Africa remains one of the preferred frontiers for investment opportunities and doing business, according to a report released by PwC Africa today. Growth and foreign direct investment has continued in Africa amid the recent global economic uncertainty.
This was confirmed by PwC’s Africa Business Agenda survey, which shows that Africa and the emerging markets remain a vital growth opportunity for CEOs. The Africa Business Agenda compiled results from 153 CEOs and included insights from business and public sector leaders from across Africa.
Hein Boegman, CEO for PwC Africa, says: “CEOs in Africa are ramping up their efforts to innovate and find new ways to do business on the continent in a move to stimulate growth in a challenging and uncertain global business environment.
“The global financial and economic crisis has revealed Africa’s vulnerability to a number of external economic shocks. These include the decline in commodity prices fueled by the economic slowdown in China; a marked decline in the demand for commodities; and the collapse in value of the emerging market currencies against the US-dollar in anticipation of an interest rate hike.
“Notwithstanding a multitude of challenges, many of which are cyclical, we remain confident that Africa’s prospects remain positive. Africa’s business leaders have the opportunity to pursue new business opportunities on the continent, more particularly in the light of rapid innovative and technological advances that have the potential to transform and shape industries.”
The report further showed that Africa’s CEOs are critically aware of these issues and the impact they make on their businesses. CEOs believe global economic growth is unlikely to improve and will stay the same in the short and mid-term; nonetheless they remain confident that there are opportunities for growth over the next 12 months (78%), and 9 out of 10 believe they can deliver growth in the next three years.
The global business environment has become increasingly complex and challenging. The report shows that CEOs in Africa share many of the same concerns with their peers globally. The top three concerns include exchange rate volatility (92%), government response to fiscal deficit and debt burden (90%) and social instability (80%).
CEOs in South Africa have similar concerns as their counterparts on the continent, with the report showing that there are uncertainties about government response to fiscal deficit and debt burden, social instability, and high unemployment or underemployment.
Across the continent, shifting demographics, rapid urbanisation, rising disposable income and technological change are all influencing growth opportunities and strategies. Africa’s CEOs rank technological advances (75%), demographic shifts (52%) and a shift in global economic power (58%) as the top three defining trends that will transform their businesses over the next five years. In addition, new advancements and breakthroughs in frontiers of R&D are opening up more opportunities for businesses.
The survey of CEOs revealed four common priorities among Africa’s business leaders: diversification and innovation; addressing greater stakeholder expectations; effectively leveraging growth catalysts like technology, innovation and talent; and measuring and communicating shared prosperity.
Source : APO
