As African economies navigate a landscape marked by global challenges and transformative opportunities, the KPMG 2024 CEO Outlook’s inaugural African edition reveals a powerful vision from the continent’s business leaders. African CEOs are embracing resilience, ethical technology integration, and inclusive growth strategies—key pillars that align with 67CEOS Foundation’s mission to foster sustainable entrepreneurship across Africa. This groundbreaking report offers insights into how African CEOs are tackling pressing issues while positioning their organisations for long-term growth and impact.
KPMG’s inaugural Africa edition of the 2024 CEO Outlook Survey reveals an optimistic yet strategic approach among African CEOs, underscoring their confidence in growth despite global economic uncertainties. Drawing insights from over 130 CEOs across Southern, East, and West Africa, the survey sheds light on CEOs’ investment priorities, risk management, and evolving business strategies that blend resilience with technological and environmental foresight.
Top Concerns and Growth Strategies
The survey identifies technology and generative AI, talent management, environmental, social, and governance (ESG) considerations, and geopolitical tensions as the foremost challenges for African CEOs. With a strong emphasis on ethical practices, 77% of African CEOs highlight ethical dilemmas surrounding technology and AI as a top concern, reflecting their commitment to responsible innovation and technology use. Additionally, CEOs are increasingly focused on developing governance models and transparent practices to address these challenges.
Regional Economic Outlooks
- East Africa anticipates a 5.1% economic growth rate in 2024, though CEOs are taking a conservative stance on mergers and acquisitions (M&A) due to currency fluctuations and economic instability.
- West African CEOs remain optimistic, though their confidence has slightly declined amid regulatory and operational risks. They emphasise agility, resilience, and the adoption of generative AI to enhance customer experience and counter inflationary pressures.
- Southern Africa highlights concerns over economic decoupling and pricing pressures, with cybersecurity and disruptive technologies as additional priorities.
The Geopolitical Landscape
Global geopolitical dynamics continue to exert pressure on CEOs, influencing trade, energy security, and inflation. Stefano Moritsch, KPMG’s Global Geopolitics Lead, explains that these shifts compel organisations to reassess priorities, focusing on resilience over efficiency. CEOs are advised to adopt proactive strategies to navigate these complexities and leverage emerging opportunities.
Embracing Generative AI and Technological Change
Generative AI stands out as a key focus area, with African CEOs aiming for responsible deployment that balances innovation with workforce upskilling. Approximately 78% of CEOs see AI as instrumental in transforming their IT functions, and 43% express confidence in their current cybersecurity measures. However, they also recognise the need to enhance cybersecurity readiness to mitigate AI-specific threats, underscoring the potential of AI to drive growth across industries.
Workforce Dynamics and Talent Investment
African CEOs are largely advocating for a return to full-time office work, with 86% supporting in-office work over remote setups. Concurrently, they acknowledge the critical importance of nurturing young talent as 89% point to the challenges posed by an aging workforce. Although there is an inclination towards investing in technology, African CEOs are increasingly recognising the need for talent development to ensure long-term sustainability.
ESG and Future Sustainability
While ESG remains a global priority, African CEOs view it with a region-specific lens. There is a growing focus on the risks posed by misinformation and reputational issues, especially in East Africa. However, only 32% of African CEOs feel confident in meeting 2030 Net Zero targets, citing hurdles like technological limitations, skill gaps, and the complex nature of decarbonising supply chains. Nonetheless, the alignment of ESG with digital transformation is viewed as a critical value creator for African businesses.
As KPMG Africa Chairman Ignatius Sehoole highlights, African CEOs are resilient and innovative, poised to navigate universal challenges with a solutions-oriented approach. This inaugural survey underscores the collective strength and adaptability of African CEOs, who are positioned to drive sustainable growth across the continent in an increasingly complex global environment.
This article was first published on KPMG.
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