PwC to leave Zimbabwe as Deloitte exit sets industry precedent – ​​The Zimbabwe Mail

May 6, 2024 Vaseline stjohnson 0


HARARE – PriceWaterhouseCoopers (PwC), one of the world’s largest accounting firms, is set to withdraw from Zimbabwe by the end of this year, according to a Business Times report.

This move closely follows the recent departure of Deloitte Africa from the country. Deloitte Zimbabwe subsequently underwent a rebrand, now known as Axcentium, following a management buyout.

The revelation of PwC’s impending exit emerged after Nampak Holdings Zimbabwe, the country’s largest packaging company, announced plans to convene an Extraordinary General Meeting (EGM) on May 23, 2024. The purpose of the meeting is to select new auditors to replace PwC, which has been its external auditor for an extended period.

In a notice to its shareholders, Nampak group secretary Keith Nicholson revealed that PwC Africa was withdrawing from its operations in Zimbabwe. Interestingly, Nampak’s board of directors has proposed the appointment of Axcentium, formerly known as Deloitte Zimbabwe, as new auditors.

The notice said: “The Board sees no value in engaging PwC Zimbabwe’s successor company for the audit in the future.”

When asked for comment, Clive Mukondiwa, managing partner of PwC Zimbabwe, stated: “I will get back to you as soon as possible. Please be patient with me.”

This development comes amid a global slowdown in the businesses of the big four accounting firms, namely KPMG, PwC, EY and Deloitte. These companies have collectively eliminated more than 9,000 jobs in their largest markets in the United States and the United Kingdom through several rounds of layoffs.

In recent years, the big four have reduced their operations in Zimbabwe, partly due to a decline in consulting work within the country. Additionally, Zimbabwe’s hyperinflationary environment presents challenges for local practices to meet the strict auditing standards demanded by global companies, according to expert analysis.

PwC’s departure from Zimbabwe, along with Deloitte’s departure and subsequent rebranding, underlines a changing landscape within the country’s accounting industry, potentially signaling broader changes in the dynamics of the sector.