African CEOs remain confident in growth, but economic uncertainty, AI readiness will shape next phase of investment – KPMG

The 2026 KPMG Africa CEO Outlook reveals that African business leaders remain optimistic about growth, yet navigating economic uncertainty, geopolitical shifts, technological advancements, and structural barriers will be crucial for sustained performance. While 66% of African CEOs feel confident in the global economy, 72% express that same level of confidence domestically.

Moreover, 79% trust their own organizations' growth prospects, supported by 86% reporting revenue growth in the latest fiscal year. However, only 58% anticipate at least a 2.5% year-over-year earnings increase within the next three years, a sentiment less optimistic than the global average of 68%.

The outlook emphasizes the need for resilience in African businesses operating within an interconnected global landscape, where geopolitical tensions, energy market volatility, supply chain disruptions, and evolving trade dynamics can impact investment decisions and operational costs. Despite these challenges, the continent offers substantial opportunities, including vast energy resources, critical minerals, expanding consumer markets, and the potential for local manufacturing and value chains development.

However, realizing these opportunities depends on factors such as infrastructure, reliable energy, skills, connectivity, and predictable regulatory environments.

Resilience emerges as a central theme in growth strategies among African CEOs. Cybersecurity and data security rank as the top growth threats, cited by 31% of respondents, followed by AI integration at 27%. Investment priorities align with resilience-building efforts, with 45% of CEOs earmarking more funds for cybersecurity and digital-risk resilience, 36% for regulatory compliance and reporting, and 31% for AI integration.

Tola Adeyemi, Senior Partner & CEO of KPMG One Africa, underscores that African businesses show confidence in growth but must translate ambition into deliberate investments in resilience and organizational adaptability. Despite AI being a strategic priority for 72% of African CEOs, only 14% believe their organizations are ahead of AI developments.

This gap highlights the challenge of developing capabilities to effectively deploy AI. Expectations around AI returns differ, with 48% of African CEOs anticipating returns within one to three years, compared to 71% globally. The longer investment horizon may be attributed to the need to enhance data capabilities, integrate AI into existing systems, establish governance, and develop requisite skills.

African businesses are advised to focus not only on technology adoption but on leveraging it to enhance productivity, strengthen competitiveness, and develop localized products and services. Workforce transformation emerges as a critical growth imperative, with 84% of African CEOs expecting headcount growth over the next three years, compared to 89% globally.

However, skills remain a significant constraint, with 59% identifying workforce skill gaps, 58% citing AI upskilling needs, and 52% facing challenges in attracting and retaining talent. Addressing these workforce challenges is essential to fully harness the potential of digital transformation and ensure broader economic participation within African economies.