By Business Insider Reporter
African CEOs are regaining confidence in the continent’s economic prospects, betting on artificial intelligence (AI), talent development, and sustainability as catalysts for growth in 2025 and beyond, according to the latest KPMG Africa CEO Outlook.
The survey – which gathered insights from 130 chief executives across East, West, and Southern Africa – reveals a sharp rebound in business optimism despite global uncertainty.
About 78 percent of CEOs said they were confident about their companies’ growth prospects, up 12 percentage points from last year, while 98 percent expect expansion in the short term. Nearly nine in ten plan to pursue mergers and acquisitions within the next three years, signalling a strong appetite for growth despite inflationary and geopolitical pressures.
AI takes centre stage in African boardrooms
Generative AI is now the top strategic priority across African corporates. According to KPMG, 71 percent of CEOs are investing in AI to enhance efficiency, productivity, and strategic decision-making – with 26 percent planning to allocate more than a fifth of their annual budgets to AI initiatives, nearly double the global average.
KPMG East Africa CEO Benson Ndung’u said the shift marks a defining moment for African business leadership.
“Technology and AI – particularly agentic AI – are becoming central to how CEOs are shaping strategy. They’re not waiting for the future; they’re operationalising AI today.”
Still, challenges persist. Ninety-six percent of CEOs cited data readiness as a key obstacle, pointing to unreliable infrastructure, outdated computing systems, and limited broadband connectivity. Even so, 45 percent are boosting investment in cybersecurity, while 40 percent are integrating AI tools directly into workflows.
People power behind digital transformation
The report underscores that Africa’s advantage lies not only in adopting new technologies but in building the skills to sustain them.
- 81 percent of CEOs believe AI upskilling will directly influence their business success.
- 67 percent are redeploying employees into AI-enabled roles.
- 88 percent expect to increase overall headcount over the next three years.
“Africa’s youthful workforce offers a long-term edge,” said Gerald Kasimu, a KPMG Africa partner. “The next step is responsible adoption – ensuring AI is implemented with security and ethics by design.”
Regionally, West Africa is leading in redesigning job roles for AI collaboration, while East Africa tops in hiring new tech and AI talent, reflecting growing investment in digital infrastructure and innovation hubs in countries such as Kenya, Tanzania, and Rwanda.
ESG and sustainability stay on the agenda
Despite regulatory uncertainty and rising costs, African CEOs remain strongly committed to environmental, social, and governance (ESG) goals.
The survey shows:
- 79 percent are confident about navigating ESG compliance frameworks, though only 55 percent feel ready to meet new global reporting standards.
- 74 percent are leveraging AI to reduce emissions and boost energy efficiency.
- 46 percent have embedded sustainability into their core corporate strategies.
However, supply-chain decarbonisation remains a major challenge, with 21% identifying it as the biggest barrier to achieving net-zero goals.
Resilient optimism in a volatile world
KPMG Africa CEO, Ignatius Sehoole, said the findings reflect a region navigating uncertainty with renewed focus and ambition.
“We are leading through volatility – but also through opportunity. African CEOs are not just responding to global headwinds; they’re reimagining growth through innovation, resilience, and purpose-driven leadership.” As African economies continue to diversify, KPMG notes that CEOs are positioning their companies for inclusive, technology-driven, and sustainable growth – betting that smart investment in AI, human capital, and ESG will define Africa’s next decade of business leadership.
