KPMG: Economic Uncertainty, AI Readiness Will Shape Next Phase of African Investment

Emma Okonji

African business leaders remain confident about growth, but converting that confidence into sustained performance will depend on how effectively organisations navigate economic uncertainty, geopolitical disruption, technological change and structural constraints, according to the 2026 KPMG Africa CEO Outlook.

The Outlook examined the priorities shaping business leadership across the continent, from investment and growth expectations to emerging risks, Artificial Intelligence (AI), talent and sustainability.

According to the report, while 66 per cent of African CEOs are confident in the global economy, broadly in line with the global benchmark of 65 per cent, confidence in their domestic economies stood at 72 per cent. A further 79 per cent are confident in the growth prospects of their own organisations.

The confidence is supported by recent performance, with 86 per cent of African CEOs reporting revenue growth in their latest financial year. However, only 58 per cent expect annual earnings growth of at least 2.5 per cent over the next three years, compared with 68 per cent globally, suggesting that translating revenue gains into sustained profitability remains a priority.

According to the findings, cybersecurity and data security, alongside supply-chain resilience, are the leading threats to growth among African CEOs, each cited by 31 per cent of respondents.

According to the KPMG Outlook, about 45 per cent of African CEOs are increasing investment in cybersecurity and digital-risk resilience, 36 per cent in regulatory compliance and reporting, and 31 per cent in AI integration.

The findings suggested that resilience was no longer simply about protecting organisations against disruption. It is increasingly a condition for growth, enabling businesses to adapt to changing market conditions, protect critical operations and make investment decisions with greater confidence.

For businesses operating across diverse African markets, this requires balancing immediate operational pressures with longer-term investment in infrastructure, technology, governance and capabilities, the outlook said.

Giving details about the outlook, Senior Partner & CEO at KPMG One Africa, Tola Adeyemi, said: “African businesses are demonstrating confidence in their ability to grow, but the next phase of growth will require more than ambition. Leaders must make deliberate choices about where to invest, how to strengthen resilience and how to build organisations that can adapt to disruption. The opportunity is to translate the continent’s resources, markets and entrepreneurial capacity into more productive, competitive and sustainable businesses.”

On sustainability shifts towards measurable business value, the report explained that African CEOs were increasingly approaching sustainability through the lens of commercial performance, operational resilience and reporting readiness.

According to the outlook, almost half, or 48 per cent, report embedding sustainability more deeply into core business strategy, compared with 63 per cent globally, adding that 40 per cent are narrowing their focus to sustainability issues most critical to business performance, against 21 per cent globally.

Taken together, the findings presented a picture of African business leaders who remain optimistic but face increasingly complex decisions about where and how to invest.

“Economic and geopolitical uncertainty is reinforcing the importance of resilience, while AI adoption, skills development and sustainability are placing new demands on organisational capabilities. For Africa, the challenge extends beyond individual business performance. Converting the continent’s resources, demographic potential and expanding markets into sustained growth will require investment in infrastructure, local value chains, skills and competitive business environments,” the report further said.