- Strategic focus on risk management and corporate governance continues in the region
- Digital transformation in African businesses drives 42% IT consulting growth
- Audit services grow by 18% as anti-corruption and compliance measures take hold
- Results announced in tandem with new global growth strategy
RSM, the leading provider of assurance, tax and consulting services to middle market businesses, has announced an increase of 10% in annual revenues in Africa.
The results continue a period of rapid growth for the network, which has seen its fee income on the continent leap by 14% in the last two years, driven primarily by demand for audit and consulting services by mid-market businesses.
RSM’s IT consulting services recorded growth of 42% in Africa last year, driven by the accelerating digital transformation of many consumer-facing businesses on the continent in the last 12 months. The region aspires to become a cash-less society with the value of digital payments projected1 to pass USD 227bn by 2027.
As African governments’ anti-corruption agencies increase scrutiny on corporate governance and companies continue to increase their presence in Africa, RSM saw a rise of 18% in audit services in 2022. Firms in the region have embraced the power of data analytics to enhance the efficiency and quality of audits. Risk advisory fees have also risen in 2022 by 16% as companies seek to better manage their risks and improve their cyber defenses.
An M&A boom in 2022 across Africa saw RSM’s corporate finance and financial due diligence services grow year-on-year by 86%. The total2 value of M&A investments made by African companies in 2022 surged, growing from almost $6billion in 2017 to nearly $14billion in 2022. Sectors including energy, mining and utilities recorded the largest investment value at $7.7billion, with pharmaceutical, medical and biotech companies almost as active at $5.1billion.
Clive Betty, Africa Regional Leader of RSM International, said:
“The COVID crisis acted as a catalyst for dramatic change across Africa as the disruption forced corporations to evaluate the way they conduct business and new opportunities for growth. A boom in digital payments and solutions and M&A activity has helped to drive economic recovery, whilst more businesses have embraced technological solutions to connect them with global consumers and supply chains. Alongside the growth opportunities comes heightened risk and business leaders in the region are shifting their mindsets to a more risk-based approach. This can mean strengthening their risk management systems and cyber defences and relying on quality audits to create greater transparency.”
2030 Global Strategy marks new era for RSM
Launched this month, RSM’s 2030 Global Strategy outlines a major multi-year growth and transformation programme that targets 100% growth in revenue by 2030. Through the Strategy, RSM will make increasing use of global, digital delivery models, enhanced insight generation and wider use of automation, big data, machine learning and artificial intelligence to support businesses through change.
RSM’s Strategy will further unite its firms under common international methodologies and structures that enable it to continue to drive service quality and promote responsible business practice, whilst constantly enhancing agility and innovation. With an ever-increasing global client base of growth-orientated, internationally-minded companies, RSM remains focused on ensuring they receive exceptional client-service, expert human insight powered by technology, and compelling, tailored solutions.
The strategy will see significant investment in talent and will transform RSM into a seamless global organisation, with teams, culture, governance and processes actively aligned across borders to empower both clients and RSM people to achieve their ambitions.
Clive Betty added:
“Our growth in Africa is aligned to growth in the rest of the RSM network, as we support businesses through their continued development and expansion. Our exciting new strategy will enable us to further develop our transformation into a data-driven, technologically enabled, international organisation that will benefit our clients.”
Jean Stephens, Chief Executive Officer of RSM International, said:
“We have entered a new and transformative business age, characterised by data-driven technological products and services, new approaches to working, and a clear focus on sustainability and purpose. Our growth has largely been driven by our ability to meet those challenges effectively. Our mantra as an organisation is to ‘Take Charge of Change’. By building deep, long-standing relationships and giving our clients and our people what they need to make confident decisions, we will help them to be more successful. As an organisation, our own accelerated transformation will ensure our growth continues at pace, instilling within all of our clients and colleagues a fundamental confidence to thrive.”