In a significant shift for one of the “Big Four” global professional services firms, PricewaterhouseCoopers (PwC) has announced its withdrawal from nine African countries after a thorough strategic review. The firm revealed on its official website that it has ceased operations in Côte d’Ivoire, Gabon, Cameroon, the Democratic Republic of Congo (DRC), Republic of Congo, Madagascar, Republic of Guinea, Senegal, and Equatorial Guinea. This move, effective from March, signals a pivotal change in PwC’s footprint across the continent.
The decision to exit these markets has raised eyebrows, particularly in light of ongoing challenges within the region and the firm’s recent reputation battles globally. Although PwC did not comment on specific reasons behind the withdrawal, industry insights suggest that growing tensions with local partners played a crucial role. The Financial Times reports that local partners in these regions accused PwC of driving them towards untenable operational frameworks, resulting in a loss of more than a third of their business as a consequence of the firm’s stringent risk management approach.
Nadine Tinen, previously PwC’s senior partner for francophone Africa, reflected on the firm’s evolving stance, stating, “PwC became more risk averse than in the past, and we can understand that. When you look at the benchmarks of risk related to transparency and corruption, you will always find countries in francophone Africa. It’s not new.” This encapsulates the underlying sentiment around PwC’s risk-averse strategy and its implications for operations in these challenging markets.
The decision comes on the heels of a tumultuous period for PwC worldwide, marked by scandals that have significantly tarnished its global reputation. In China, the firm faced a six-month suspension and a hefty $62 million fine for its alleged role in the massive $78 billion financial crisis surrounding property developer China Evergrande, where it was accused of “concealing or condoning” fraudulent practices. Similarly, in the UK, PwC was fined £4.5 million for its disastrous audit of Wyelands Bank in 2019, and the firm has dealt with further controversies in Australia concerning the misuse of confidential government information by a tax partner.
Mohamed Kande, the global chairman of PwC who took office in July, lamented that the firm’s performance had fallen “well below our high expectations and was completely unacceptable,” suggesting an urgent need for a recalibration of its operational strategies.
Furthermore, PwC’s shift is not isolated to these African countries. The company has reportedly severed ties with member firms in Zimbabwe and Malawi, as well as in Fiji, indicating a broader effort to detach from markets the firm deems too small, risky, or unprofitable. This trend presents a grim picture for Sub-Saharan Africa, where the challenges of political instability and climate-related disruptions led to an estimated loss of $10 billion in foreign direct investment in 2024, according to SBM Intelligence.
As PwC scales back its operations in Africa, it leaves behind a complex landscape marked by both opportunity and significant risk, raising questions about the future of its clients in the region and the potential implications for the financial services sector at large.