African CEOs Embrace Optimism and Strategic Transformation
Despite global economic uncertainty and geopolitical tensions, African CEOs are showing a strong sense of optimism regarding their organizations’ growth prospects for this year. This confidence is evident in the KPMG 2025 Africa CEO Outlook Survey, which highlights a significant increase in business confidence compared to previous years.
The survey, which included responses from 130 CEOs across all regions of the continent, found that 78% of them expressed strong business confidence, a rise of over 12% year-on-year. Moreover, 98% of these leaders expect their businesses to expand over the next three years. This level of optimism reflects a pragmatic leadership approach, as African CEOs are actively investing in future growth through strategies involving artificial intelligence (AI), talent development, and sustainable practices.
Rising Confidence and Strategic Shifts
According to Ignatius Sehoole, KPMG South Africa and CEO of KPMG One Africa, the results of this year’s survey indicate a confident and pragmatic mindset among African leaders. They are not only adapting to global challenges but also taking proactive steps to secure their organizations’ futures.
The survey also reveals an increasing appetite for mergers and acquisitions (M&A) on the continent. Specifically, 86% of African CEOs plan to pursue acquisitions in the next three years, up from 77% in the previous year. This trend suggests a growing willingness to consolidate and expand operations amid uncertain economic conditions.
Confidence in domestic economies is also on the rise, with 63% of African CEOs expressing optimism about their country’s growth prospects, an increase from 61% in 2024. Despite facing similar global challenges such as technological disruption, inflationary pressures, and geopolitical tensions, African CEOs have identified three key challenges they must address: integrating AI into core operations, managing regulatory pressures, and strengthening cybersecurity.
The Rise of Artificial Intelligence
Artificial Intelligence has emerged as the top strategic priority for African CEOs heading into 2026. According to the report, 71% of top executives are investing in AI to drive operational efficiency and long-term resilience. Additionally, 26% plan to allocate more than 20% of their annual budget to AI, nearly double the global average of 14%.
This high level of investment by African CEOs, despite declining economic optimism, signals a shift in mindset. In West Africa, 65% of CEOs view AI as both a tool for future growth and an immediate lever for operational efficiency. Similarly, 40% in East Africa and 38% in Southern Africa share this perspective.
However, infrastructure gaps continue to hinder the progress of technology and AI adoption in Africa. Many organizations still face unreliable power supply, limited broadband connectivity, and outdated computing systems that restrict the use of data-intensive AI solutions. Furthermore, 96% of CEOs cite data readiness as a challenge, emphasizing the need for local data curation and infrastructure investment.
Cybersecurity and Digital Resilience
African leaders are taking pragmatic steps to enhance cybersecurity and digital resilience. According to the report, 45% of CEOs prioritize these investments, followed by 40% focusing on AI integration across workflows. Another 34% are investing in immediate, scalable technology and solution innovation.
Joelene Pierce, CEO Designate of KPMG South Africa, notes that deploying and scaling AI presents three options for African organizations: build, buy, or partner. Each organization must carefully weigh the pros and cons of these approaches.
Interestingly, concern about the risks posed by quantum computing to encryption remains low across the three regions. In West Africa, 14% of CEOs express concern, while 22% in Southern Africa and 35% in East Africa show similar levels of worry. These low numbers highlight a critical vulnerability as African economies increasingly rely on digital systems and cross-border data exchange.
Talent Development and ESG Commitment
East African CEOs are leading the way in hiring new talent with AI and tech capabilities, with 62% of them prioritizing such hires. Southern African CEOs also place a strong focus on these areas.
In addition, the report shows that African CEOs remain committed to environmental, social, and governance (ESG) goals, despite regulatory complexity. 79% of them express confidence in their ability to navigate ESG regulations across markets. However, only 51% prioritize compliance and reporting standards to meet investor and regulatory demands, lagging behind global CEOs, who stand at 77%.
Benson Ndung’u, CEO of KPMG East Africa, emphasizes that CEOs worldwide, including those in Africa, recognize the importance of ESG within their organizations. They are implementing diverse strategies for sustainability in response to evolving market demands.