CEOs in Africa are optimistic about their businesses

A SURVEY of 260 CEOs in Africa says they are confident in their company’s prospects for revenue growth over the mid-term. This is the general sentiment that PwC Africa has gathered and details in its ‘Africa Business Agenda, 2014’ report.  CEOs are more confident about their own company’s growth than they are about their industry’s prospects, the report says. Their desire to create something is what drives their organisation’s strategic planning. They rank products/service innovation (31%), increased share in existing markets (27%), followed by new geographic markets (20%) as opportunities for growth but are equally concerned about shifts in consumer spending and behaviours.

CEOs will be more actively looking for partners, to meet financial or operational goals, but they will keep an eye on costs. Almost half of them plan to initiate a new strategic alliance or joint venture in the next 12 months, and about a third expect an acquisition, mainly in their home country or in Africa. China is emerging as a key for consideration for growth prospects, followed by the US and South Africa, respectively.

According to the report, several joint ventures have been established over the past six months, mostly in food & beverage, animal feed, business services, engineering, IT, transport equipment, and media services. This trend is expected to continue in the next few years. Read the complete report.