Overview:
KPMG survey finds African CEOs prioritize generative AI, talent and ESG. Eighty-six percent plan acquisitions, signaling a strong expansion appetite.
NAIROBI, Kenya — A new wave of optimism is defining Africa’s corporate landscape, with chief executive officers expressing strong confidence in their growth prospects despite persistent global economic and geopolitical turbulence.
The KPMG 2025 Africa CEO Outlook Survey, which collected views from 130 CEOs across Southern, East and West Africa, found that 78 percent of leaders feel highly confident about their own organizations’ growth, an increase of more than 12 percent from the previous year. Furthermore, 98 percent of those surveyed expect their businesses to expand over the next three years.
This surge in confidence is translating into aggressive strategic action, most notably in technology and mergers and acquisitions.
“This year’s results reflect a confident and pragmatic leadership mindset across the continent,” said Ignatius Sehoole, CEO of KPMG South Africa and CEO of KPMG One Africa. “African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent and sustainable growth strategies. The outlook is clear: resilience and innovation will define Africa’s growth story.”
The survey identified generative AI, talent, ESG (environmental, social and governance) and cybersecurity as the top four forces shaping strategic priorities. African CEOs are dedicating major resources to innovation and expansion. Seventy-one percent are investing in AI and talent, viewing the technology as an immediate lever for efficiency. The commitment is significant: 26 percent plan to allocate more than 20 percent of their annual budget to AI, nearly double the global average of 14 percent.
The appetite for growth is robust, with 86 percent of African CEOs planning to pursue acquisitions in the next three years, a notable rise from 77 percent last year. Despite the focus on AI, 88 percent of CEOs expect to increase headcount, reinforcing the view that technology is seen as a complement to human capability.
While optimism is high, leaders identified three pressing local challenges: integrating AI into core operations (32 percent), managing regulatory pressures (25 percent) and strengthening cybersecurity (24 percent). Infrastructure gaps, including unreliable power supply and limited connectivity, continue to complicate the adoption of data-intensive AI solutions. Joelene Pierce, CEO designate of KPMG South Africa, noted that organizations must pragmatically “weigh the pros and cons of building, buying or partnering for AI solutions.”
CEOs remain committed to ESG goals, with 79 percent confident they can navigate complex cross-market regulations. Additionally, leaders are increasingly prioritizing intra-African trade and market expansion, aligning their strategies with opportunities under the African Continental Free Trade Area (AfCFTA) agreement. Seventy-four percent of African leaders are using AI to reduce emissions and improve energy efficiency.
Benson Ndung’u, CEO of KPMG East Africa, affirmed that ESG remains crucial, saying CEOs “continue to recognize the importance of ESG within their organizations and are implementing diverse strategies for sustainability.”
The survey, the 11th edition of the KPMG CEO Outlook, was conducted between Aug. 5, 2025, and Sept. 10, 2025, and included 1,350 CEOs globally, all overseeing companies with more than $500 million in annual revenues.