African CEOs optimistic about mergers and acquisitions, AI integration, and economic recovery - KPMG

Most African CEOs are planning acquisitions over the next three years, says KPMG in its 2025 Africa CEO Outlook survey, as business confidence in domestic economies and growth prospects recover amid the global race to integrate Artificial Intelligence (AI).

After surveying 130 top African CEOs, the KPMG survey report notes that 86% of African CEOs are planning acquisitions over the next three years, up from 77% in the same survey last year. It said this “signals a strong appetite for expansion” by the continent’s top corporates.

“Confidence in domestic economies is also rising, with 63% of African CEOs expressing optimism about their country’s growth prospects up from 61% in 2024,” notes the report.

Moreover, as much as 46% of Africa CEOs were aligning sustainability goals with their core business strategies, while 51% are are prioritising compliance and reporting.

However, African organisations face higher regulatory challenges for their sustainability efforts, with 21% citing the complexity of decarbonising supply chains as their top barrier in achieving net zero and climate ambitions as well as a lack of skills and expertise to successfully implement solutions.

“This highlights that while CEOs confidence levels are strong, the operating environment in African markets remains more fragmented and complex in meeting regulatory demands and net zero targets,” notes the KPMG survey.

Positively though, more than 40% of the surveyed African CEOs indicated that they are actively developing and launching new products or services that address the energy transition. In South Africa, top corporates are rushing to secure renewable energy supply.

Apart from this, another major focus area for African CEOs is integration of AI and upskilling of employees. About 88% of CEOs are expect to increase headcount, with AI seen as a complement to human capability.

AI emerged as the top strategic priority for African CEOs heading into 2026, with 71% investing in AI to drive operational efficiency and long-term resilience. About 26% plan to allocate more than 20% of their annual budget to AI, nearly double the global average of 14%, notes the KPMG report.

“This high level of investment by Africa CEOs, despite declining economic optimism, reflects a shift in mindset where Africa CEOs in West Africa (65%), East Africa (40%) and Southern Africa (38%) all view AI not only as a tool for future growth, but as an immediate lever for operational efficiency, better decision-making, and long-term resilience.”

Despite this, infrastructure gaps complicate progress of technology and AI adoption in Africa as many African organisations continue to face unreliable power supply, limited broadband connectivity, and outdated computing systems. These factors were restricting the use of data-intensive AI solutions, with 96% of African CEOs citing data readiness as a challenge, highlighting the need for local data curation and infrastructure investment.

Despite global economic uncertainty and geopolitical tensions, African CEOs are optimistic about their own organisations’ growth prospects. Regional integration and cross-border collaboration also emerged as growth accelerators, with African CEOs increasingly prioritising intra-African trade and market expansion aligned to AfCFTA opportunities.

"This year’s results reflect a confident and pragmatic leadership mindset across the continent. African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies. The outlook is clear: resilience and innovation will define Africa’s growth story," said Ignatius Sehoole, the CEO of KPMG South Africa.

BUSINESS REPORT