Observations: What the Withdrawal of Big Four Auditors From Sub-Saharan Africa Means for Corporate Governance and Shareholders

The International Financial Reporting Standards (IFRS)¹ are the applicable accounting framework in many regions throughout the world. However, global audit firms often export a U.S. influenced compliance and risk management culture worldwide. Stricter governance and audit methodologies of these firms’ international networks, such as the Public Company Accounting Oversight Board (PCAOB)² and the Securities and Exchange Commission,³ are applied. This can create tension in markets where regulatory environments, fees structures, and talent pools are not aligned with the demands of these standards.

This article examines that tension as it manifests in Francophone Sub-Saharan Africa (SSA). Local frameworks like the Organization for the Harmonization of Business Law in Africa (OHADA)⁴ and regional auditing practices differ from the requirements of their multi-national peers. As a result, audit firms in the SSA region are struggling with compliance challenges to meet these global requirements.

Risk Mitigation by Global Auditors and Opportunities for Regional Firms

Present and Upcoming Withdrawals

With the higher exposure to brand integrity, accompanied by burdensome tax and administrative regulations, profitability challenges, and declining margins, some global firms have opted to cease and withdraw their operations rather than maintaining a physical presence in all SSA markets. PricewaterhouseCoopers (PwC) decided to separate from its firms in 10 SSA countries, ending its affiliation with local offices in SSA as of March 31, 2025,⁵ and Ernst & Young (EY) is reportedly preparing to withdraw from the region by April 2026.⁶

Immediate Impacts and Risks

The countries affected are Cameroon, Ivory Coast, the Democratic Republic of Congo (DRC), the Republic of Congo, Gabon, Equatorial Guinea, Madagascar, Chad, Togo, and Senegal. The withdrawal of these firms may expose the region to a mix of risks and opportunities. In terms of risks, the absence of globally recognized auditors may undermine transparency, as companies face inconsistencies in audit quality and reduced external scrutiny.

Compliance costs could rise as firms compensate by strengthening internal controls, engaging multiple local providers, or upgrading governance processes to meet investor expectations. Until reliable and trusted audit structures are fully established, perceptions of financial and operational risk may remain elevated, potentially reducing the region’s attractiveness to international investors who rely on standardized assurance frameworks.

Expanding Capabilities for Local Firms

However, the shift also creates space for local and regional firms to expand their capabilities. Increased investment in talent development, technology, and adherence to international best practices could gradually strengthen the local audit ecosystem. Collaboration among firms, modernization of engagement models, and improved transparency could enhance long-term viability and reduce dependence on global networks.

The region’s audit market has a chance to evolve into a more locally anchored system, provided these improvements materialize. However, even though the exit of EY and PwC creates space for these local firms, Deloitte and KPMG remain established in the region. Their continued presence ensures that while the market is shifting, it is not loosening. Local firms will be competing with the two remaining global firms.

The Outlook for Shareholders

For shareholders, the outlook in the region will likely be shaped by a period of adjustment rather than immediate improvement or deterioration. The withdrawal of several global audit firms introduces uncertainty around audit quality, regulatory oversight, and the consistency of financial reporting, which may sustain elevated risk perceptions in the near term.

Nonetheless, local and regional firms are expected to expand their role, which could gradually stabilize the assurance environment as they invest in skills, technology, and updated methodologies. Regulatory bodies may also respond with progressive reforms aimed at strengthening governance standards, although the pace and effectiveness of these changes will likely vary across markets. Senegal and Ivory Coast, benefiting from a relatively stronger regulatory infrastructure and greater exposure to international investors, could adapt more quickly, though enforcement challenges remain.

Overall, this transition could mark a significant milestone for companies that adapt quickly to maintain credibility with investors, while those that are slower to adapt could face scrutiny until the new audit landscape is fully established. Francophone Sub-Saharan Africa could face a more cautious investment climate, with shareholder value influenced by how effectively individual firms respond to these shifts.

Going forward, shareholders in the region can expect a period of adjustment over the coming months as markets process the operational implications of these audit firm departures, which could lead to greater oversight of financial reporting practices, changes in auditor appointments and increased focus on governance and transparency.

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