Doing business in Africa: a survey of CEOs

TL;DR

The PwC CEO survey provides insights on the economic prospects and challenges of doing business in Africa, highlighting areas of optimism such as FDI, technology, and the African Continental Free Trade Agreement, as well as concerns about policy uncertainty, overregulation, and skills shortages.

Transcript

great excellent and with remarkable Swiss precision timing it is five seconds to go before the start of the very first press conference of the working with Forum on Africa 2019 our 28th meeting here focusing on Africa we started our first Africa meetings in 1990 of water reform has been in lockstep working with partners and friends and constituents... Read More

Key Insights

• 🌐 African CEOs are relatively more optimistic about the economic prospects for their companies compared to global CEOs.
• 🇨🇫 The African Continental Free Trade Agreement is seen as a promising opportunity for increased intra-African trade and economic growth.
• 😀 African CEOs face challenges of policy uncertainty, overregulation, unemployment, and the impact of technological advancements.
• 🌍 Private sector involvement is crucial in addressing the skills shortage in Africa through investment in upskilling and reskilling initiatives.
• 😋 African countries have vast untapped arable land, presenting an opportunity for the continent to become a hub for food production and potentially feed the world.
• 👨‍💼 Businesses need to collaborate with governments to create an enabling environment for investment and address challenges in the business environment.
• 🍉 There is a need for long-term strategies and investments to navigate the evolving digital landscape and harness the benefits of technological advancements.

Questions & Answers

Q: Why are African CEOs more optimistic compared to their global counterparts?

The survey shows that while global CEOs are increasingly pessimistic about the global economy, African CEOs exhibit more confidence in generating good revenues over the next 12 months. This may be due to their inherent confidence and belief in their own abilities to overcome challenges and achieve growth within their companies.

Q: How is the African Continental Free Trade Agreement viewed by CEOs?

African CEOs perceive the Continental Free Trade Agreement positively, seeing it as an opportunity to unlock the value and potential of intra-African trade. They believe that increasing trade within Africa can contribute to economic growth and development on the continent.

Q: What are the main risks and challenges identified by CEOs in Africa?

CEOs express concerns about policy uncertainty, overregulation, unemployment rates, social stability, and the impact of technological advancements. They believe that these risks, if not properly addressed, could hinder business growth and innovation on the continent.

Q: What can the private sector do to address the skills shortage in Africa?

Private sector organizations need to invest in upskilling and reskilling the workforce by partnering with schools and universities to develop the necessary skills for the future. Collaboration with governments to create an enabling environment and incentives for investment in skills development is also crucial.

Summary & Key Takeaways

• The PwC CEO survey focuses on Africa and provides a summary of the views of 171 Africa-based CEOs. It reveals a record rise in pessimism globally about the future of the global economy, but African CEOs show more optimism.

• Africa-based CEOs are confident about generating good revenues over the next 12 months, despite concerns about the global economy.

• CEOs struggle to find new markets due to trade conflicts and protectionism, with a decline in investment interest in the US, China, and Europe.

• The impact of technological advancements like AI is acknowledged, but many CEOs lack strategies to prepare for a more digital future.

• The lack of key skills is a significant challenge for Africa, with the continent having the largest young population but lacking appropriate skills for growth.