Key Points
- 66% of African family businesses reported sales growth, surpassing the global average of 57%.
- 53% of respondents are targeting steady growth, while 27% plan faster expansion over the next two years.
- 87% of businesses say they have a clear organisational purpose, but fewer than half communicate it publicly.
- 82% prioritise reinvesting profits to drive long-term resilience and sustainable growth.
- The survey draws on responses from 79 family businesses across Africa and forms part of PwC’s global study covering 1,325 family businesses in more than 60 territories.
- PwC says stronger governance, strategic capital allocation and proactive tax planning will shape the next phase of growth for family-owned enterprises.
Main Story
Family-owned businesses across Africa are outperforming their global counterparts despite mounting geopolitical tensions, technological disruption, climate pressures and economic uncertainty, according to the latest PwC Africa Family Business Survey.
The report, which surveyed 79 family businesses across Africa and forms part of PwC’s global study of 1,325 family businesses in more than 60 territories, found that African family enterprises continue to demonstrate remarkable resilience through disciplined investment strategies, long-term planning and purpose-driven leadership.
According to the survey, 66 per cent of African family businesses recorded sales growth, significantly outperforming the global average of 57 per cent.
The report also found that African family businesses remain optimistic about the future, with 53 per cent targeting steady growth over the next two years, while 27 per cent intend to pursue more aggressive expansion.
PwC noted that family businesses globally are navigating a complex operating environment characterised by geopolitical shifts, rapid technological change, climate-related risks and economic uncertainty.
However, African businesses are responding by leveraging their unique strengths to build competitive advantage.
According to the report, many family-owned businesses are using a clearly defined organisational purpose to drive business growth, adopting more centralised decision-making structures that enable faster responses to changing market conditions, protecting their reputation as a strategic business asset, and deploying long-term capital with greater discipline.
The survey further revealed that while 87 per cent of African family businesses have a clearly defined organisational purpose, fewer than half actively communicate that purpose to external stakeholders, creating what PwC describes as a “purpose-action gap” that could limit business growth and stakeholder engagement.
The report also highlights a strong commitment to reinvestment, with 82 per cent of respondents prioritising the reinvestment of profits rather than short-term distributions, a strategy PwC says supports long-term resilience, sustainable growth and controlled expansion.
The Issues
Although African family businesses continue to outperform global peers, they face increasing pressure from a rapidly changing business environment.
Persistent geopolitical instability, inflationary pressures, evolving technologies, climate-related challenges and shifting regulatory frameworks continue to reshape the operating landscape.
The survey also identifies governance and succession planning as areas requiring greater attention, particularly as businesses expand across generations.
In addition, the report highlights the need for stronger communication of corporate purpose, noting that while most family businesses possess a clear sense of mission, many fail to translate it into a competitive advantage through effective stakeholder engagement.
What’s Being Said
According to PwC, African family businesses are successfully transforming their distinctive characteristics into competitive advantages by embracing long-term thinking, disciplined investment and agile decision-making.
The report states that the next phase of value creation will depend on establishing clearer decision-making responsibilities across family ownership, boards and executive management.
PwC also emphasised the importance of more deliberate capital allocation and stronger tax planning, urging businesses to view evolving government tax reforms as strategic opportunities rather than simply compliance costs.
What’s Next
PwC expects African family businesses to continue strengthening governance structures, improve strategic decision-making and increase long-term investments as they position themselves for sustained growth.
The report also suggests that businesses which strengthen communication around their organisational purpose, improve capital allocation strategies and adopt proactive tax planning are likely to be better positioned to navigate future economic uncertainties and remain competitive.
Bottom Line
Despite a challenging global business environment, African family-owned businesses are demonstrating stronger resilience and growth than many of their global counterparts. PwC says sustained investment, disciplined governance, clearer strategic direction and long-term thinking will be critical to ensuring these enterprises remain key drivers of economic growth across the continent.
