PwC has released the 8th edition of the Africa Business Agenda. The report is based largely on findings from the audit firm’s 24th Annual Global CEO Survey, which saw participation from about 1,779 respondents in 100 countries, including 50 CEOs in 14 African countries. Checks by Business Elites Africa showed that the CEO survey was characterised by positive sentiments of anticipated economic rebound post pandemic. However, some challenges still abound, mainly due to uncertainties bothering on possible over-regulation by governments, cyber threats and tax policy concerns.
See the Key Takeaways from the Survey below
About 68% of African Chief Executive Officers who participated in the survey believe that global economic growth will improve in 2021. This is more than the percentage of CEOs who expressed similar optimism in 2020. Note, however, that this optimism of a global economic rebound does not necessarily translate to short-term economic prospects for the companies of these African CEOs. As a matter of fact, only about 30% of them expressed confidence about their company’s growth prospects in the next 12 months.
More on the Muted Confidence: African CEOs of companies in the hospitality, leisure, transportation and logistics sectors were among those with the lowest confidence levels. According to the survey findings, these CEOs believe it will take about three years to fully recover from the economic impacts of the pandemic.
Meanwhile, CEOs of companies in tech, healthcare and telecom expressed very high confidence with regards to short term recovery expectations. It should be noted that the pandemic mostly accelerated the above-named sectors, hence their high confidence levels.
Focus on Operational Efficiencies: In the meantime, 64% of African CEOs said they are putting in place structures that will not only ensure operational efficiencies but also result in organic growth. In the same vein, African CEOs are changing their investment plans to keep pace with the changing environment.
You may read the rest of the report by downloading it right here.
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