The 28th Annual Global CEO Survey – Sub-Saharan Africa perspective reveals a paradox in the region: while economic volatility is a concern, there is a growing sense of optimism among business leaders. This shift indicates transformation in how CEOs approach long-term strategies, viewing uncertainty as a catalyst for reinvention. Rather than holding on to traditional business models, leaders are embracing change and exploring new ways to drive growth and profitability.
This new way of thinking is spurred on by Business Model Reinvention, a process of fundamentally changing the way a company creates, delivers and captures value. This involves rethinking and redesigning core aspects of the business, such as its value proposition, revenue streams, customer segments and operational processes, to adapt to changing market conditions and emerging opportunities.
Businesses in Sub-Saharan Africa are undergoing a transformation, driven by demographic changes, technological advancement and the rise of entrepreneurial leadership. To reduce reliance on traditional commodity exports, business leaders are embracing strategic diversification, focusing on sectors such as technology, finance and renewable energy, enhancing profitability and global competitiveness. Investment in the region is rising, with significant deals in the energy and mining sectors, driving economic growth and development.
It erodes consumer spending power, leading to reduced demand for products and services. Businesses face higher costs for raw materials, labour and other operational expenses, squeezing profit margins and complicating strategic planning. The uncertainty surrounding inflation makes financial forecasting and investment decisions difficult, diverting focus from innovation and long-term growth.
Macroeconomic volatility is another major concern, with 30% of CEOs feeling highly exposed. Global economic shifts, political instability, and changes in commodity prices create an unpredictable environment. This volatility impacts consumer confidence and supply chain stability, making it challenging for businesses to implement long-term strategic plans.
Q: How exposed do you believe your company will be to the following key threats in the next 12 months? (SUMMAY NET: Highly or extremely exposed)
These megatrends manifest differently across various regions, each facing unique challenges that shape their economic landscapes.
Despite facing numerous threats, Sub-Saharan Africa CEOs demonstrate remarkable optimism about the future.
This confidence exceeds the global average of 55%, with Southern Africa CEOs showing the highest optimism at 67%, followed by Eastern and Western regions at 59% each.
This optimism is rooted in strategic business transformation efforts to explore future opportunities and address challenges. Political transitions and policy reforms across Southern Africa, including South Africa's Government of National Unity, have created a compelling environment for business growth, contributing to positive sentiment about the region's economic trajectory.
Q: When making strategic decisions, how often do you take the following actions? (NET: More than 60%)
Improved profitability is a key factor driving optimism among Sub-Saharan Africa CEOs. During the most recent fiscal year, 24% of companies reported profitability slightly better than the industry average, while 17% reported significantly better profitability. This indicates effective cost management and revenue generation strategies.
Q: During the most recently completed fiscal year, how did your company's profitability compare to your industry average?
Sub-Saharan Africa CEOs are strategically reinventing their businesses through innovation, with 44% developing new products and services, 42% targeting new customer bases and 36% exploring alternative market routes. This multi-faceted approach to reinvention is ambitious but can drive exponential growth if managed effectively.
Q: To what extent has your company taken the following actions in the last five years
Sub-Saharan Africa CEOs are balancing technological advancements with workforce stability, with 45% planning little to no changes to headcount in the next 12 months. This stability is driven by the integration of technologies such as AI, cloud computing and data analytics, with 29% planning to integrate AI significantly into core business strategies over the next three years.
The impact is already evident: 65% of companies report little to no change in headcount after introducing AI, while experiencing notable improvements in efficiency. Both employees and CEOs have seen productivity increases of 56% and 53% respectively.
While 97% of businesses continue to generate revenue from traditional core operations, 78% have shifted strategy to include extensions to primary business models, with half of these leaders introducing fundamentally distinct business models. This indicates calculated risk-taking while maintaining solid operational foundations.
Q: If your company continues running on its current path, for how long do you think your business will be economically viable?
The path to reinvention is deeply rooted in solving distinct challenges unique to Africa, such as tailored short-term insurance policies addressing specific local needs. These strategic moves are supported by sophisticated decision-making, with 83% of CEOs discussing strategic decisions within a comprehensive organizational context and 79% actively encouraging viewpoints that challenge existing leadership perspectives.
To successfully transition from disruption to reinvention, Sub-Saharan Africa CEOs should:
Sub-Saharan Africa exemplifies strategic thinking and adaptive capabilities. CEOs are making bold changes, integrating new technologies, exploring diverse sectors and maintaining operational strengths. This region's transformation highlights the importance of flexibility, strategic foresight and a balanced approach to innovation.
Key insights:
Using PwC’s Business Model Reinvention framework, we collaborate closely with organisational leaders to map out a plan that drives towards value creation and growth.
Our focus is to use our human-led, tech-powered capabilities to address opportunities to help your organisation reinvent your business model and radically transform how you create, deliver and capture value.
PwC guides businesses through reinvention with a comprehensive approach focusing on four key stages:
PwC creates impact across the entire landscape of your Business Model Reinvention. From tax and deals to risk and regulation, PwC has the broad capabilities to help clients deliver every part of their business strategy.
Dion Shango
Territory Senior Partner for PwC’s East, West and South Market regions in Africa, PwC South Africa
Tel: +27 (0) 11 797 4166
Shirley Machaba
Regional Senior Partner, PwC South Market Area, PwC South Africa
Tel: +27 (0) 11 797 5851
Peter Ngahu
Regional Senior Partner, PwC East Market Area, PwC Kenya
Tel: +254 (0) 20 285 5090