Artificial intelligence remains a major investment priority for African business leaders, but only 14 per cent believe their organisations are keeping pace with AI developments, highlighting a gap between investment ambitions and readiness, according to the KPMG Africa CEO Outlook 2026.
The report found that 72 per cent of African CEOs identified AI as a top investment priority, compared with 79 per cent globally. However, only 14 per cent believed their organisations were moving at the right pace or ahead of AI developments, against 66 per cent of global CEOs.
The findings also showed that 48 per cent of African CEOs expected AI investments to deliver returns within one to three years, compared with 71 per cent globally. Meanwhile, 42 per cent expected returns to take more than three years, against 12 per cent globally.
KPMG said the longer investment horizon reflects the work required to strengthen data capabilities, integrate AI into existing systems, establish appropriate governance and develop the skills needed to realise business value.
The report noted that the opportunity for African businesses lies not only in adopting AI but also in using it to improve productivity, strengthen competitiveness and develop products and services suited to local and regional markets.
Workforce transformation is also becoming a priority as companies prepare for wider AI adoption. KPMG found that 84 per cent of African CEOs expected their organisations’ headcount to increase over the next three years, compared with 89 per cent globally.
The report said 86 per cent intended to retain and retrain high-potential employees, while 82 per cent were redesigning roles, career paths and team structures to support human-AI collaboration. Another 74 per cent planned to recruit AI and technology talent.
However, skills shortages remain a constraint, with 59 per cent of African CEOs identifying workforce skills gaps, 58 per cent citing AI training and upskilling challenges, and 52 per cent pointing to difficulties attracting and retaining talent.
On sustainability, KPMG found that 48 per cent of African CEOs were embedding sustainability more deeply into their core business strategies, compared with 63 per cent globally. A further 40 per cent were narrowing their focus to sustainability issues considered most critical to business performance, against 21 per cent globally.
Energy management featured prominently in business priorities. The report said 41 per cent of African CEOs prioritised energy demand optimisation, compared with 37 per cent globally. Meanwhile, 40 per cent planned to diversify towards renewable or lower-carbon external energy supplies, against 49 per cent globally, while 15 per cent planned to add dedicated generation or storage capacity, compared with 13 per cent globally.
KPMG also reported progress in sustainability reporting preparedness. The proportion of African CEOs who said their organisations had the capabilities to meet new sustainability reporting requirements rose from 55 per cent in the previous year to 65 per cent in 2026.
The report said African business leaders remained optimistic but faced increasingly complex investment decisions amid economic and geopolitical uncertainty. It identified resilience, AI adoption, workforce development and sustainability as key areas requiring stronger organisational capabilities.
Adeyemi said Africa’s growth prospects would depend on businesses’ ability to operate across markets, develop talent and build the capabilities needed to compete in a changing global economy.
“The priority is to move from recognising the opportunity to executing against it, with investment decisions that strengthen resilience today while building capacity for long-term growth,” she said.
The KPMG Africa CEO Outlook 2026 concluded that confidence alone would not guarantee future performance, with sustained growth depending on businesses’ ability to turn investment into measurable outcomes and strengthen their competitiveness in an increasingly technology-driven global economy.
