produce BOTH if: You have local legal obligations under OHADA but also report to international investors or donors. This is the most common scenario for growing African businesses and NGOs — two sets of financial statements, managed by an experienced finance team.

Practical Implications

Maintaining dual-standard reporting is more manageable than it sounds if your chart of accounts is designed for it from the start. The key differences to manage are: fixed asset depreciation methods, lease accounting (IFRS 16 has no direct OHADA equivalent), revenue recognition timing, and financial instrument measurement.

Valid Wave Consulting helps organisations design accounting systems that satisfy both OHADA compliance and IFRS reporting requirements simultaneously. If you are navigating this question, book a free 30-minute consultation.