This archive report was first published on 23 September 2019.
On September 23, 2019, PwC released its Africa Business Agenda 2019 report, highlighting the challenges faced by companies operating in Africa.
The report surveyed 171 CEOs in 19 countries, with the majority running businesses with revenues exceeding $100 million.
Only 27% of CEOs in Africa are confident about their companies' prospects of revenue growth over the next 12 months, a 1% increase from the previous year.
Companies are implementing internal measures to improve operational efficiencies and pursue organic growth to raise their revenues and remain competitive in the market.
Despite Africa being touted as the last frontier of global economic growth, business leaders are cautious in their projections, with only 40% of CEOs believing the global economy will improve, compared to 42% globally.
The report cites governance issues, lack of key skills, increasing tax burdens, volatile exchange rates, and growing threats of cyber risks and populism as constant challenges for businesses.
East African countries have improved their ranking on the World Bank's ease of doing business index, with Rwanda at position 29, Kenya at 61, Uganda at 127, and Tanzania at 144.
Launching the report in Nairobi, Peter Ngahu, PwC regional senior partner for East Africa, said, “In Africa, economic and policy uncertainty, skills gaps, and regulatory issues are among the most pressing issues that CEOs are having to grapple with. African business leaders do see opportunities on the continent, but overall they are playing it safe.”
Companies are facing obstacles that governments have committed to address to improve the ease of doing business.
Kenya is ranked the second-best destination for large companies looking for growth prospects in 2019, after the US and ahead of China.
Tanzania and Uganda are also among the top African countries companies are exploring for growth.
The majority of CEOs have adopted a wait-and-see approach to adopting new technologies, such as artificial intelligence, robotics, and internet of things, compared to their global counterparts.
Some 46% of CEOs have no plans to introduce AI initiatives in the next three years, compared to 35% globally.
