Charting a new course for South Africa’s accounting profession
South Africa’s accounting profession is navigating a challenging environment shaped by political infighting, economic stagnation and regulatory change, reports the IAB. Firms are under pressure to expand capabilities, manage rising compliance demands and meet client needs—all while facing fee resistance and a shortage of skilled professionals.
Earlier in the year, Partner Abraham Petersen from member firm MGI Bass Gordon, and Tshegofatso Mahuma, CEO at member firm MGI RAS, joined the IAB discussion, sharing their views on how medium-sized firms in South Africa are adapting to regulatory reform, growing client expectations and the need to remain agile in a shifting economy.
Reform meets resistance
While the coalition government has fostered a more business-friendly atmosphere, divisions have slowed real reform. Regulatory shifts—such as new retirement fund rules and enhanced compliance frameworks—are reshaping client needs.
Abraham comments:
“There remains demand for high quality services with a personal touch, especially for medium-sized audit firms. Medium-sized firms who are strategically positioned stand to benefit significantly if they can adapt by embracing innovation, diversifying their services, and investing in talent development.”
“Over the next twelve months, medium-sized accounting firms can expect to see a rising demand for tax advisory and planning, business restructuring and rescue, and forensic services driven by economic pressures and tighter regulations." He adds, "New tax laws and stricter audit standards are increasing compliance workloads, requiring firms to stay sharp, proactive and agile.”
Collaboration and agility lead the way
To compete, many mid-sized firms are strengthening international affiliations and service offerings. Tshegofatso notes:
“Mid-sized and niche firms are joining international networks to enhance credibility, service offerings and cross-border capability. This trend is expected to continue as firms seek to compete with the larger players through collaboration rather than consolidation.”
“We expect 2025 to be a pivotal year for the profession in South Africa. Upcoming developments include further rollout of ESG compliance frameworks, the implementation of digitised procurement audits in the public sector, and increased focus on sustainability assurance. Firms that are agile and technology-enabled will thrive in this environment.”
South Africa’s economic vulnerabilities remain significant, with infrastructure challenges and high youth unemployment holding back growth. The accounting profession can only hope to future-proof itself as the country looks to its leaders for decisive action.
To read the full article in the IAB, members can click HERE (login to the MGI Worldwide member portal will be required).
Click the links for more information about our contributing member firms, MGI Bass Gordon, and MGI RAS.
MGI Worldwide is a top 20 ranked global accounting network and association with over 8,800 professionals, accountants and tax experts in some 440 locations in almost 100 countries around the world.