Despite global economic uncertainty and rising geopolitical tensions, African business leaders are expressing renewed optimism about the continent’s growth trajectory. According to the KPMG 2025 Africa CEO Outlook Survey, which captured the views of 130 CEOs across East, West, and Southern Africa, nearly eight in ten executives remain confident about their organizations’ prospects over the next three years.
“This year’s results reflect a confident and pragmatic leadership mindset across the continent,” said Ignatius Sehoole, CEO of 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.”
The report, part of KPMG’s global CEO Outlook—now in its 11th year and surveying 1,350 CEOs across 11 markets—shows that 98% of African CEOs expect to expand their businesses in the short term, while 86% plan to pursue mergers and acquisitions, up from 77% last year. Confidence in domestic economies is also climbing, with 63% expressing optimism about their country’s growth, up from 61% in 2024.
Still, the challenges are familiar: integrating AI into core operations (32%), navigating regulatory pressures (25%), and improving cybersecurity (24%). Yet, rather than pulling back, 72% of CEOs say they’ve adjusted their growth strategies to meet these challenges—signaling a more adaptive, forward-looking leadership style across the continent.
Artificial intelligence has emerged as the top strategic priority heading into 2026. Seventy-one percent of CEOs are investing in AI to drive operational efficiency and long-term resilience, and 26% plan to allocate more than a fifth of their annual budgets to AI—nearly double the global average. West Africa leads with 65% of CEOs prioritizing AI, followed by East Africa (40%) and Southern Africa (38%).
But progress is uneven. Infrastructure gaps—unreliable electricity, limited broadband, and outdated computing systems—continue to constrain innovation. Nearly all CEOs (96%) cite data readiness as a major challenge. Even so, they are doubling down on investments in cybersecurity (45%), workflow AI integration (40%), and scalable technology solutions (34%).
“To deploy and scale AI, African organisations are faced with three options: build, buy or partner,” said Joelene Pierce, CEO Designate of KPMG South Africa. “There is no one-size-fits-all approach. The right strategy depends on existing capabilities, risk appetite, and strategic goals.”
While many African leaders are betting on AI to streamline operations, few are preparing for the next wave of risks. Concerns about quantum computing’s impact on encryption remain low—just 14% in West Africa, 22% in Southern Africa, and 35% in East Africa—leaving many firms potentially exposed as digital systems grow more interconnected.
At the same time, talent remains central to this transformation. Eighty-one percent of CEOs believe upskilling in AI will directly influence their organization’s success, while 88% plan to expand their workforces. Across the continent, CEOs are redesigning roles and retraining staff to thrive in AI-enabled environments. West Africa leads in redeployment (70%) and role redesign (65%), while East Africa tops new hiring in tech and AI (62%).
“Today’s CEO is expected to be more than a strategic thinker,” said Tola Adeyemi, CEO of KPMG West Africa. “They must embrace digital and AI literacy, lead cultural transformation, and demonstrate agility under pressure. Modern leadership requires CEOs to be communicators, innovators, and champions of change.”
On environmental, social, and governance (ESG) goals, 79% of African CEOs say they remain committed despite mounting regulatory complexity. Yet only 55% feel confident in their capacity to meet new reporting standards—well behind their global peers (77%). A fifth of respondents cite decarbonising supply chains as their top challenge, pointing to a lack of technical expertise and infrastructure.
Even so, optimism prevails. Seventy-four percent of CEOs are using AI to cut emissions and boost energy efficiency, while 46% have embedded sustainability into core strategy. West Africa again leads the way, with 60% prioritizing compliance and reporting standards, compared with 48% in East Africa and 35% in Southern Africa.
“CEOs worldwide, including those in Africa, continue to recognise the importance of ESG within their organisations,” said Benson Ndung’u, CEO of KPMG East Africa. “They are implementing diverse strategies for sustainability in response to evolving market demands.”