Ignatius Sehoole | Chairman and CEO | KPMG Southern Africa | mail me |
In an increasingly interconnected world, African businesses find themselves uniquely positioned amidst a complex web of economic, political and environmental challenges. From shifting global trade dynamics to environmental imperatives and rapid technological advancements, businesses today must build resilience as a core capability.
KPMG recently released its 2024 CEO Outlook Survey – Africa, which is the inaugural edition that specifically focuses on the African continent and draws on the perspectives of more than 130 CEOs from Southern, East and West Africa regions. What is interesting to note is that through this survey we have examined how African business leaders, can address the key impacts of the global and local economies to gear businesses for growth.
What has stood out during the review of the survey results is that the whole is very much the sum of the parts, and this becomes a critical point as we all look to tackle global challenges and economic impacts on local African soil, with African-based solutions. While CEOs remain confident in the future of the global economy, there is a significant consideration for escalating uncertainty – which has forced a reset in strategic thinking, a consolidation of talent, a renewed focus on upcoming technology.
Technology and Generative AI
Technology has always been a driver of efficiency and competitiveness, but with the emergence of Generative AI (GenAI), African businesses can unlock new pathways to resilience. As we know, GenAI can support real-time data analysis, enabling business professionals to deliver insights that are not only accurate but also adaptive to immediate market shifts.
For many CEOs across Africa, ensuring Artificial Intelligence (AI) is implemented ethically is a priority, with 77% of the CEOs highlighting ethical dilemmas as some of the toughest challenges in adopting AI within their organisations. What is interesting to note though, is that the KPMG survey also demonstrated that as much as 73% of CEOs believe their leadership team not only understands how GenAI will shake up existing business models but provide opportunities for a competitive edge in their organisations. Nevertheless, a vast majority of CEOs still hold diverse opinions about the readiness for actively deploying GenAI, with 81% of CEOs in Africa believing that GenAI does not pose a major risk for headcount but necessitates upskilling and resource allocation to the workforce.
Given the above, this shift we are seeing will allow companies to focus their resources on strategic decision-making, where resilience strategies are crafted. However, adopting AI responsibly is essential. A commitment to transparency, ethical AI use, and data privacy should guide how companies integrate AI, particularly in sensitive business sectors.
ESG for long-term value creation
Environmental, Social and Governance (ESG) factors are increasingly defining the sustainability of businesses. While at a global level, there is a higher recognition amongst CEOs of the imperative role that ESG plays in customer relationships and positive brand association when compared to African CEOs, according to the recent KPMG survey.
However, one thing that is …
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Read the full article by Ignatius Sehoole, Chairman and CEO, KPMG Southern Africa, as well as a host of other topical management articles written by professionals, consultants and academics in the December/January 2024/25 edition of BusinessBrief.
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