PricewaterhouseCoopers has withdrawn from nine Sub-Saharan African countries as part of a strategic review, the Big Four accounting firm confirmed, amid reports that it had exited a wider set of markets deemed high-risk or unprofitable.
In a statement published on its website, PwC said it had closed operations in Ivory Coast, Gabon, Cameroon, Madagascar, Senegal, the Democratic Republic of Congo, Republic of Congo, Republic of Guinea, and Equatorial Guinea.
The decision marks one of the most significant contractions by a major global accounting firm in the region in recent years.
PwC operates as a network of independent but affiliated partnerships, and said the move followed a review of its network structure and long-term strategy in certain markets.
Some context
The closures follow reports of internal tensions between PwC’s global leadership and local partners, particularly over the firm’s push to de-risk client portfolios.
A Financial Times report, citing people familiar with the matter, said that local partners in several African markets had seen revenues fall by more than one-third in recent years, after being asked to sever ties with clients deemed high risk.
PwC’s statement did not elaborate on its reasons for exiting the countries but said it remained committed to serving clients in Africa through its offices in key markets such as Nigeria, Kenya, and South Africa. “We remain confident in the long-term growth potential of the continent,” it said.
A Financial Times report also cited documents and local news sources indicating that PwC had cut ties with member firms in Zimbabwe, Malawi, and Fiji, although PwC declined to comment on these reports.
What to know
The firm has been under growing scrutiny globally over audit quality and governance practices. In January, PwC’s China arm was fined $62mn and suspended from undertaking new business for six months by Chinese regulators for audit lapses linked to China Evergrande, the property developer at the centre of a $78bn accounting scandal.
- In March, PwC was fined £5mn by the UK’s Financial Reporting Council over its 2019 audit of Wyelands Bank. The UK regulator found that PwC failed to obtain sufficient audit evidence and did not exercise appropriate professional scepticism.
- PwC is also seeking to rebuild its relationship with Saudi Arabia’s Public Investment Fund after the $925bn sovereign wealth fund suspended dealings with the firm’s local affiliate late last year.
The developments come at a time of heightened regulatory pressure and reputational risk for global audit firms, as authorities in several jurisdictions intensify scrutiny over their role in corporate failures.
