PricewaterhouseCoopers (PwC), one of the world’s leading accounting firms, has announced its withdrawal from nine African countries as part of a strategic overhaul aimed at mitigating risks and restoring its global reputation following a series of audit-related controversies.
The firm has ceased operations in the following countries:
Côte d’Ivoire
Gabon
Cameroon
Democratic Republic of Congo
Republic of Congo
Madagascar
Republic of Guinea
Senegal
Equatorial Guinea
This decision follows a comprehensive strategic review that identified these markets as either too risky or unprofitable.
PwC’s global operations have come under intense scrutiny due to significant audit failures:
China: The firm’s mainland China division faced a six-month suspension and a $62 million fine for its audit of property developer Evergrande, which had overstated its sales by approximately $80 billion.
United Kingdom: The Financial Reporting Council imposed a £4.5 million fine on PwC for deficiencies in its 2019 audit of Wyelands Bank.
These incidents have prompted PwC to reassess its global operations, leading to the decision to exit markets deemed high-risk.
Internal reports indicate that local leaders in the affected countries experienced significant business losses after being pressured by global executives to sever ties with high-risk clients.
In response to these challenges, PwC has initiated job cuts and delayed promotions, particularly among middle management, to manage costs amid reduced client spending in the consultancy sector.
Despite these withdrawals, PwC maintains a strong presence in Africa and has service continuity plans in place for clients in the affected regions. The firm emphasizes its commitment to the continent through its 5+1 Ubuntu Bethu strategy, focusing on community, collaboration, and sustainable growth.
PswC’s exit from these nine African countries underscores the firm’s efforts to navigate complex global challenges and restore trust in its brand. As the firm continues to adapt its operations, its commitment to ethical practices and sustainable growth remains central to its strategy.
