• Double-digit accumulated fee income rises across tax, consulting, accounting and audit services 
  • Revenues across all service lines increase for third successive year 
  • RSM supports more middle-market business leaders than ever in Africa amid digital transformation 
  • Strong performance in East Africa adds to pan-regional growth 

RSM, the leading provider of assurance, tax and consulting services to middle-market businesses, has today announced annual revenue in Africa surging to US$36.9million, reflecting 29% growth compared to the previous year*. 

The results continue a period of accelerated growth for RSM in Africa, which has seen its fee income in the region leap by 61% since 2020, driven primarily by a 45% increase in demand for consulting services by middle-market organisations. The demand for risk advisory services saw 103% growth as middle market businesses responded to increased governance requirements in the region. A concentrated effort to help businesses to remain competitive in a fast-developing environment IT consulting saw its growth levels jump to 61%. 

Preparations for the Global Minimum Tax, as well as demand from international clients seeking support in navigating changing tax environments, has seen a 19% increase in tax revenues in the region. In addition, statutory audit requirements mean that accounting and audit services remain a core focus for RSM in Africa; accounting for two thirds of revenue with 26% growth. This has contributed to the service line exceeding US$20m for the first time. 

RSM’s strong performance in East Africa was driven by a 33% rise in tax revenue and comes as international businesses increase their investment in the region and require support on incoming transfer pricing rules. 

A strategic merger in South Africa completed in July 2023 contributes to a significantly positive outlook in the region for 2024. 

Clive Betty, Regional Leader for Africa at RSM, commented: “Africa is in a period of significant growth. Increased governance requirements, changing tax legislation and a focus on transfer pricing, as well as greater awareness and desire to implement new technologies, are driving consistent growth across all of our service offerings. 

“Since 2019, RSM revenues in Africa have increased by more than 70%, and this trajectory should continue in line with the region’s economic development. 

“We are well placed to help businesses understand and implement new technologies to remain competitive in this changing landscape. Artificial Intelligence and Machine Learning are becoming bigger areas of focus for the middle-market, and as a result, our solutions have been adapted to suit. This is why our recruitment plans also focus on attracting and developing technologically minded talent.” 

It comes as RSM has announced worldwide revenues of US$9.4* billion for the 12 months to December 2023, a year-on-year growth of 16%*. 

Global fee income for accounting and audit services rose by 15% to US$3.6bn, while RSM’s tax revenues jumped by 17% to US$2.6bn. Consulting revenue totalled US$3.1bn, representing a 16% increase on 2022. 

Since the launch of RSM’s 2030 Global Strategy at the start of 2023, over the past 12 months RSM has established the critical building blocks for ongoing growth, transformation and change, focusing on four Strategic Drivers – People, Clients, Technology and Solutions. With a 13% increase in global headcount, RSM is dedicated to developing an unrivalled, inclusive culture and talent experience, believing investment in both people and technology to be critical to sustained growth and delivering rich, personalised client experiences. Global technology and digital investment increased four-fold over 2023 compared to 2022, over and above the significant technology investments being made by RSM member firms in all territories. 

Jean Stephens, CEO of RSM International, said: “This year’s financial results further cement our status as the leading global provider of professional services to the middle market. Powered by our 2030 Global Strategy - Taking Charge of Change – RSM has worked collaboratively as a global organisation more than ever before to innovate and better serve clients across borders. 

“With an emphasis on the generation and sharing of insight, streamlining the efficiencies and effectiveness of service provision and building connectivity through an enhanced global digital infrastructure, RSM is focused on providing innovative and valuable human insights powered by technology.”

Looking ahead 

The first key milestone of 2024 for RSM is the launch of its evolved global brand – with new visuals and re-energised messaging designed to be more representative of the breadth and depth of the organisation today and to better reflect RSM’s purpose - to instil confidence in a world of change. Continuing to hero their people as the central pillar of their brand, RSM has introduced a new creative device taken from the DNA of its logo. Named the ‘Pattern of Progress’, the device reflects the journey of discovery RSM undertakes to build dynamic and compelling solutions to individual client needs. It symbolises forward movement and the attainment of future goals in an ever-changing complex world, reflecting RSM’s focus on the issues that matter most to its clients and people. 

Among the technological developments underway, January 2024 will see the launch of RSM Luca, the organisation’s digital audit ecosystem, integrating sophisticated technologies and efficient processes to better enable agile, insight-driven, tech-forward audits tailored to client’s unique business environments. 

RSM is also committed to significant additional investment over the year in sustainability frameworks, and the evolution of independence systems and inspections procedures to ensure quality and responsible business practices remain central to RSM’s service provision across all areas. 

Jean Stephens added: “Over 2024, we will undertake a vast number of transformative projects as we continue to harness our global strength and build maximum relevance with our key stakeholders. These financial results support our solid foundation for even greater future growth, ensuring RSM goes from strength to strength as we move forward with confidence, commitment, and energy.”