The Accounting Industry in South Africa 2025

This report on the accounting sector in South Africa includes information on the size and state of the sector, and issues such as reputational damage and measures to strengthen governance and oversight, compliance, public sector financial management and the shortage of professionals. There is information on opportunities, key trends, notable players, corporate actions, and influencing factors including the economic environment, environmental issues and technology and innovation. The report includes profiles of 19 companies including major players such as Deloitte, EY, PwC, KPMG, BDO, Forvis Mazars and BDO, and public entities such as the Auditor-General.

Introduction

• Despite significant challenges, including high-profile financial scandals that have tarnished its reputation, the accounting sector continues to perform a critical role in safeguarding the financial integrity of institutions.
• Measures to strengthen oversight and ensure accountability are helping to restore confidence in the profession.
• The retention of accountants and auditors remains a concern.
• Companies are increasingly using accounting technologies, including AI, to improve efficiencies.
• Although the sector remains under pressure, there are indications that demand for accounting services is increasing.

Market Trends

• Accountants are increasingly taking up opportunities as business consultants and advisors.
• Accounting firms are increasingly using technology to automate financial data processing to lower costs and improve productivity.
• Firms are increasingly implementing interventions to retain top employees.
• Focus on ESG auditing.
• Regulatory changes are aimed at improving audit quality, transparency, corporate governance, and auditor independence.

Market Opportunities

• Automating routine processes.
• Business consulting and business advisory services in areas like financial planning, risk management, and compliance.
• Providing specialised accounting and advisory services in areas such as ESG reporting, forensic auditing, and business restructuring and business rescue.
• Technological advancements are creating possibilities for greater innovation and efficiency.

Market Challenges

• Fraud, financial irregularities and the continuing decline in the quality of accounting in the public sector.
• The sector’s high level of exposure to financial crimes, resulting in reputational damage, lower levels of trust in the industry and increased regulatory scrutiny, with many young professionals reluctant to enter or remain in the profession.
• The shortage of skilled professionals, notably auditors, with a growing number emigrating or choosing other career paths. The shortage is compounded by low pass rates for the professional board exams.

Market Outlook

• The sector is grappling with reputational damage, an evolving regulatory landscape, technological disruption and a shrinking pool of accountants and auditors.
• These challenges also present opportunities for renewal and growth.
• Demand for ESG auditing is expected to increase significantly and be a key driver of growth over the medium-term.
• There are growth opportunities in areas such as forensic auditing, business restructuring and business rescue.
• Automation and AI are set to play an increasingly prominent role, improving productivity, efficiency and profitability.
• Stronger regulatory oversight and a focus on the need for ethical, transparent and accountable reporting will continue to support sector recovery.