By Nadia Hamilton CTA, Partner and tax expert at M&H Consulting Africa.
At the end of March, the world of finance and consulting was shaken by a resounding announcement: PwC decided to withdraw its brand from its French-speaking subsidiaries, established notably in Ivory Coast, Cameroon, and several other countries in the region.
This withdrawal marks a real earthquake in the audit and consulting sector. Indeed, it is the leading French-speaking firm in terms of market share, both in audit and consulting, and the oldest in terms of establishment in the region. PwC had established itself as an essential reference, author of numerous reference works and a privileged partner of large local and international companies.
The announcement raises many questions. What does it concretely mean to “withdraw its brand” from its own subsidiaries, especially approaching the end of the financial year? How should client companies, especially multinationals, organize themselves to ensure the continuity of their audits, knowing that the PwC brand is often perceived as a guarantee of rigor and reliability?
Finally, what message does this departure send to international investors, as the African continent seeks to attract more opportunities? For many, this decision recalls the gradual withdrawals once made by some large foreign banks.
Implications of the withdrawal of the PwC brand
Few information is available on the causes and especially the impact of this separation on employees and their clients. No one can doubt that this decision has had significant consequences for some of them.
However, it is important to ask about the nature of the separation. Indeed, the withdrawal of the PwC brand means that local subsidiaries can no longer operate under the name of the international giant. This implies a name change for the local subsidiary, and therefore, this must be corrected in current contracts as well as in the legal documentation of client companies. What about the audit mission that spans several years? Should the deputy auditor be given a place to cover the period? Furthermore, should the parent company PwC guarantee these missions signed over several years, or should the new entities have to “negotiate” each contract renewal with the corresponding guarantees?
In any case, this poses new major legal and tax challenges for some of the main local players in a difficult global context. Should we really worry about this in the medium and long term for the development of West Africa, especially in the French-speaking region? Looking at the economic boom that the region is experiencing, the departure of the English firm seems, in some respects, almost anecdotal.
West Africa maintains its course
The potential of Africa, and more particularly of French-speaking West Africa, is real. It is generally in adversity that the best talents and most flourishing opportunities are revealed.
Certainly, this situation as well as the departure of European banks from French-speaking Africa send signals of lack of confidence from major international groups.
However, it is important to set goals aiming for the light at the end of the tunnel. This translates into many opportunities that the African market represents.
Ivory Coast as a symbol of regional dynamism
Take the case of Ivory Coast, which has stood out for several years as a new “African Dragon”. The discovery of oil and gas as well as gold and manganese consolidates a well-established growth trajectory.
Whether it is the boom in high tech, especially in the banking sector where the majority of the unbanked population turns to electronic money, or the numerous tax incentives granted to industries in the agricultural, energy, or digital sectors, Ivory Coast wants to give itself the means for its growth and ambitions.
It should be noted that trust is a key factor for economic operators. This can also be demonstrated by the multiple fundraising efforts that Ivory Coast has been able to secure in recent months.
And the numbers speak for themselves. Ranked among the countries with low risk according to the Bloomfield Intelligence “Risk Country 2025” report, Ivory Coast confirms its role as the economic locomotive of West Africa. With an overall score of 6.3/10, the country remains firmly anchored in the confidence zone of investors. This stability is supported by remarkable macroeconomic performance (8.1/10).
These indicators reflect a resilient economy, driven by strong fundamentals, offering a favorable environment for sustainable investments.
The departure of actors of the caliber of PwC will certainly not be without consequences. However, it is essential to maintain the existing economic optimism, with lucidity and realism of course. Resilience has always been the motto of African economies… Let’s stay the course!
