Deloitte Zimbabwe, one of the leading professional services firms in the country, has announced its exit from the global Deloitte network as part of a management buyout. The move, which will take effect by October 2024, will see the local partners taking over the business and rebranding it under a different name.
The decision to part ways with the multinational network was based on the need to better serve the unique needs of clients in Zimbabwe, according to Charity Mtwazi, the managing partner of Deloitte Zimbabwe. She said the buyout will allow the firm to tailor its services and offerings more closely to the specific requirements of the local market while maintaining the same team and quality standards.
“With the exit of Deloitte in Zimbabwe, we will be ushered into a new phase. We are excited to continue our legacy of serving clients in Zimbabwe, but under a different brand. Importantly, the team responsible for service delivery remains the same, ensuring continuity and client trust,” Mtwazi said in a statement.
Deloitte Zimbabwe has been operating as part of Deloitte Africa, a member of the global Deloitte network, which provides audit, tax, consulting, financial advisory and risk advisory services to clients across various sectors. The firm has been one of the top choices for many listed and unlisted companies in the country, as well as public sector entities and non-governmental organisations.
However, the firm has faced challenges in recent years due to the volatile economic environment in Zimbabwe, which has made it difficult to comply with the rigid audit standards and reporting requirements of the global network. The hyperinflationary situation, the currency instability, the low foreign direct investment, and the impact of the COVID-19 pandemic have also affected the demand for professional services in the country.
Deloitte Zimbabwe is not the only member of the big four accountancy firms to exit the Zimbabwean market. In 2019, KPMG Zimbabwe also severed ties with its global network and rebranded as NEXIA KPSG, citing similar reasons. The other two members of the big four, PwC and EY, are still operating in the country, but have also scaled back their business in recent years.
The exit of Deloitte Zimbabwe from the global network is also part of a broader trend of multinational companies divesting from Zimbabwe or reducing their exposure to the country, due to the unfavorable business climate and the high political and economic risks. Last year, Standard Chartered Bank, one of the oldest and largest banks in the country, closed its operations in Zimbabwe, as part of its global strategy to focus on more profitable markets.
Despite the challenges, some local professional services firms have managed to survive and thrive in the Zimbabwean market, by offering more flexible and affordable solutions to their clients. Some of the locally-led firms that have established a strong presence in the market include BDO Zimbabwe, Grant Thornton Zimbabwe, Baker Tilly Zimbabwe, and PKF Zimbabwe.
Mtwazi expressed optimism that the newly-structured firm will be able to retain its clientele and attract new business, as it leverages its local expertise and experience. She also thanked Deloitte Africa for its support and collaboration over the years and said the firm will continue to uphold the values and principles of the Deloitte brand.
“We are grateful to Deloitte Africa for the partnership and support we have enjoyed over the years. We remain committed to delivering excellence, integrity, and innovation to our clients, as we embark on this new journey,” she said.
The statement did not disclose the financial details of the buyout, nor the new name of the firm. However, it said the transition will be completed by October 2024, and the firm will communicate the changes to its stakeholders in due course.
Source: Bulawayo24 News
