KPMG has released its findings of the third Africa Fraud Barometer, which shows an overall decrease in reported fraud from 503 in the first half of 2012 to 348 cases in the second half of 2012. With the size of its economy, South Africa has the highest number of reported fraud cases on the African continent. The latest findings indicate that slightly more fraud cases are reported (1.46%) compared to the previous reporting period. This may be due to the vigilant media in South Africa significantly contributes to this.
“In South Africa, foreign investors and South African companies investing on the African continent are increasingly conscious of multinational and national anti-fraud legislation. They understand that not playing by the rules can have a significant impact on market capitalization and are therefore more accountable when it comes to fraud and corruption,” says Petrus Marais. “We also see a number of enforcement agencies, such as the National Prosecuting Authority of South Africa, working hard to bring perpetrators to justice. Prosecution is increasing but still remains low compared to reported cases. We do note improvement, but also understand that it may take more time.”
Find out about the results for other major African economies. Download the full report.