From resilience to reinvention

In a world full of uncertainties, Africa's business leaders stand out with their unique resilience. Their experience in handling complex challenges have assisted them in gaining a competitive edge in today's global market. Our 28th Annual Global CEO Survey, which includes insights from leaders in Sub-Saharan Africa, shows that this resilience has blossomed into something even more powerful: optimism.

What truly stands out in this year's survey is not just the confidence Sub-Saharan Africa CEOs have in economic growth and business success, but their approach to change. They understand that resilience isn't just about surviving tough times—it's about being stronger and adaptable.

CEOs in Sub-Saharan Africa are increasingly optimistic about global economic growth, driven by regional factors such as improved economic policies, lower interest rates, increased investments, reduced inflation and better net exports. These diverse yet interconnected developments across the continent are fuelling a collective optimism about Sub-Saharan Africa's economic future. Some key insights into Sub-Saharan Africa CEOs’ optimism include:

Business leaders in Sub-Saharan Africa need to navigate a complex array of challenges and opportunities, however, they remain increasingly optimistic about the future, driven by a combination of regional economic improvements and strategic initiatives, including navigating:

Key threats

Global forces are reshaping the business landscape, making business model reinvention essential. 

• Inflation is a major concern, with 42% of Sub-Saharan Africa CEOs feeling vulnerable, compared to 27% globally. 
• Other critical risks: Cyber threats, workforce skill gaps, and geopolitical conflicts are more pronounced in Sub-Saharan Africa. 
• Social inequality is a significant challenge, with 17% of CEOs expressing high exposure, compared to 7% globally. 

Reinvention activities

Reinvention is crucial for adapting to emerging realities and achieving future success. Sub-Saharan CEOs have been more aggressive with their reinvention activities.

• Strategic diversification: 50% of companies have entered new sectors in the past five years, compared to 38% globally.
• Product innovation: 44% of companies have developed innovative products or services, compared to 38% globally. 
• Market expansion: 42% have targeted new customer bases, compared to 32% globally.
• Distribution innovation: 36% have explored new routes to market, compared to 25% globally. 

Decision-making architecture

CEOs have been very mindful with their decision-making architecture through more structured approaches. CEOs are building robust decision-making frameworks, with higher transparency (83% vs. 76% globally), encouragement of contradictory viewpoints (79% vs. 62% globally), and consideration of missed opportunities (77% vs. 61% globally).  

Integrating AI

CEOs cannot consider business model reinvention without integrating technology such as AI into their enhanced models and processes.

Our findings reveal a critical insight: the distinction between surviving and thriving in the decade lies not in whether organisations face disruptions, but in how they respond to it. The most forward-thinking CEOs in Sub-Saharan Africa are already embracing this reality, recognising that today’s challenges demand more than incremental solutions—they require fundamental transformation. 

Sub-Saharan Africa shows slightly lower AI adoption rates (75%) compared to global figures (83%). However, the impact data reveals encouraging signs of effective implementation. These companies are seeing notable gains in efficiency, with 56% reporting increased employee productivity and 53% noting improvements in executive time management—both comparable to, or exceeding, global benchmarks. The financial impact of AI adoption shows promise, with 33% of Sub-Saharan Africa companies reporting revenue increases and 32% seeing profitability gains in the past 12 months. Notably, CEOs have managed this transformation while maintaining workforce stability—only 13% reported AI-related headcount decreases, similar to global trends. 

Looking ahead, these CEOs display measured optimism about AI's potential. While 72% plan to adopt or expand their AI initiatives in the next 12 months (compared to 80% globally), they project meaningful returns: 45% expect AI to increase profitability in the coming year. This pragmatic approach is reflected in their trust levels, with 24% of CEOs expressing high trust and 10% expressing very high trust in AI integration—matching global confidence levels. 

The data suggests Sub-Saharan Africa business leaders are taking a balanced approach to AI adoption—moving purposefully rather than rushing to match global adoption rates, while achieving comparable or better efficiency gains when they do implement. This strategic approach aligns with their broader reinvention efforts, suggestion AI is being integrated thoughtfully into existing transformation initiatives.

In the face of global economic shifts and increasing environmental concerns, CEOs in Sub-Saharan Africa are charting a course towards sustainability. This journey is marked by a blend of optimism and pragmatism as they integrate sustainability into their business strategies through:  

Compensation structures

Sub-Saharan Africa CEOs are more likely to have sustainability metrics tied to their incentives (23% vs. 32% globally). Notably, 9% have over 50% of their compensation linked to sustainability metrics, compared to 4% globally. 

Investment activity

Despite the focus on sustainability in compensation, Sub-Saharan Africa lags in climate-friendly investments (78% vs. 85% globally). Only 15% accept lower returns for such investments, compared to 25% globally. 

Return on investment

Among companies that invested, 21% saw cost decreases, 29% saw cost increases, 32% reported increased revenue, and 4% saw revenue decreases. Government incentives had minimal impact for 69% of companies.  

Barriers to climate-friendly investments 

• Lack of demand from external stakeholders: 27% of CEOs identified this as a barrier, slightly higher than the global average of 24%. 
• Regulatory and policy challenges: 26% of CEOs cited this as a major obstacle, compared to 27% globally. 
• Financial constraints: 23% of CEOs reported a lack of available finance as a significant barrier, similar to the global average of 20%. 

While Sub-Saharan Africa’s CEOs are making strides in incorporating sustainability into their compensation structures, there remains a gap in climate-friendly investments compared to global counterparts. The region faces distinct barriers, however, the commitment to sustainability is evident. With continued focus and strategic investments, Sub-Sharan Africa can overcome these obstacles and lead the way in sustainable business practices.