PwC 28th Annual CEO Survey – Sub-Saharan Africa perspective

Introduction

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.

Improved profitability: 24% of companies reported slightly better profitability than the industry average and 17% reported significantly better profitability.
Innovation and scalability: 44% of businesses are developing new products, 42% targeting new customers and 36% exploring alternative market routes.
AI Integration: 47% of CEOs plan substantial AI integration, with 65% reporting no headcount change and significant efficiency improvements.
Strategic decision-making: 79% of leaders encourage divergent viewpoints, reflecting a shift towards distributed decision-making.

From threats to disruption

42%

of CEOs in Sub-Saharan Africa, inflation is a persistent challenge.

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.

West Africa: High inflation and currency volatility, especially in Nigeria, impact cross-border trade and investment.
Southern Africa: Low availability of skilled labour hampers growth.
East Africa: Cyber risks and geopolitical conflicts threaten stability.

From disruption to reinvention

Despite facing numerous threats, Sub-Saharan Africa CEOs demonstrate remarkable optimism about the future.

61%

of CEOs in the region believe their businesses will remain viable for more than 10 years—a significant 21% increase from the previous year.

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%)}

Profitability as a cornerstone to Business Model Reinvention

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?}

Southern Africa: 18% report profitability significantly above industry average, with strong focus on strategic pricing models and enhanced operational efficiencies.
West Africa: 18% report profitability significantly above industry average, driven by rapidly growing economies, large populations and strategic investments despite higher competition and market fragmentation.
East Africa: A lower percentage (12%) of businesses are performing significantly above industry average, partly due to economic volatility, challenges in infrastructure development and heavy reliance on agriculture susceptible to climate change and market fluctuations.

Innovation and scalability

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}

East Africa: Is highly focused on innovation (47% planning new products/services) and market expansion (47% aiming to reach new customers), with Kenya leading in creativity and technological advancement, particularly in the fintech sector.
Southern Africa: 41% of CEOs are planning to develop innovative products, with 33% focusing on implementing new pricing models, highlighting emphasis on financial sustainability and competitive positioning. For example, the automotive industry in South Africa is known for its innovative manufacturing processes and export-oriented production, contributing significantly to the economy.
West Africa: CEOs have a balanced approach with 49% targeting new customer bases and 43% planning collaborations with other organisations. Nigeria is leveraging digital marketing and social media to reach new customers, particularly in telecommunications, continuously expanding its customer base by offering innovative data and voice services.

Resources and processes

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.

East Africa: 65% of CEOs report increased efficiencies in their own time at work, with 57% observing similar gains in employees' time. A further 70% report little to no change in headcount and 16% increasing headcount. This trend reflects a strategic focus on leveraging technology to improve operational efficiency while maintaining workforce stability.
Southern Africa: 45% of CEOs report increased efficiencies in their own time and 48% see improvements in employees' time. 83% report little to no change in headcount, while only 7% have indicated an increased headcount. For example, AI is being used in the mining sector to improve safety and operational efficiency, allowing companies to maintain their workforce while enhancing productivity.
West Africa: Has the highest reported increases in efficiency (67% for both CEOs and employees). 67% report little to no change in headcount. While 16% have indicated increased headcount. This is evident in Nigeria, where AI is being used in the financial sector to improve customer service and fraud detection.

Operating model

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.

Next steps for CEOs

To successfully transition from disruption to reinvention, Sub-Saharan Africa CEOs should:

Create unique advantage by optimising operations and enhancing financial performance through effective cost management and revenue generation strategies tailored to regional strengths.
Invest in innovation and scalability through:
- Diversify business models by exploring high-potential sectors and balancing domestic market strength with international expansion.
- Focusing on new products/services, new customer bases and advanced technologies.
Shift to dynamic resource allocation models to swiftly direct financial and human resources to high-priority projects.
Effective workforce management by balancing workforce stability with technological advancement to enhance productivity while addressing the skills gaps.
Implement data-driven strategic decision-making that balances analytical thinking with strategic imagination.
Foster organisational agility and adaptability to navigate complex market conditions
Promote collaboration with other organisations and leveraging government initiatives to further support growth and innovation.

From reinvention to success

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:

Flexibility and strategic foresight: Future business success in Sub-Saharan Africa will depend on adaptability and strategic planning.
Balanced innovation: Companies must balance innovation with maintaining core operations.
Sustainable growth: Thoughtful transformation can unlock new pathways to growth and resilience.

How PwC can help:

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:

We help you shape your future-focused strategy by targeting outcomes, value propositions and ways-to-play that address evolving profit pool shifts and market needs.

We collaborate with you to design structures for effective resource and capability allocation to deliver strategic objectives.

Drawing from our deep bench of capabilities means we can build, deliver and test new initiatives, helping you scale your solution faster and accelerate sustainable growth.

By leveraging agile, flexible resource models, we help you access talent and technology to optimise your managed business model’s operations for sustained efficiency and growth.

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.