NAIROBI, Kenya — African chief executive officers are displaying a confident and pragmatic outlook, with a significant majority planning major acquisitions and investments in artificial intelligence to drive growth despite global economic uncertainty.
According to the KPMG 2025 Africa CEO Outlook Survey, which captures the perspectives of 130 CEOs across Southern, East and West Africa, 78 percent expressed strong confidence in their own organizations’ growth prospects, an increase of more than 12 percent from last year.
A near-unanimous 98 percent expect business expansion in the short term, defined as the next three years. This optimism is translating into aggressive strategic planning: 86 percent of African CEOs are likely to pursue acquisitions in the next three years, up from 77 percent in 2024.
“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.”
AI and Talent Lead Strategic Shifts
The survey identified generative AI, talent, environmental, social and governance (ESG) factors, and cybersecurity as the top four forces shaping strategic priorities.
African CEOs are dedicating substantial resources to technology adoption. Seventy-one percent are investing in AI and talent to drive resilience, with 26 percent planning to allocate more than 20 percent of their annual budget to AI — nearly double the global average of 14 percent.
- Talent Focus: Eighty-one percent of African CEOs believe upskilling staff in AI will directly impact their success. Eighty-eight percent expect to increase headcount, reinforcing the view that AI complements, rather than replaces, human capability.
- Challenges: Integrating AI (32 percent), managing regulatory pressures (25 percent) and strengthening cybersecurity (24 percent) were identified as the most pressing challenges to doing business in Africa.
- Infrastructure Gaps: Despite high investment, 96 percent cite data readiness as a challenge, pointing to the difficulties posed by unreliable power supply and limited broadband connectivity.
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.”
Regional Integration and ESG
While facing global forces like geopolitical tension and inflation, African leaders are increasingly prioritizing intra-African trade opportunities aligned with the African Continental Free Trade Area (AfCFTA) agreement.
- ESG Commitment: Seventy-nine percent of CEOs expressed confidence in navigating regulatory differences across markets to meet ESG However, only 55 percent felt confident in their capacity to meet new reporting standards, significantly lagging behind the 77 percent reported by global CEOs.
- Sustainability Tools: Seventy-four percent of African leaders are using AI to reduce emissions and improve energy efficiency. Forty-six percent are driving sustainability within their core strategy.
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.
