Despite global economic headwinds and geopolitical uncertainty, African chief executives remain upbeat about their growth prospects, according to the KPMG 2025 Africa CEO Outlook Survey.
The report, which captured the views of 130 CEOs across East, West, and Southern Africa, reveals that 78 percent of leaders express strong business confidence, marking a 12 percent year-on-year rise. Nearly all respondents (98 percent) expect their organisations to expand within the next three years, while 86 percent plan to pursue mergers and acquisitions, up from 77 percent in 2024.
“This year’s results reflect a confident and pragmatic leadership mindset across the continent. African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies,” said Ignatius Sehoole, CEO of KPMG South Africa and KPMG One Africa.
Technology and AI Drive Transformation
Artificial intelligence has become a strategic priority, with 71 percent of African CEOs investing in AI to boost efficiency and resilience. A quarter of them plan to allocate over 20 percent of their annual budgets to AI—almost double the global average. However, challenges such as unreliable power supply, limited broadband, and poor data infrastructure remain major barriers to implementation.
“Each organisation must weigh the pros and cons of building, buying, or partnering for AI solutions. There is no one-size-fits-all approach,” said Joelene Pierce, CEO Designate of KPMG South Africa.
Focus on People and Skills
The survey highlights that 81 percent of CEOs believe upskilling in AI will directly impact their success. Most are either redeploying staff into AI-enabled roles or hiring new talent with digital expertise. East Africa leads in hiring new AI and tech talent, while West Africa is ahead in redesigning roles to integrate AI.
“The qualities required for effective leadership are rapidly evolving. Today’s CEO must embrace digital and AI literacy, lead cultural transformation, and demonstrate agility,” said Tola Adeyemi, CEO of KPMG West Africa.
ESG Remains a Priority
Environmental, social, and governance (ESG) commitments also remain strong. Seventy-nine percent of CEOs expressed confidence in managing ESG regulations, with 74 percent using AI to reduce emissions and improve energy efficiency. However, confidence in meeting new reporting standards trails the global average, as many leaders cite decarbonisation and regulatory complexity as top challenges.
“CEOs across Africa continue to recognise the importance of ESG and are implementing diverse sustainability strategies to meet evolving market demands,” noted Benson Ndung’u, CEO of KPMG East Africa.
The 2025 KPMG Africa CEO Outlook underscores a continent on the rise, defined by resilience, innovation, and purpose-driven leadership, as executives position their organisations for sustainable growth in a rapidly changing global environment.
