Accounting giant PwC has announced its exit from 9 Sub-Saharan African countries, including Senegal, Cameroon, and the Democratic Republic of Congo, as part of a strategic overhaul aimed at reducing risk and avoiding potential scandals. The move comes as the firm faces mounting reputational and regulatory challenges across multiple regions.

The decision to withdraw from these African markets is influenced by factors such as political instability and climate-related disruptions, which have led to a decline in foreign direct investment in the region. According to a report by SBM Intelligence, Sub-Saharan Africa lost roughly $10 billion in foreign direct investment in 2024 alone.

PwC's exit from these countries is part of a broader strategy to streamline operations and focus on markets with long-term growth potential. The firm, which operates as a global network of locally owned partnerships, described the move as a necessary step to reduce risk and avoid potential scandals. 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.

The firm has been grappling with reputational and regulatory challenges across multiple regions, including China, the UK, and Australia. 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. Similarly, in the UK, the Financial Reporting Council fined PwC £4.5 million over its flawed 2019 audit of Wyelands Bank.

In Australia, a tax partner was found to have misused confidential government information, sparking political outrage and prompting intervention from global leadership. 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.

The exit from these African countries is likely to have significant implications for the region's economy, particularly in the context of declining foreign direct investment. The move may also have a ripple effect on the accounting industry as a whole, as other firms may be forced to re-evaluate their operations in high-risk markets.

Despite the challenges, PwC's global chair, Mohamed Kande, remains committed to navigating the firm through these crises and restoring its reputation. The firm's decision to exit these African markets is a significant step towards achieving this goal, but it remains to be seen how the move will impact the region's economy and the accounting industry as a whole.