African CEOs Lift Investment Bets on AI Despite Economic Headwinds – KPMG Survey
African chief executives are growing more confident about their companies’ prospects and are stepping up investment in artificial intelligence even as they confront weak growth, volatile geopolitics and regulatory pressure, a new KPMG survey shows.
The 2025 Africa CEO Outlook Survey, which captured views from 130 executives across East, West and Southern Africa, found that 78 percent expressed strong confidence in their firms’ growth prospects, up more than 12 percentage points from last year.
Nearly all respondents expect to expand their businesses over the next three years, and M&A appetite is strengthening, with 86 percey likely to pursue acquisitions.
Sentiment toward domestic economies is also improving, with 63 percy projecting stronger national growth. Still, CEOs say they are grappling with persistent obstacles including integrating AI into operations, tightening regulation and rising cyber risks.
Despite these pressures, executives are adjusting their strategies. More than seven in ten CEOs have overhauled growth plans to reflect market shifts, signalling a return of optimism and a convergence in strategy across the continent.
AI has become a central focus. About 71% of African CEOs are investing in AI to boost efficiency and strengthen long-term resilience, and more than a quarter plan to allocate over 20 percent of their annual budget to the technology—almost double the global average.
West African CEOs were the most bullish on AI adoption, followed by East and Southern Africa.
Yet investment momentum is running ahead of infrastructure readiness.
Power shortages, patchy connectivity and outdated systems are complicating AI deployment, and nearly all respondents cited weak data maturity as a constraint. Even so, companies are prioritising spending on cybersecurity, digital resilience and scalable technology as they push ahead.
Concerns over emerging risks remain uneven. Only a small share of CEOs expressed worry about the threat quantum computing poses to traditional encryption, suggesting potential vulnerabilities as digital systems expand.
The survey shows talent strategies shifting in response to rapid technological change. A large majority of CEOs expect AI skills to determine future competitiveness, with most redeploying staff into AI-enabled roles and planning to increase headcount rather than shrink it.
Africa’s youthful workforce is seen as an advantage, reducing the scale of generational skill gaps reported in other regions.
On sustainability, executives remain committed to meeting environmental, social and governance standards despite complex rules and limited technical capacity.
Around half of CEOs are confident in meeting new reporting obligations, well below global peers, while many see decarbonising supply chains as their biggest hurdle. Even so, nearly three-quarters are using AI to cut emissions and improve energy efficiency.
The findings point to a business landscape defined by cautious optimism, with leaders betting on technology, skills and more resilient operating models to navigate uncertainty and unlock future growth.
news@businessdayafrica.org