PwC has shut down operations in over a dozen countries, including nine in Sub-Saharan Africa.
- PwC shut down operations in over a dozen countries, including nine in Sub-Saharan Africa
- The firm is facing mounting reputational and regulatory challenges across multiple regions
- The decision to withdraw from African markets was influenced by factors like political instability and climate-related disruptions
PwC’s decision to shut down operations in the affected African markets is part of a strategic overhaul aimed at reducing risk and avoiding potential scandals.
The decision follows internal tensions, with some local leaders citing financial losses after being urged by global executives to cut ties with high-risk clients.
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According to a statement published by the firm, the affected markets include Ivory Coast, Gabon, Cameroon, Madagascar, Senegal, the Democratic Republic of Congo, Republic of Congo, Guinea, and Equatorial Guinea.
The firm, which operates as a global network of locally owned partnerships, described the move as part of a broader strategy to streamline operations and focus on markets with long-term growth potential.
Inquiries by Reuters about the closures were met with a reference to the official statement, following a Financial Times report that the firm had pulled out of countries deemed too small, risky, or unprofitable.
A source familiar with the matter told the Financial Times that PwC is dropping smaller member firms that could pose reputational risks or lack the capacity to meet global compliance standards.
PwC battles growing global scandals
PwC has been grappling with mounting reputational and regulatory challenges across multiple regions.
The firm is currently under increased scrutiny following a series of high-profile failures and sanctions.
In China, PwC received a six-month suspension and a $62 million fine after regulators found the local affiliate had concealed or condoned fraudulent practices tied to China Evergrande’s $78 billion financial scandal.
The fallout led to a wave of client departures. Similarly, in the UK, the Financial Reporting Council fined PwC £4.5 million over its flawed 2019 audit of Wyelands Bank.
Global chair Mohamed Kande, who took over in July, has been navigating the aftermath of these crises, which have touched some of PwC’s largest national member firms.
The firm has also faced scandal In Australia which erupted when a tax partner was found to have misused confidential government information, sparking political outrage and again prompting intervention from global leadership.
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PwC has also been barred from working with Saudi Arabia’s sovereign wealth fund for a year, further straining the firm’s standing in key markets.
These internal and external pressures come at a time of heightened economic uncertainty, particularly in Sub-Saharan Africa.
A report by SBM Intelligence estimates the region lost roughly $10 billion in foreign direct investment in 2024 alone, driven by political instability and climate-related disruptions—factors that likely influenced PwC’s recent decision to withdraw from nine African markets.
