Tuesday, February 7, 2012

Deloitte Enters Ethiopian Market

Deloitte Consulting Ltd, one of the four largest global consulting firms, has formed a joint venture arrangement with a local partner, HST Consulting Plc, paving its entrance into the Ethiopian market.
This deal makes Deloitte the second largest consulting firm to come to the Ethiopian market, many years after Ernst & Young established itself, partnering with Zemedeneh Negatu, a US national and certified public accountant (CPA) in that county.
Established with a registered capital of 1.1 million Br, Deloitte plans to give management consultancy, tax advisory, and senior management training services, taking advantage of the market presence of its local partner. HST Consulting Plc, a company owned by Haileluel Tamru (also a US citizen), Solomon Gizaw, and Tekeste Gebru, established with a registered capital of 300,000 Br. Housed inside Mina Building, off Ethio-China Friendship Road, in an area popularly known as Wello Sefer, HST was originally formed to provide audit services for local companies.
The local firm had signed a memorandum of understanding with Deloitte three years after its formation in 2003, and has been working in partnership with it on consultancy contracts largely on tax-related issues.
But, beginning last year, both parties entered into discussions on possible consolidation that would see Deloitte come to Ethiopia in full-fledged manner.
“It took us a year because Deloitte was studying the potential of the Ethiopian market for growth,” a senior partner at HST told Fortune.
The new entity, Deloitte Consulting Plc was granted an investment permit in January 2012, while it is in the process of getting an operation license, sources close to the company disclosed to Fortune.
Established in 1845, Deloitte is headquartered in New York, and employs 182,000 in more than 150 countries. Like its global competitors, it provides audit, tax, enterprise risk, and financial advisory consultancy and services, recording staggering revenue of 28.8 billion dollars in 2011. This ranked the consulting firm second after PricewaterhouseCoopers (PwC), which registered 400 million dollars more in revenue in the same year. PwC, headquartered in London, has offices in 757 cities, across 154 countries, employing over 175,000 people.
Read Full Article from Addis Fortune

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