Despite persistent global economic headwinds and geopolitical uncertainty, African business leaders are expressing renewed optimism about growth in 2025, according to a new survey by KPMG.
The KPMG 2025 Africa CEO Outlook Survey, released on Wednesday, shows that 78 per cent of the 130 business leaders surveyed across the continent remain confident about their companies’ growth prospects, marking a 12 per cent increase from last year.
A striking 98 per cent of respondents expect their businesses to expand over the next three years, signalling a strong rebound in executive confidence.
“This year’s findings reflect a confident and pragmatic leadership mindset across the continent. African CEOs are not merely responding to global pressures but are deliberately investing in AI, talent development, and sustainable growth,” said Ignatius Sehoole, CEO of KPMG South Africa and KPMG One Africa.
The study, now in its 11th year, also highlights growing enthusiasm for mergers and acquisitions, with 86 per cent of CEOs planning to pursue deals within the next three years, up from 77 per cent last year. Confidence in local economies has also edged up, with 63 per cent expressing optimism about domestic growth, compared to 61 per cent in 2024.
Even so, African executives continue to grapple with global challenges such as technological disruption, inflation, and political instability. The top concerns identified include integrating artificial intelligence (32 per cent), navigating regulatory demands (25 per cent), and bolstering cybersecurity (24 per cent).
Still, many leaders are converting these challenges into opportunities. About 72 per cent have adjusted their growth strategies to weather market turbulence, underscoring what KPMG describes as a “continent where optimism is returning, strategy is converging, and leadership is being redefined.”
AI Takes Centre Stage
Artificial intelligence has emerged as the top strategic priority for African CEOs heading into 2026.
The report shows that 71 per cent of executives are channeling investments into AI to boost efficiency and long-term resilience, while 26 per cent plan to commit over 20 per cent of their annual budgets to AI, almost double the global average of 14 per cent.
Executives in West Africa (65 per cent) lead in AI adoption, followed by East Africa (40 per cent) and Southern Africa (38 per cent). Many see AI as not just a futuristic tool, but a current driver of productivity and competitive edge.
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Nevertheless, technological progress is being slowed by Africa’s persistent infrastructure gaps. Unreliable electricity, weak broadband connectivity, and outdated hardware continue to limit the continent’s capacity for data-heavy AI applications. Ninety-six per cent of respondents cited inadequate data readiness as a major hurdle, reinforcing the need for better local data infrastructure.
Investment priorities over the next few years include cybersecurity and digital resilience (45 per cent), AI integration across business operations (40 per cent), and innovation in scalable technologies (34 per cent).
“To successfully deploy AI, African organisations must decide whether to build, buy, or partner for these solutions, each option carrying its own trade-offs,” said Joelene Pierce, CEO Designate of KPMG South Africa.
While most CEOs are investing in digital transformation, few appear concerned about the threat of quantum computing to data encryption, with only 14 per cent in West Africa, 22 per cent in Southern Africa, and 35 per cent in East Africa flagging it as a risk. Experts warn that this low awareness exposes the region to emerging cybersecurity vulnerabilities as digital systems become more interconnected.
Sustained Focus on ESG
The survey also reveals that African executives remain committed to environmental, social and governance (ESG) goals, despite complex regulatory landscapes. Seventy-nine per cent expressed confidence in meeting ESG requirements, though only 51 per cent prioritise compliance and reporting, significantly below the global average of 77 per cent.
“CEOs across the world, including in Africa, continue to recognise ESG as vital to their business models and are developing innovative strategies to enhance sustainability in an evolving marketplace,” said Benson Ndung’u, KPMG East Africa CEO.
Meanwhile, East African firms are leading in hiring new talent with AI and technological expertise, with 62 per cent of CEOs prioritising tech-oriented recruitment. Southern African firms are showing similar focus across digital skill areas.
Despite infrastructure constraints, KPMG’s findings paint a picture of a resilient, forward-looking African corporate landscape, one where CEOs are betting on technology, innovation, and sustainability to drive growth in the years ahead.