KPMG Africa CEOs Prioritise Growth as AI Readiness Lags

African business leaders are prioritising growth, artificial intelligence (AI) and workforce development, but significant gaps in technology readiness and skills could slow their ability to translate investment into measurable results, according to KPMG Africa’s 2026 CEO Outlook.

Published in October 2026 under the title From Ambition to Execution: Building Resilience and Sustainable Growth, the report is the third edition of KPMG  Africa’s CEO Outlook and forms part of the 12th KPMG Global CEO Outlook. It draws on a survey of 1,400 chief executive officers worldwide, including 176 from Africa, conducted between 11 August and 21 September 2026.

The report found that 79% of African CEOs are confident in their organisations’ growth prospects, while 72% expressed confidence in their domestic economies and 66% in the global economy. Among global counterparts, the corresponding figures were 84%, 75% and 65%.

Recent business performance has also been positive, with 86% of African CEOs reporting revenue growth in their latest financial year. However, expectations for future earnings are more cautious. Only 58% anticipate annual earnings growth of at least 2.5% over the next three years, compared with 68% of CEOs globally.

Cybersecurity and data security, alongside supply-chain resilience, were identified as the leading threats to growth, each cited by 31% of African respondents. AI integration followed at 27%. Organic growth was the leading operational priority for 18% of African CEOs, more than double the 8% recorded globally.

Confidence levels vary across the continent. In Southern Africa, 90% of surveyed CEOs expressed confidence in their domestic economies, while East Africa recorded the highest confidence in individual business prospects, at 84%. West African confidence in company growth prospects declined from 85% in 2025 to 70% in 2026, although appetite for mergers and acquisitions rose from 5% to 37%.

North African CEOs also expressed confidence in their organisations, at 75%, but were more cautious about earnings, with only 38% expecting annual growth of at least 2.5%. KPMG noted that differences in regional sample sizes mean these findings should be interpreted as directional indicators.

Technology investment is another major priority. Although 72% of African CEOs identified AI as a leading investment priority, close to the global figure of 79%, only 14% believed their organisations were keeping pace with AI developments. The global equivalent stood at 66%.

African CEOs also anticipate a longer period before AI investments deliver returns. Some 48% expect payback within one to three years, compared with 71% globally, while 42% anticipate returns taking more than three years, against 12% of global respondents.

The report attributes the slower expected returns partly to the work required to modernise existing systems and establish effective governance. It recommends that organisations link AI initiatives to clearly defined business outcomes, supported by measurable baselines and accountable leadership.

Regional approaches to AI differ. West African businesses report significant potential from agentic AI but face data-readiness challenges, cited by 73% of respondents in the region. East African CEOs are taking a measured approach to investment, while Southern African organisations are redesigning operating models around AI. North African leaders are adopting AI selectively, with particular concerns about fraud and data privacy. None of the surveyed North African CEOs said their organisations were keeping pace with AI developments.

Workforce transformation is also emerging as a central part of business strategy. About 84% of African CEOs expect their organisations’ headcount to increase over the next three years, compared with 89% globally. At the same time, 86% plan to retain and retrain high-potential employees, 82% are redesigning roles to support human-AI collaboration, and 74% intend to recruit AI and technology specialists.

Nevertheless, 56% expect selective workforce reductions, compared with 52% globally, indicating that businesses are likely to combine recruitment and reskilling with targeted changes to staffing levels.

Skills shortages remain a significant obstacle, cited by 59% of African CEOs and 73% of respondents in West Africa. Only 37% of African organisations provide tailored AI training, compared with approximately 46% globally. African CEOs also place greater emphasis on risk management as a leadership capability, with 51% highlighting its importance against 39% of global peers.

On sustainability, the report suggests African businesses are becoming more selective rather than abandoning their commitments. Nearly half of African CEOs, or 48%, are embedding sustainability more deeply into their core strategies, compared with 63% globally. Another 40% are concentrating on issues they consider most material to their businesses.

However, only 22% fully incorporate sustainability costs and returns into every major capital investment decision, compared with 29% globally. The cost of decarbonisation remains a major barrier, identified by 35% of African respondents, more than twice the global figure of 16%.

Readiness for sustainability reporting has improved, with confidence rising from 55% to 65% over the past year. AI is also viewed as a potential tool for identifying resource-efficiency opportunities, with 80% of African CEOs expecting it to help in this area. Yet 85% expressed concern about the environmental footprint of AI itself.

The report’s central conclusion is that Africa’s next phase of business growth will depend on execution rather than expansion alone. KPMG argues that leaders must protect core operations, direct capital towards measurable productivity improvements and strengthen earnings resilience to achieve sustainable results.

The report is led by Tola Adeyemi, Senior Partner and CEO of KPMG One Africa. Its findings reflect CEO survey responses rather than economic forecasts, and some percentages may not total 100% because of rounding.