Deloitte, a prominent member of the big four accountancy firms worldwide, is parting ways with its Zimbabwe business as senior partners prepare to acquire the unit.
The Zimbabwean branch is set to depart from the Deloitte network by October of this year, with Deloitte Zimbabwe emphasizing that this decision was reached collaboratively to better address the distinctive requirements of clients in Zimbabwe.
Following extensive discussions between Deloitte Africa and Deloitte Zimbabwe, Charity Mtwazi, Managing Partner at Deloitte Zimbabwe, acknowledged the upcoming transition as a significant milestone. Mtwazi expressed enthusiasm for the evolution by stating, “With the separation from Deloitte in Zimbabwe, we are embarking on a fresh chapter. We are eager to uphold our legacy of serving Zimbabwean clients, albeit under a different brand. Notably, the team responsible for service delivery will remain unchanged, ensuring continuity and maintaining client confidence.” The decision for local partners to acquire the business enables a more tailored approach to services and offerings that align closely with the local market’s specific requirements.
On a global scale, the big four consultancy firms, Deloitte included, have experienced a slowdown in business activity. The firms, which also encompass KPMG, PwC, and Ernst & Young, have collectively undergone significant job reductions exceeding 9,000 roles in response to subdued market conditions in the US and UK. Deloitte specifically reduced its workforce by 100 positions in the UK this month, following an 800-job cut last September, citing a decline in deal activities.
Given the challenging business climate in Zimbabwe, compounded by limited engagement from multinational corporations, Deloitte’s decision to exit this market aligns with the broader trend among the big four firms to reduce their presence in the region. The high levels of hyperinflation make it particularly arduous for local practices to adhere to the stringent audit standards dictated by global entities. Despite these challenges faced by larger firms, locally-led companies such as BDO and Grant Thornton, originating from Camelsa in 1996, have managed to sustain their operations successfully.
In light of the industry shifts and strategic realignments, it is evident that market dynamics and operational complexities have influenced Deloitte’s decision to transition its Zimbabwe business.
