KPMG Africa CEO Outlook shows wave of optimism among regional chiefs

Many African CEOs are optimistic about their own organisations’ growth prospects despite global economic uncertainty and geopolitical tensions. That is according to a new report from KPMG that surveyed 130 CEOs across Africa.

The results of the survey paint a positive picture, with many CEOs across Africa feeling encouraged and defiant in the face of challenges, in part thanks to strong growth and investment. A total of 78% expressed strong business confidence and an incredibly near-majority of 98% said they expect business expansion within the next three years.

Many CEOs point to AI, talent, ESG, and cybersecurity as among their top four strategic priorities. Looking forward, 71% of Africans CEOs said they plan to invest more in AI and talent to drive growth and resilience, while 86% said they would look to make acquisitions within the next three years.

Indeed, expansion seems to be top of agenda for many of the CEOs surveyed, with 88% saying they expact to soon increase headcount.

“This year’s results reflect a confident and pragmatic leadership mindset across the continent,” said Ignatius Sehoole, CEO of both KPMG South Africa and KPMG One Africa.

“African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies. The outlook is clear: Resilience and innovation will define Africa’s growth story.”

Economic outlook

Africa CEOs are facing the same pressing challenges as business leaders around the world: Technological disruption, inflation, and geopolitical tensions, among others. More locally, the respondents pointed to three issues common to many businesses in Africa today: Integrating AI into core operations (32%), managing regulatory pressures (25%), and strengthening cybersecurity (24%).

Despite those challenges, African business leaders have been turning these headwinds into catalysts for transformation, with 72% having adjusted their growth strategies to deal with market challenges. The general trend is optimistic, as strategy is converging and leadership is being redefined.

Innovations and AI

African CEOs have been prioritizing AI as one of their main strategic focuses for 2026, with 71% investing in AI to boost efficiency and resilience. There is a high degree of commitment to this, as 26% of leaders plan to dedicate over 20% of their annual budget to AI – nearly double the global investment rate of 14%.

Despite ongoing economic uncertainty, this aggressive investment – which is strong across West, East, and Southern Africa – signals that executives see AI as not merely a tool for quick growth, but a long-term strategic necessity and a business imperative.

Progress has been slowed somewhat by widespread infrastructure deficiencies and a lack of data readiness (96% cite this), but instead of hesitating, many African firms are making pragmatic, immediate investments in cybersecurity, AI workflow integration, and scalable technology solutions.

“To deploy and scale AI, African organisations are faced with three options: Build, buy or partner,” said Joelene Pierce, CEO designate with KPMG in South Africa.

“There is no one-size-fits-all-approach. The right strategy depends on the organisations existing capabilities, risk appetite and strategic objectives. A sustainable approach should be shaped by the business context, the desired outcomes, and the ability to scale and govern AI effectively.”

Talent in the age of AI

Talent remains central to AI adoption and organisational transformation with 81% of African CEOs believing that upskilling in AI will directly impact their success. A majority of firms also said they would be deploying staff into AI-enabled roles.

Many African CEOs indicated that they envision AI complementing rather than replacing human capability. In fact, broader digital and technological literacy is now seen as one of the most desirable leadership capabilities, with AI skills considered particularly valuable.

ESG and sustainability

Another major priority for African CEOs have been ESG goals, with 79% showing confidence in the ability to navigate ESG regulations across markets, despite the significant complexity.

More than half (51%) of African CEOs said they are prioritising compliance and reporting standards, which is less the same figure for global CEOs (77%). Still, CEOs in Africa were resilient, with many using AI to help reduce emissions.

“CEOs worldwide, including those in Africa continue to recognise the importance of ESG within their organisations and are implementing diverse strategies for sustainability in response to evolving market demands,” said Benson Ndung’u, CEO of KPMG East Africa.