PwC withdraws from nine African countries in strategic restructuring

PricewaterhouseCoopers (PwC) confirmed last month it has closed operations in nine Sub-Saharan African countries following a strategic review, marking a significant retreat from the continent by one of the world’s “Big Four” accounting firms.

The affected countries include Ivory Coast, Gabon, Cameroon, Madagascar, Senegal, Democratic Republic of Congo, Republic of Congo, Guinea, and Equatorial Guinea, according to a statement published on PwC’s website on March 31.

While PwC’s official announcement did not specify reasons for the withdrawal, the Financial Times reported that mounting differences with local partners contributed to the decision. According to the report, these partners claimed they lost over a third of their business in recent years due to pressure from PwC’s global executives to drop clients deemed too risky.

The FT, citing a register of PwC entities and local news reports, indicated that PwC has also severed ties with member firms in Zimbabwe, Malawi, and Fiji. The publication suggested that countries were deemed “too small, risky or unprofitable” to maintain operations.

This African restructuring comes amid broader global challenges for PwC, which operates as a network of locally owned partnerships. The firm has faced significant regulatory scrutiny in multiple markets, including a $62 million fine and six-month suspension for its mainland China unit over audit failures related to property developer China Evergrande’s $78 billion fraud case.

Just last month, British regulators imposed a $6 million fine on PwC for issues related to its audit of Wyelands Bank.

The accounting giant has also been working to repair relations with Saudi Arabia after the kingdom suspended activities between its $925 billion sovereign wealth fund’s holding company and PwC.

These exits from African markets represent the latest development in what has been a challenging period for the firm, which has seen client departures and staff reductions across various countries since last year.